New Semester Started Get 50% OFF Study Help! --h --m --s Claim Now

Question Answers

Textbooks

Find textbooks, questions and answers

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Study Help
Tutors
AI Study Planner NEW
Sell Books

Search
Sign In
Register

study help
business
modern advanced accounting

Advanced Accounting 13th Global Edition Joseph H. Anthony, Bruce Bettinghaus, Floyd A. Beams, Kenneth Smith - Solutions

Apply zone and price analyses to guide the adjustment process to reflect the price paid for the controlling interest.AppendixLO1
Demonstrate the worksheet procedures needed to merge subsidiary accounts.AppendixLO1
Demonstrate the worksheet procedures needed to eliminate the investment account.AppendixLO1
Explain when control might exist without majority ownership.AppendixLO1
State the traditional criteria for presenting consolidated statements, and explain why disclosure of separate subsidiary financial information might be important.AppendixLO1
Differentiate among the accounting methods used for investments, based on the level of common stock ownership in another company.AppendixLO1
PR 8-2 Again, consider the facts presented in PR 8-1 above. Is it acceptable for Pop to continue to account for its investment in Son for the current year, using the equity method of accounting and delaying consolidation until the following year?
PR 8-1 Pop Corporation has owned a 30 percent interest in Son Corporation for ten years, and has properly recorded this investment using the equity method of accounting.On July 1 of the current year Pop purchased an additional 40 percent interest in Son. Is it permissible for Pop to include all
P8-12 Consolidated statement of cash flows–indirect method (sale of an interest)Comparative consolidated financial statements for Pop Corporation and its subsidiary, Son Corporation, at and for the years ended December 31, 2017 and 2016 follow (in thousands).Pop Corporation and Subsidiary
P8-11 Workpaper (midyear acquisition, preacquisition income and dividends, upstream sale of inventory, downstream sale of inventory item used by subsidiary as plant asset)Pam Corporation acquired an 85 percent interest in Sun Corporation on August 1, 2016, for $522,750, equal to 85 percent of the
P8-10 Workpaper (midyear purchase of 10% interest, downstream sales)Pop Corporation acquired a 70 percent interest in Son Corporation on January 1, 2016, for $420,000 cash, when Son’s equity consisted of $300,000 capital stock and $200,000 retained earnings. On July 1, 2017, Pop acquired an
5. Pam uses the equity method for its 70 percent interest in Sun.REQuIRED: Prepare a consolidation workpaper for the year ended December 31, 2016.298 CHAPTER 8
4. Sun sold land that cost $8,000 to Pam for $10,000 on October 15, 2016. Pam still owns the land.
3. Pam Corporation sold equipment to Sun on July 1, 2016, for $30,000. This equipment was purchased by Pam on July 1, 2013, for $36,000 and is being depreciated over a six-year period using the straight-line method (no salvage value). Sun still owns the equipment.
2. Other current liabilities of Sun Corporation on December 31, 2016, include $10,000 dividends declared on December 15 and unpaid at year-end. Sun also declared $10,000 dividends on March 15, 2016.
1. Sun Corporation paid $102,850 for all of Pam’s outstanding bonds on July 1, 2016. These bonds were issued on January 1, 2016, bear interest at 12 percent, have interest payment dates of July 1 and January 1, and mature 10 years from the date of issue. The $6,000 premium on the issue is being
P8-9 Workpaper (noncontrolling interest, preacquisition income, downstream sale of equipment, upstream sale of land, subsidiary holds parent’s bonds)Pam Corporation paid $175,000 for a 70 percent interest in Sun Corporation’s outstanding stock on April 1, 2016. Sun’s stockholders’ equity on
P8-8 Workpaper (midyear acquisition of 80% interest, downstream inventory sales)Pop Corporation acquired an 80 percent interest in Son Corporation on October 1, 2016, for $82,400, equal to 80 percent of the underlying equity of Son on that date plus $16,000 goodwill (total goodwill is $20,000).
P8-7 Consolidated income statement (midyear purchase of additional interest)Comparative separate-company and consolidated balance sheets for Pam Corporation and its 70 percent–owned subsidiary, Sun Corporation, at year-end 2016, were as follows (in thousands):Pam Sun Consolidated Cash $ 100 $ 70
P8-6 Midyear purchase of additional interest, preacquisition income Pop Corporation purchased a 70 percent interest in Son Corporation on January 2, 2016, for $98,000, when Son had capital stock of $100,000 and retained earnings of $20,000. On June 30, 2017, Pop purchased an additional 20 percent
P8-5 Subsidiary issues additional shares Pam Corporation purchased 9,000 shares of Sun Corporation’s $50 par common stock at $90 per share on January 1, 2016, when Sun had capital stock of $500,000 and retained earnings of $300,000. During 2016, Sun Corporation had net income of $50,000 but
P8-4 Reduction of interest owned under three options Pop Corporation owns 300,000 of 360,000 outstanding shares of Son Corporation, and its $8,700,000 Investment in Son account balance on December 31, 2016, is equal to the underlying equity interest in Son. Son’s stockholders’ equity at
P8-3 Sale of an interest during accounting period, upstream building sale Piero SAA was a 90 percent-owned subsidiary of Isac SAA acquired for $3,600,000 on January 1, 2014.The total net assets for Piero SAA at the acquisition date were $3,800,000. The book value identifiable assets and liabilities
3. Prepare a journal entry on Pop’s books to adjust for the additional share issuance on January 1, 2018, if gain or loss is not recognized.
2. Determine Pop’s percentage interest in Son on January 1, 2018, immediately after the additional stock issuance.
P8-2 Computations and entries (subsidiary issues additional shares to public)Pop Corporation purchased 480,000 shares of Son Corporation’s common stock (an 80 percent interest)for $10,600,000 on January 1, 2016. The $1,000,000 excess of investment fair value over book value acquired was
4. Rayan SAL’s income and expenses occurred proportionately during the year.REQuIRED: Prepare a workpaper to consolidate the financial statement of Adnan SAL and subsidiary for the year ended December 31, 2014.
3. Rayan SAL declared dividends of $100,000 and $150,000 on March 1, 2014, and December 31, 2014, respectively
2. On August 1, 2014, Rayan SAL sold land to Adnan SAL with a gain of $150,000. Rayan SAL sold the land to an outside party in 2016.
P8-1 Mid year acquisition, overvalued inventory, upstream sale of land On July 1, 2014, Adnan SAL acquired 75 percent of Rayan SAL for $3,750,000. Rayan SAL stockholders’equity on July 1, 2014 was $4,850,000. The trial balance for both companies for the year ended December 31, 2014 is as follows
E 8-13 Computations and entries (subsidiary issues additional shares to outside entities)Pop Corporation paid $1,800,000 for 90,000 shares of Son Company’s 100,000 outstanding shares on January 1, 2016, when Son’s equity consisted of $1,000,000 of $10 par common stock and $500,000 retained
E 8-12 Journal entries when subsidiary issues additional shares directly to parent Pam Corporation’s Investment in Sun Company account had a balance of $475,000 at December 31, 2016. This balance consisted of goodwill of $35,000 and 80 percent of Sun’s $550,000 stockholders’ equity.On January
E 8-11 Treasury stock by subsidiary Bence NYRT was a 70 percent subsidiary of Nora NYRT. On January 3, 2014, the balance of investment account in Bence NYRT was $350,000 while the total equity of Bence NYRT was $450,000. On January 4, 2014, Bence NYRT purchased 1000 of its own outstanding stocks
E 8-10 Computations for sale of an interest Pam Corporation acquired a 90 percent interest in Sun Corporation on July 1, 2017, for $675,000. The stockholders’equity of Sun at December 31, 2016, was as follows (in thousands):Consolidations—Changes in Ownership Interests 291 Capital stock $500
E 8-9 Midyear piecemeal acquisition with goodwill The stockholder’s equity of Son Corporation at December 31, 2015, 2016, and 2017, is as follows (in thousands):December 31, 2015 2016 2017 Capital stock, $10 par $200 $200 $200 Retained earnings 80 160 220$280 $360 $420 Son reported income of
2. Assume that the 100,000 shares of common stock are sold to Van Company, one of Sun’s noncontrolling stockholders.a. What is Pam’s percentage ownership interest after the new shares are sold to Van?b. Calculate the change in underlying book value of Pam’s investment after the sale.c.
E 8-8 Subsidiary issues additional stock under different assumptions Pam Corporation owns two-thirds (600,000 shares) of the outstanding $1 par common stock of Sun Company on January 1, 2016. In order to raise cash to finance an expansion program, Sun issues an additional 100,000 shares of its
3. Calculate the amount of investment in Talal BSC after the transaction.
2. Prepare a journal entry to adjust investment in Talal BSC account.
E 8-7 Subsidiary sells share to outside entities On January 1, 2014, Yasmeen BSC acquired 90,000 out of 100,000 outstanding common shares of Talal BSC for$720,000. The total stockholders’ equity account of Talal BSC was $800,000 at this date. On January 2, 2014, Talal BSC sold an additional
E 8-6 Additional stock issued by subsidiary directly to parent The stockholders’ equities of Huanh Corporation and its 90 percent-owned subsidiary, Ngon Corporation, on December 31, 2016, are as follows (in thousands):Huanh Ngon Common stock, $10 par $10,000 $2,000 Additional paid-in capital 500
E 8-5 Subsidiary issues additional shares Pupuk Corporation paid $2,500,000 for an 80 percent interest (1,800,000 shares) in Soil Corporation on January 1, 2016.The book value of Soil’s net assets equaled fair value, except undervalued equipment of $50,000 with a five-year remaining useful life,
E 8-4 Computation of gain or loss after deconsolidation Ainun Corporation owns an 80 percent interest in Bahrun Corporation. At December 31, 2016, its Investment in Bahrun account is $3,500,000 and consists of $3,000,000 in equity and the remaining as goodwill. On July 1, 2017, Ainun decides to
E 8-3 Journal entries (sale of equity interest—actual sale date assumption)Pare Corporation acquires a 90 percent interest in Siomay Corporation (360,000 shares) for $5,400,000 when its equity is $5,000,000 and book value of net assets equals fair value. During 2016, Siomay reports net income of
3. Calculate the amount of investment in Edma HF at the end of 2014.
2. Calculate income from Edma HF in 2014.
E 8-2 Piecemeal Acquisition Information regarding the Victor HF acquisition of Edma HF’s common stock in 2014 is as follows:■ On February 15, Victor HF purchased 5 percent of Edma HF’s common stock for $10,000.■ On August 10, Victor HF purchased an additional 10 percent of Edma HF’s
E 8-1 Allocate income and dividends to controlling, noncontrolling, and preacquisition interests On January 1, 2016, Pablo Corporation acquires a 60 percent interest in Sango Corporation. On July 1, 2016, Pablo decides to increase its investment in Sango to 80 percent of interest. Sango’s net
11. Do common stock dividends and stock splits by a subsidiary affect the amounts that appear in the consolidated financial statements? Explain, indicating the items, if any, that would be affected.
10. Can gains or losses to a parent/investor result from a subsidiary’s/investee’s treasury stock transactions?Explain.
9. When does a treasury stock transaction affect the investment account? How is the effect adjusted?
8. Assume that a subsidiary has 10,000 shares of stock outstanding, of which 8,000 shares are owned by the parent. If the parent purchases an additional 2,000 shares of stock directly from the subsidiary at book value, how should the parent record its additional investment? Would your answer have
7. Assume that a subsidiary has 10,000 shares of stock outstanding, of which 8,000 shares are owned by the parent. What equity method adjustment will be necessary on the parent books if the subsidiary sells 2,000 additional shares of its own stock to outside interests at book value? At an amount in
6. When a parent sells a part of its interest in a subsidiary during an accounting period, is the income applicable to the interest sold up to the time of sale included in consolidated net income and parent income under the equity method? Explain.
5. How are the gains or losses of a sale of interest that results in a deconsolidation measured?
4. Isn’t preacquisition income really noncontrolling interest share?
3. How are previously held investments revalued in a piecemeal acquisition?
2. How are preacquisition earnings accounted for by a parent under the equity method? How are they accounted for in the consolidated income statement?
1. Explain the terms preacquisition earnings and preacquisition dividends.
PR 16-2 Under what circumstances can a partnership expel a partner?
PR 16-1 What defines a business as a partnership? What factors need to be examined to determine if an individual is a partner, and not some other type of participant in the business?
P 16-14 Partnership income allocation Tim and Las have been operating an accounting firm as partners for a number of years, and at the beginning of 2016, their capital balances were $60,000 and $75,000, respectively. During 2016, Tim invested an additional $10,000 on April 1 and withdrew $6,000 on
P 16-13 Recording new partner investment—Complex non-revaluation and revaluation cases A condensed balance sheet for the Pet, Qua, and She partnership at December 31, 2016, and their profitand loss-sharing percentages on that date are as follows:Condensed Balance Sheet at December 31, 2016 Cash
3. Prepare a profit distribution schedule for the Par and Boo partnership assuming monthly salary allowances of $800 and $1,000 for Par and Boo, respectively; interest allowances at a 12 percent annual rate on average capital balances; and remaining profits divided equally.
2. Prepare a statement of partnership capital assuming that the partnership agreement provides for monthly salary allowances of $800 and $1,000 for Par and Boo, respectively, and for the division of remaining profits in relation to average capital balances.564 CHAPTER 16
P 16-12 Partnership income allocation The partnership of Par and Boo was formed and commenced operations on March 1, 2016, with Par contributing $30,000 cash and Boo investing cash of $10,000 and equipment with an agreed-upon valuation of $20,000. On July 1, 2016, Boo invested an additional $10,000
P 16-11 Partnership income allocation—Multiple years Har, Ion, and Jer formed a partnership on January 1, 2016, with each partner contributing $20,000 cash.Although the partnership agreement provided that Jer receive a salary of $1,000 per month for managing the partnership business, Jer has
P 16-10 Recording new partner investment—Various situations The AT Partnership was organized several years ago, and on January 1, 2016, the partners agree to admit Car for a 40 percent interest in capital and earnings. Capital account balances and profit- and loss-sharing ratios at January 1,
P 16-9 Recording new partner investment—Various situations Three partners, Pat, Mic, and Hay, have capital balances and profit-sharing ratios at December 31, 2016, as follows:Pat $144,000 profit ratio 2/5 Mic 216,000 profit ratio 1/2 Hay 90,000 profit ratio 1/10 On January 1, 2017, Con invests
4. Dar invests $90,000 cash in the partnership for a 30% interest in the capital and profits, and partnership assets are not revalued.
3. Dar invests $80,000 cash in the partnership for a 20 percent interest in the capital and profits, and partnership assets are revalued.
2. Dar invests $75,000 cash in the partnership for a 25 percent interest in the partnership capital and profits, and partnership assets are revalued.
P 16-8 Recording new partner investment—Various situations The capital accounts of the Ann, Bob, and Car partnership at December 31, 2016, together with profitand loss-sharing ratios, are as follows:Ann (25%) $75,000 Bob (25%) 100,000 Car (50%) 125,000 The partners agree to admit Dar into the
P 16-7 Purchases of interest from existing partners Kiyoshi and Masao are partners with capital balances of $1,750,000 and $1,500,000, respectively. They divide the profits as follows: 70% to Kiyoshi and 30% to Masao. The partners agree to admit Naoki into the partnership. Naoki purchases 40%
3. Give the journal entry (one entry) to correct the books on January 1, 2019.
2. Calculate the balances that should be in the three capital accounts on January 1, 2019, taking into account the corrections that must be made for errors made in the calculation of income in the prior years.
P 16-6 Partner income allocation—Correction of error The partnership of Jon, Kel, and Gla was created on January 2, 2016, with each of the partners contributing cash of $30,000. Reported profits, withdrawals, and additional investments were as follows:Reported Net Income Withdrawals Additional
P 16-5 Profit or loss allocation Ahmed, Kamal, and Karim are in a partnership. They agree on a profit- or loss-sharing ratio of 20 percent, 30 percent, and 50 percent, respectively. In the partnership agreement, Ahmed and Kamal each receive a salary allowance of $100,000, and Karim receives a bonus
3. Remaining profits are to be divided 30 percent, 30 percent, and 40 percent to Ale, Car, and Eri, respectively.Ale had a capital balance of $60,000 at January 1, 2016, and had drawings of $8,000 on July 1, 2016. Car’s capital balance on January 1, 2016, was $90,000, and he invested an
2. Partners are to receive 10 percent interest on average capital balances. Drawings are excluded from computing these averages.
P 16-4 Partnership income allocation—Complex, net loss The partnership agreement of Ale, Car, and Eri provides that profits are to be divided as follows:1. Ale is to receive a salary allowance of $10,000 for managing the partnership business.
P 16-3 Partnership income allocation Ash and Bar are partners with capital balances on January 1, 2016, of $70,000 and $80,000, respectively.The partnership agreement provides that each partner is allowed 10 percent interest on beginning capital balances; that Ash receives a salary allowance of
2. Prepare a balance sheet for the Mor, Osc, and Tre partnership on January 2, 2016, after the admission of Tre, assuming that the assets are not revalued.
P 16-2 Recording new partner investment—Revaluation and nonrevaluation cases The partnership of Mor and Osc is being dissolved, and the assets and equities at book value and fair value and the profit- and loss-sharing ratios at January 1, 2016, are as follows:Book Value Fair Value Cash $ 20,000 $
P 16-1 Partnership income allocation—Statement of partnership capital Ell, Far, and Gar are partners who share profits and losses 30 percent, 30 percent, and 40 percent, respectively, after Ell and Far each receive a $32,000 salary allowance. Capital balances on January 1, 2016, are as
E 16-21 Partnership retirement—Various situations The Cas, Don, and Ear partnership balance sheet and profit and loss percentages at June 30, 2016, are summarized as follows:Assets $500,000 Cas capital (30%) $140,000 Don capital (30%) 175,000 Ear capital (40%) 185,000$500,000 $500,000 On July 1,
3. If a new partnership agreement is not established, how will profits and losses be divided?Partnerships—Formation, Operations, and Changes in Ownership Interests 559
2. In designing a new partnership agreement, how should profits and losses be divided?
E 16-20 Recording new partner investment After operating as partners for several years, Gro and Ham decided to sell one-half of each of their partnership interests to Lot for a total of $70,000, paid directly to Gro and Ham.At the time of Lot’s admittance to the partnership, Gro and Ham had
7. On June 30, 2016, the balance sheet for the partnership of Wil, Bro, and Low, together with their respective profit and loss ratios, is summarized as follows:Assets, at cost $300,000 Wil loan $15,000 Wil capital (20%) 70,000 Bro capital (20%) 65,000 Low capital (60%) 150,000$300,000 Wil has
6. Dix, a partner in an accounting firm, decided to withdraw from the partnership. Dix’s share of the partnership profits and losses was 20 percent. Upon withdrawing from the partnership, he was paid $74,000 in final settlement for his partnership interest. The total of the partners’ capital
5. Ker and Pat are partners with capital balances of $60,000 and $20,000, respectively. Profits and losses are divided in the ratio of 60:40. Ker and Pat decide to admit Gra, who invested land with a fair value of $15,000 for a 20 percent capital interest in the partnership. Gra’s capital account
On June 1, 2016, Sid was admitted to the partnership when he purchased, for $132,000, a proportionate interest from New and Sha in the net assets and profits of the partnership. As a result of this transaction, Sid acquired a one-fifth interest in the net assets and profits of the firm. Assuming
4. The capital accounts of the partnership of New, Sha, and Jac on June 1, 2016, are presented, along with their respective profit and loss ratios:New $139,200 1/2 Sha 208,800 1/3 Jac 96,000 1/6$444,000
3. Wil desires to purchase a one-fourth capital and profit and loss interest in the partnership of Eli, Geo, and Dic. The three partners agree to sell Wil one-fourth of their respective capital and profit and loss interests in exchange for a total payment of $40,000. The capital accounts and the
2. Elt and Don are partners who share profits and losses in the ratio of 7:3, respectively. On November 5, 2016, their respective capital accounts were as follows:Elt $70,000 Don 60,000$130,000 On that date they agreed to admit Kra as a partner with a one-third interest in the capital and profits
The assets and liabilities are recorded and presented at their respective fair values. Jon is to be admitted as a new partner with a 20 percent capital interest and a 20 percent share of profits and losses in exchange for a cash contribution. No goodwill or bonus is to be recorded. How much cash
1. Partners All, Bak, and Coe share profits and losses 50:30:20, respectively. The balance sheet at April 30, 2016, follows:Assets Equities Cash $40,000 Accounts payable $100,000 Other assets 360,000 All capital 74,000 Bak capital 130,000 Coe capital 96,000$400,000 $400,000
5. Bec, an active partner in the Bec and Cri partnership, receives an annual bonus of 25 percent of partnership net income after deducting the bonus. For the year ended December 31, 2016, partnership net income before the bonus amounted to $300,000. Bec’s 2016 bonus should be:a $56,250 b $60,000
4. Fox, Gre, and How are partners with average capital balances during 2016 of $120,000, $60,000, and $40,000, respectively. Partners receive 10 percent interest on their average capital balances. After deducting salaries of $30,000 to Fox and $20,000 to How, the residual profit or loss is divided

Showing 1400 - 1500 of 5104

First
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
Last

Step by Step Answers

Services

Sitemap
Fun
Definitions
Become Tutor
Used Textbooks
Study Help Categories
Recent Questions
Expert Questions
Campus Wear
Sell Your Books

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship
Online Quiz
Give Feedback, Get Rewards

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Student Discount
Campus Ambassador

Secure Payment

Download Our App

© 2026 SolutionInn. All Rights Reserved