Advanced Accounting
12th Edition
ISBN: 9781305084858
Author: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 2, Problem 9.2E
To determine
Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.
To Prepare: Value analysis, determination and distribution of excess schedule.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Given the following account balances of MASK RIDER Co. for the year ended December 31,
2020, prepare a Statement of Financial Position using the report form.
Mask Rider, capital
Beg. Balance
PO
Contribution
30, d00
DUE ON MAY 15, 2021
Withdrawal
15, 000
Additional cortribution
5, 000
Net Income
Ending Balance
57, 450
Property, Plant and Equipment
P 300, 000
Accumulated Depreciation
5, 000
Accounts payable
B, 110
Uneamed income
1, 395
Cash
44, 535
Prepaid rent
5, 000
Salaries payable
1, 000
Lang-term note payable
23. 000
Accounts receivable
575
Merchandise Inventory
15,345
Utilities payable
4. 00
Dex Lukes at December 31, 2020, the end of its first year of operations has the following details:
Sales revenue P317,050
Cost of goods sold 144,760
Selling and administrative expenses 49,700
Gain on sale of plant assets 28,090
Unrealized gain on available-for-sale debt investments 9,890
Interest expense P6,250 Loss on discontinued operations P12,880 Dividends declared and paid
P4,760
Compute the following:
(a) Income from operations
(b) Net income
(C) Comprehensive income
Epsilon Golf Company's balance sheet at December 31, 2021 is as follows:
(Click the icon to view the balance sheet.)
Requirement
1. Perform a vertical analysis of Epsilon Golf Company's balance sheet to determine the component percentages of its assets, liabilities, and stockholders' equity. (Round the percentages to the nearest
hundredth percent, X.XX%. Do not enter the % symbol in any of the input fields.)
Assets
Total current assets
Property, plant, and equipment, net
Other assets
Total assets
Liabilities
Total current liabilities
December 31, 2021
Long-term debt
Total liabilities
Stockholders' Equity
Total stockholders' equity
Total liabilities and stockholders' equity
$
$
$
$
Amount
42,465
203,775
38,760
285,000
46,455
107,730
154,185
130,815
285,000
% of total
%
%
%
%
%
%
%
%
%
Chapter 2 Solutions
Advanced Accounting
Ch. 2 - Prob. 1UTICh. 2 - Prob. 2UTICh. 2 - Prob. 3UTICh. 2 - Prob. 4UTICh. 2 - Prob. 5UTICh. 2 - Prob. 6UTICh. 2 - Santos Corporation is considering investing in...Ch. 2 - Prob. 2.1ECh. 2 - Prob. 2.2ECh. 2 - Prob. 3.1E
Ch. 2 - Prob. 3.2ECh. 2 - Prob. 4.1ECh. 2 - Prob. 4.2ECh. 2 - Prob. 4.3ECh. 2 - Prob. 5.1ECh. 2 - Prob. 5.2ECh. 2 - Prob. 6.1ECh. 2 - Prob. 6.2ECh. 2 - Prob. 7.1ECh. 2 - Prob. 7.2ECh. 2 - Prob. 8.1ECh. 2 - Prob. 9.1ECh. 2 - Prob. 9.2ECh. 2 - Prob. 9.4ECh. 2 - Prob. 2A.1AECh. 2 - Prob. 2.1.1PCh. 2 - Prob. 2.1.2PCh. 2 - Prob. 2.2.1PCh. 2 - Prob. 2.2.2PCh. 2 - Prob. 2.2.3PCh. 2 - Prob. 2.3.1PCh. 2 - Prob. 2.3.2PCh. 2 - Prob. 2.3.3PCh. 2 - Prob. 2.4.1PCh. 2 - Prob. 2.4.2PCh. 2 - Prob. 2.4.3PCh. 2 - Prob. 2.5.1PCh. 2 - Prob. 2.5.2PCh. 2 - Prob. 2.5.3PCh. 2 - Prob. 2.6.1PCh. 2 - Prob. 2.6.2PCh. 2 - Prob. 2.7.1PCh. 2 - Prob. 2.7.2PCh. 2 - Prob. 2.8.1PCh. 2 - Prob. 2.8.2PCh. 2 - Prob. 2.9.1PCh. 2 - Prob. 2.9.2PCh. 2 - Prob. 2.10.1PCh. 2 - Prob. 2.11.1PCh. 2 - Prob. 2.12.1PCh. 2 - Prob. 2.12.2PCh. 2 - Prob. 2.13.1PCh. 2 - Prob. 2.13.2PCh. 2 - Prob. 2.14.1PCh. 2 - Prob. 2.14.2PCh. 2 - Prob. 2.15.1PCh. 2 - Prob. 2.15.2PCh. 2 - Prob. 2A.1.1APCh. 2 - Prob. 2A.1.2APCh. 2 - Prob. 2.1.1CCh. 2 - Prob. 2.1.2C
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- 7) Evergreen traders had the gross profit of RO 78,200, advertising of RO 1,700, salesperson salary of RO 1,500, office rent of RO 7,400, office insurance of RO 1,200, interest expense of RO 500, loss on sale of machinery RO 700, dividend revenue RO 2,500 and repairs and maintenance of RO 450 for the year 2019. Calculate and show the Net income of the business transferred to the balance sheet for the year ended 2019? a. RO 68,650 b. RO 78,200 c. RO 69,550 d. RO 67,250arrow_forwardThe following balance sheet has been produced for Litz Corporation as of August 8, 2020, the date on which the company is to begin selling assets as part of a corporate liquidation: LITZ CORPORATIONBalance SheetAugust 8, 2020 Assets Cash $ 16,000 Accounts receivable (net) 82,000 Investments 32,000 Inventory (net realizable value is expected to approximate cost) 69,000 Land 30,000 Buildings (net) 340,000 Equipment (net) 210,000 Total assets $779,000 Liabilities and Equities Accounts payable $150,000 Notes payable—current (secured by inventory) 132,000 Notes payable—long term [secured by land and buildings (valued at $300,000)] 259,000 Common stock 135,000 Retained earnings 103,000 Total liabilities and equities $779,000 The following events occur during the liquidation process: The investments are sold for $39,000. The inventory is sold at auction for $48,000. The money derived…arrow_forwardQ.Relax Company provided the following information for the purpose of presenting the statement of financial position on December 31, 2020: Retained Earnings 87,600 Cash 32,800 Common stock 20,000 Inventory 39,800 Long-term liabilities 25,000 Leasehold Improvements 100,000 Accrued Expenses 1,000 Accumulated Depreciation (2,000) Accounts Payable 49,000 Trademarks 20,000 Accumulated Amortization (8,000) Required: Prepare in good form a properly classified statement of financial position on December 31,2020 with supporting notes and computations.arrow_forward
- On July 1, 2020, Concord Corporation purchased Young Company by paying $258,200 cash and issuing a $141,000 note payable to Steve Young. At July 1, 2020, the balance sheet of Young Company was as follows. Cash Accounts receivable Inventory Land Buildings (net) Equipment (net) Trademarks $50,600 91,800 109,000 41,700 75,600 70,900 12,000 $451,600 Accounts payable Stockholders' equity $207,000 244,600 $451,600 The recorded amounts all approximate current values except for land (fair value of $60,500), inventory (fair value of $126,400), and trademarks (fair value of $17,360).arrow_forwardCulver Inc. applies ASPE and had the following statement of financial position at the end of operations for 2019: CULVER INC.Statement of Financial PositionDecember 31, 2019 Cash $50,500 Accounts payable $ 93,000 Accounts receivable 90,000 Long-term debt 85,000 Inventory 82,000 Common shares 100,000 Machinery (net) 125,000 Retained earnings 89,500 Trademarks 20,000 $367,500 $367,500 During 2020, the following occurred: 1. Jia Inc. sold some of its trademarks. The trademarks had an unlimited useful life and a cost of $10,000. They were sold for proceeds of $19,500. 2. Machinery was purchased in exchange for long-term debt of $40,000. 3. Long-term debt in the amount of $16,000 was retired before maturity by paying $16,000 cash. 4. An additional $11,500 in common shares was issued. 5. Dividends totalling $13,200 were declared and paid to shareholders. Dividends paid are treated as financing…arrow_forwardThe comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Dux Company. Additional information from Dux’s accounting records is provided also. Additional information from the accounting records: A building that originally cost $144,000, and which was three-fourths depreciated, was sold for $7,000. The common stock of Byrd Corporation was purchased for $5,000 as a long-term investment. Property was acquired by issuing a 13%, seven-year, $43,000 note payable to the seller. New equipment was purchased for $54,000 cash. On January 1, 2021, bonds were sold at their $38,000 face value. On January 19, Dux issued a 5% stock dividend (1,000 shares). The market price of the $10 par value common stock was $14 per share at that time. Cash dividends of $26,000 were paid to shareholders. On November 12, 12,500 shares of common stock were repurchased as treasury stock at a cost of $8,000. Required:Prepare the statement of cash flows for Dux Company…arrow_forward
- The following trial balance has been extracted from the books of account of Beta Co at 31 March 2021: s00 S00 Administrative expenses 210 Called up share capital (ordinary shares of $1 fully paid) Trade receivables 600 470 Bank overdraft 80 Income tax (overprovision in previous year) Provision for retirement benefit costs Distribution costs Non-current asset investments Investment income 25 180 420 560 75 Plant and equipment At cost 750 Accumulated depreciation (at 31 March 2021) Retained earnings (at 1 April 2020) Purchases 220 240 960 Inventories (at 1 April 2020) Trade payables 140 260 Revenue 1,950 Interim dividend paid 120 3.630 3.630 Additional information Inventories at 31 March 2021 were valued at $ 150,000. Required: In so far as the information permits, prepare the company's income statement for the year to 31 March 2021, a statement of financial position at that date and a statement of changes in equity.arrow_forwardThe comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Wright Company. Additional information from Wright's accounting records is provided also. WRIGHT COMPANYComparative Balance SheetsDecember 31, 2021 and 2020($ in thousands) 2021 2020 Assets Cash $ 79 $ 40 Accounts receivable 83 85 Short-term investment 33 12 Inventory 83 80 Land 58 70 Buildings and equipment 525 420 Less: Accumulated depreciation (127 ) (85 ) $ 734 622 Liabilities Accounts payable $ 29 $ 37 Salaries payable 4 7 Interest payable 4 2 Income tax payable 6 11 Notes payable 0 21 Bonds payable 162 120 Shareholders’ Equity Common stock 265 220 Paid-in capital—excess of par 145 110 Retained earnings…arrow_forwardYou have been engaged to examine the books and other records of Golden Harvest Corporation, which started its operations in 2020. Your examination disclosed the following information: (1) Reported profit (loss) for the year: 2020 2021 2022 P(250,000) 320,000 380,000 (2) The company during the three-year period failed to recognize accruals and deferrals at yearend. The amounts omitted were as follows: Accrued expenses Accrued income Prepaid expenses Unearned income 2020 P20,000 32,000 12,000 15,000 2021 P25,000 30,000 18,000 10,000 2022 P30,000 26,000 24,000 8,000 (3) Goods which were in transit at yearend were omitted from the physical count. These goods had been property recorded as purchases during the year: P28,000 64,000 End of 2021 End of 2022 (4) The company purchased a machine costing P80,000 on August 31, 2020. The amount was recorded as expense. The company depreciates all its property, plant and equipment using the straight-line method, rounded to the nearest month and…arrow_forward
- II. Prepare your horizontal and common-size Statement of Financial Position for 2020 and 2019 for llang-llang Trading Company in a blank sheet of paper. The following are the company's data of llang-llang Trading Company: 2020 2021 Current Assets 192,375 937,508 152,618 265,500 967,500 159,750 1,392,750 Property, Plants and Equipment Other Assets Total Assets 1,282,500 Liabilities 220,590 491,198 Total Current Liabilities 225,450 460,250 Long Term Debt Owner's Capital 570,713 706,950 1,282,500 1,392,750arrow_forwardThe company's return on assets for the year ending December 31, 2019, is not exactly matching any of the options provided. However, I will now read back the entire question and provide the closest answer from the options given. A company reported the following financial information: As of December 31, 2018: total assets of $10,000,000 net sales revenue of $6,000,000 Net income of $1,000,000 As of December 31, 2019: total assets of $14,000,000 net sales revenue of $8,000,000 net income of $2,200,000 What was the company's return on assets for the year ending December 31, 2019? 8.33% 14.29% 16.67% 66.67%arrow_forwardOn December 12, 2021, an equity investment costing $99,000 was sold for $138,000. The investment was carried in the balance sheet at $94,000, and was accounted for under the equity method. An error was made in which the total of the sale proceeds was credited to the investment account. Required:1. & 2. Prepare the following journal entries (Ignore income taxes). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning