Questions and Answers of Modern Advanced Accounting

Prather Company owns 80% of the common stock of Stone Company. The stock was purchased for $960,000 on January 1, 2017, when Stone Company?s retained earnings were $675,000. On January 1, 2019, Stone
Prout Company owns 80% of the common stock of Sexton Company. The stock was purchased for $1,600,000 on January 1, 2017, when Sexton Company?s retained earnings were $800,000. On January 1, 2019,
Platt Company acquired an 80% interest in Sloane Company when the retained earnings of Sloane Company were $300,000. On January 1, 2019, Sloane Company recorded a $250,000 gain on the sale to Platt
Padilla Company acquired 90% of the outstanding common stock of Sanchez Company on June 30, 2019, for $426,000. On that date, Sanchez Company had retained earnings in the amount of $60,000, and the
Prather Company owns 80% of the common stock of Stone Company. The stock was purchased for $960,000 on January 1, 2017, when Stone Company?s retained earnings were $675,000. On January 1, 2019, Stone
Pomeroy Corporation owns an 80% interest in Sherer Company and a 90% interest in Tampa Company. On January 2, 2019, Tampa Company sold equipment with a book value of $600,000 to Sherer Company for
Using the information presented in Problem 7-10 prepare a consolidated financial statements workpaper for the year ended December 31, 2020, using the trial balance format. Prout Company Sexton
Pinta Company, a forklift manufacturer, owns 80% of the voting stock of Standard Company. On January 1, 2019, Pinta Company sold forklifts to Standard Company for $400,000. The forklifts, which
Prout Company owns 80% of the common stock of Sexton Company. The stock was purchased for $1,600,000 on January 1, 2017, when Sexton Company?s retained earnings were $800,000. On January 1, 2019,
During 2018, Pier One Company billed its 80% owned subsidiary, Scale Company, $700,000 for architectural services. The cost to Pier One Company of providing the services was $400,000 for salaries and
Pierce Company acquired a 90% interest in Sanders Company on January 1, 2019, for $1,480,000. At this time, Sanders Company?s common stock and retained earnings balances were $1,000,000 and
P Company owns 80% of the outstanding stock of S Company. The 2020 sales of S Company included revenue of $390,000 consisting of consulting services billed to P Company at cost plus 30%. P Company
On January 1, 2018, Phelps Company purchased an 85% interest in Sloane Company for $955,000 when the retained earnings of Sloane Company were $150,000. The difference between implied and book value
On January 1, 2020, P Company acquired a 90% interest in S Company. During 2021, S Company sold merchandise to P Company at 25% above cost in the amount (selling price) of $225,000. At the end of the
Parsons Company acquired 90% of the outstanding common stock of Shea Company on June 30, 2019, for $426,000. On that date, Shea Company had retained earnings in the amount of $60,000, and the fair
On January 1, 2018, Price Company acquired an 80% interest in the common stock of Smith Company on the open market for $750,000, the book value at that date. On January 1, 2019, Price Company
Pitts Company owns 80% of the common stock of Shannon Company. The stock was purchased for $960,000 on January 1, 2017, when Shannon Company?s retained earnings were $675,000. On January 1, 2019,
P Company owns 90% of the outstanding common stock of S Company. On January 1, 2020, S Company sold land to P Company for $600,000. S Company originally purchased the land for $400,000.On January 1,
Using the information presented in Problem 7-4, prepare a consolidated financial statements workpaper for the year ended December 31, 2020, using the trial balance format. Prout Company $ 568,000
Patterson Company owns 80% of the outstanding common stock of Stevens Company. On June 30, 2018, land costing $500,000 is sold by one affiliate to the other for $800,000.Required:Prepare in general
Prout Company owns 80% of the common stock of Sexton Company. The stock was purchased for $1,600,000 on January 1, 2017, when Sexton Company?s retained earnings were $800,000. On January 1, 2019,
Procter Company owns 90% of the outstanding stock of Silex Company. On January 1, 2019, Silex Company sold land to Procter Company for $350,000. Silex had originally purchased the land on June 30,
On January 1, 2020, P Company purchased equipment from its 80% owned subsidiary for $600,000. The carrying value of the equipment on the books of S Company was $450,000. The equipment had a remaining
Pearson Company owns 90% of the outstanding common stock of Spring Company. On January 1, 2019, Spring Company sold equipment to Pearson Company for $200,000. Spring Company had purchased the
Pico Company, a truck manufacturer, owns 90% of the voting stock of Seward Company. On January 1, 2019, Pico Company sold trucks to Seward Company for $350,000. The trucks, which represented
Powell Company owns 80% of the outstanding common stock of Sullivan Company. On June 30, 2019, Sullivan Company sold equipment to Powell Company for $500,000. The equipment cost Sullivan Company
On January 1, 2018, Porsche Company acquired 100% of Saab Company?s stock for $450,000 cash. The fair value of Saab?s identifiable net assets was $375,000 on this date. Porsche Company decided to
A 90% interest in Saxton Corporation was purchased by Palm Incorporated on January 2, 2019. The capital stock balance of Saxton Corporation was $3,000,000 on this date, and the balance in retained
A 90% interest in Saxton Corporation was purchased by Palm Incorporated on January 2, 2019. The capital stock balance of Saxton Corporation was $3,000,000 on this date, and the balance in retained
Pascal Corporation purchased 90% of the stock of Salzer Company for $2,070,000 on January 1, 2020. On this date, the fair value of the assets and liabilities of Salzer Company was equal to their book
A 90% interest in Saxton Corporation was purchased by Palm Incorporated on January 2, 2019. The capital stock balance of Saxton Corporation was $3,000,000 on this date, and the balance in retained
On January 1, 2018, Piper Company acquired an 80% interest in Sand Company for $2,276,000. At that time the capital stock and retained earnings of Sand Company were $1,800,000 and $700,000,
On January 2, 2018, Page Corporation acquired a 90% interest in Salcedo Company for $3,500,000. At that time Salcedo Company had capital stock of $2,250,000 and retained earnings of $1,250,000. The
On January 1, 2018, Point Corporation acquired an 80% interest in Sharp Company for $2,000,000. At that time Sharp Company had capital stock of $1,500,000 and retained earnings of $700,000. The book
Padilla Company purchased 80% of the common stock of Sanoma Company in the open market on January 1, 2018, paying $31,000 more than the book value of the interest acquired. The difference between
Meredith Company and Kyle Company were combined in a purchase transaction. Meredith was able to acquire Kyle at a bargain price. The sum of the market or appraised values of identifiable assets
On January 1, 2019, Packard Company purchased an 80% interest in Sage Company for $600,000. On this date Sage Company had common stock of $150,000 and retained earnings of $400,000. Sage Company’s
Park Company acquires an 85% interest in Sunland Company on January 2, 2020. The resulting difference between book value and the value implied by the purchase price in the amount of $120,000 is
On January 1, 2019, P Company purchased an 80% interest in S Company for $600,000, at which time S Company had retained earnings of $300,000 and capital stock of $350,000. Any difference between book
On January 1, 2020, Porter Company purchased an 80% interest in Salem Company for $260,000. On this date, Salem Company had common stock of $207,000 and retained earnings of $130,500. An examination
Pace Company purchased 20,000 of the 25,000 shares of Saddler Corporation for $525,000. On January 3, 2019, the acquisition date, Saddler Corporation?s capital stock and retained earnings account
The ?goodwill? footnote for American Oriental Bioengineering 2011 10K is shown below. When firms make acquisitions, the goodwill recorded in an acquisition must be assigned to a reportable segment.
On January 1, 2020, Payne Corporation purchased a 75% interest in Salmon Company for $585,000. A summary of Salmon Company?s balance sheet on that date revealed the following: The equipment had an
On January 1, 2018, Pam Company purchased an 85% interest in Shaw Company for $540,000. On this date, Shaw Company had common stock of $400,000 and retained earnings of $140,000. An examination of
On November 21, 2016, Tesla acquired SolarCity by issuing stock valued at $2.146 billion dollars. Tesla issued 11,124,497 shares of 0.001 par value common stock.On the date of acquisition, the
On January 1, 2019, Polar Company, which owns an 80% interest in Superior Company, sold Superior Company equipment with a book value of $400,000 for $560,000. The equipment had an estimated remaining
On January 1, 2019, Sherwood Company, an 80% owned subsidiary of Paradise Company, sold to Paradise Company equipment with a book value of $600,000 for $840,000. The equipment had an estimated
On January 1, 2018, Perry Company purchased 80% of Selby Company for $960,000. At that time Selby had capital stock outstanding of $400,000 and retained earnings of $400,000. The fair value of Selby
Paque Corporation owns 90% of the common stock of Segal Company. The stock was purchased for $810,000 on January 1, 2017, when Segal Company?s retained earnings were $150,000. Financial data for
Pruitt Corporation owns 90% of the common stock of Sedbrook Company. The stock was purchased for $540,000 on January 1, 2017, when Sedbrook Company?s retained earnings were $100,000. Preclosing trial
On January 1, 2017, Paul Company purchased 80% of the voting stock of Simon Company for $1,360,000 when Simon Company had retained earnings and capital stock in the amounts of $450,000 and
On January 1, 2018, Perry Company purchased 80% of Selby Company for $960,000. At that time Selby had capital stock outstanding of $400,000 and retained earnings of $400,000. The fair value of Selby
Paque Corporation owns 90% of the common stock of Segal Company. The stock was purchased for $810,000 on January 1, 2017, when Segal Company?s retained earnings were $150,000. Financial data for
Pruitt Corporation owns 90% of the common stock of Sedbrook Company. The stock was purchased for $540,000 on January 1, 2017, when Sedbrook Company?s retained earnings were $100,000. Preclosing trial
Penn Company owns a 90% interest in Salvador Company and an 80% interest in Sencal Company. Profit remaining in ending inventories from intercompany sales for 2019 and 2020 is indicated
On January 1, 2017, Perry Company purchased 80% of Selby Company for $990,000. At that time Selby had capital stock outstanding of $350,000 and retained earnings of $375,000. The fair value of Selby
On January 2, 2019, Patten Company purchased a 90% interest in Sterling Company for $1,400,000. At that time Sterling Company had capital stock outstanding of $800,000 and retained earnings of
Paque Corporation owns 90% of the common stock of Segal Company. The stock was purchased for $810,000 on January 1, 2017, when Segal Company?s retained earnings were $150,000. Financial data for
Pruitt Corporation owns 90% of the common stock of Sedbrook Company. The stock was purchased for $625,500 on January 1, 2017, when Sedbrook Company?s retained earnings were $95,000. Preclosing trial
Pace Company owns 85% of the outstanding common stock of Sand Company and all the outstanding common stock of Star Company. During 2020, the affiliates engaged in intercompany sales as
Peer Company owns 80% of the common stock of Seacrest Company. Peer Company sells merchandise to Seacrest Company at 25% above its cost. During 2019 and 2020 such sales amounted to $265,000 and
Shell Company, an 85% owned subsidiary of Plaster Company, sells merchandise to Plaster Company at a markup of 20% of selling price. During 2019 and 2020, intercompany sales amounted to $442,500 and
Peel Company owns 90% of the common stock of Seacore Company. Seacore Company sells merchandise to Peel Company at 20% above cost. During 2019 and 2020, such sales amounted to $436,000 and $532,000,
Peat Company owns a 90% interest in Seaton Company. The consolidated income statement drafted by the controller of Peat Company appeared as follows: During your audit you discover that intercompany
Refer to Exercise 6‑7. Using the same figures, assume that the sales were upstream instead of downstream.Exercise 6‑7Perkins Company owns 85% of Sheraton Company. Perkins Company sells
Perkins Company owns 85% of Sheraton Company. Perkins Company sells merchandise to Sheraton Company at 20% above cost. During 2019 and 2020, such sales amounted to $450,000 and $486,000,
Payne Company owns all the outstanding common stock of Sierra Company and 80% of the outstanding common stock of Santa Fe Company. The amount of intercompany profit included in the inventories of
Refer to Exercise 6‑4. Using the same figures, assume that the merchandise mentioned was included in Pearce’s inventory, having been purchased from Searl.375,000 to equipment of Searl Company
On January 1, 2019, Pearce Company purchased an 80% interest in the capital stock of Searl Company for $2,460,000. At that time, Searl Company had capital stock of $1,500,000 and retained earnings of
Peabody Company owns 90% of the outstanding capital stock of Sloane Company. During 2019 and 2020 Sloane Company sold merchandise to Peabody Company at a markup of 25% of selling price. The selling
Refer to Exercise 6‑1. Calculate the amount of the noncontrolling interest to be deducted from consolidated income in arriving at 2019 controlling interest in consolidated net income.Exercise
P Company owns 80% of the outstanding stock of S Company. During 2019, S Company reported net income of $525,000 and declared no dividends. At the end of the year, S Company’s inventory included
On January 1, 2020, Pruitt Company issued 25,500 shares of its common stock ($2 par) in exchange for 85% of the outstanding common stock of Shah Company. Pruitt?s common stock had a fair value of $28
The Mcquire Company is considering acquiring 100% of the Sosa Company. The management of Mcquire fears that the acquisition price may be too high. Condensed financial statements for Sosa Company for
On January 1, 2019, Palmer Company acquired a 90% interest in Stevens Company at a cost of $1,000,000. At the purchase date, Stevens Company?s stockholders? equity consisted of the following: Common
On January 1, 2018, Porter Company purchased an 80% interest in the capital stock of Salem Company for $850,000. At that time, Salem Company had capital stock of $550,000 and retained earnings of
On January 2, 2019, Press Company purchased on the open market 90% of the outstanding common stock of Sensor Company for $800,000 cash. Balance sheets for Press Company and Sensor Company on January
On January 1, 2019, Palmer Company acquired a 90% interest in Stevens Company at a cost of $1,000,000. At the purchase date, Stevens Company?s stockholders? equity consisted of the following: Common
On January 1, 2018, Porter Company purchased an 80% interest in the capital stock of Salem Company for $850,000. At that time, Salem Company had capital stock of $550,000 and retained earnings of
Pearson Company purchased a 100% interest in Sanders Company and a 90% interest in Taylor Company on January 2, 2019, for $800,000 and $1,300,000, respectively. The account balances and fair values
On January 1, 2019, Pump Company acquired all the outstanding common stock of Sound Company for $556,000 in cash. Financial data relating to Sound Company on January 1, 2019, are presented
Patten Corporation acquired an 85% interest in Savage Company for $3,100,000 on January 1, 2019. On this date, the balances in Savage Company?s capital stock and retained earnings accounts were
On January 1, 2019, Pueblo Corporation purchased a 75% interest in Sanchez Company for $900,000. A summary of Sanchez Company?s balance sheet at date of purchase follows: The equipment had an
On January 1, 2019, Perini Company purchased an 85% interest in Silvas Company for $400,000. On this date, Silvas Company had common stock of $90,000 and retained earnings of $210,000. An
On January 1, 2019, Palmer Company acquired a 90% interest in Stevens Company at a cost of $1,000,000. At the purchase date, Stevens Company?s stockholders? equity consisted of the following: Common
On January 1, 2018, Porter Company purchased an 80% interest in the capital stock of Salem Company for $850,000. At that time, Salem Company had capital stock of $550,000 and retained earnings of
Perke Corporation purchased 80% of the stock of Superstition Company for $1,970,000 on January 1, 2020. On this date, the fair value of the assets and liabilities of Superstition Company was equal to
On January 1, 2019, Paxton Company purchased a 70% interest in Sagon Company for $1,300,000, at which time Sagon Company had retained earnings of $500,000 and capital stock of $1,000,000. On January
On January 1, 2019, Palmero Company purchased an 80% interest in Santos Company for $2,800,000, at which time Santos Company had retained earnings of $1,000,000 and capital stock of $500,000. On the
Corporation A purchased the net assets of Corporation B for $80,000. On the date of A’s purchase, Corporation B had no long-term investments in marketable securities and $10,000 (book and fair
The consolidated income statement for the year December 31, 2019, and comparative balance sheets for 2018 and 2019 for Parks Company and its 90% owned subsidiary SCR, Inc. are as follows: SCR,
A consolidated income statement for 2018 and comparative consolidated balance sheets for 2017 and 2018 for P Company and its 80% owned subsidiary follow: Other information: 1. Equipment
Pillow Company purchased 90% of the common stock of Satin Company on May 1, 2016, for a cash payment of $474,000. December 31, trial balances for Pillow and Satin were: Satin Company declared a
Punca Company purchased 85% of the common stock of Surrano Company on July 1, 2017, for a cash payment of $590,000. December 31, 2017, trial balances for Punca and Surrano were: Surrano Company
December 31, 2019, trial balances for Pledge Company and its subsidiary Stom Company follow: Pledge Company purchased 72,000 shares of Stom Company?s common stock on January 1, 2016, for $300,000.
On January 1, 2017, Parker Company purchased 90% of the outstanding common stock of Sid Company for $180,000. At that time, Sid?s stockholders? equity consisted of common stock, $120,000; other
Price Company purchased 90% of the outstanding common stock of Score Company on January 1, 2016, for $450,000. At that time, Score Company had stockholders? equity consisting of common stock,
Poco Company purchased 80% of Solo Company?s common stock on January 1, 2017, for $250,000. On December 31, 2017, the companies prepared the following trial balances: Required: Prepare a
December 31, 2019, trial balances for Pledge Company and its subsidiary Stom Company follow: Pledge Company purchased 72,000 shares of Stom Company?s common stock on January 1, 2016, for $300,000.
On January 1, 2017, Parker Company purchased 95% of the outstanding common stock of Sid Company for $160,000. At that time, Sid?s stockholders? equity consisted of common stock, $120,000; other

Showing 1100 - 1200 of 1393