1) Platt Corporation paid $87-500 for a 70- interest in Suve Corporati.pdf

•

0 likes•2 views

1) Platt Corporation paid $87,500 for a 70% interest in Suve Corporation on January 1, 2014, when Suve's Capital Stock was $70,000 and its Retained Earnings $30,000. The fair values of Suve's identifiable assets and liabilities were the same as the recorded book values on the acquisition date. Trial balances at the end of the year on December 31, 2014 are given below: Platt Suve Cash $4,500 $20,000 Accounts Receivable 26,000 30,000 Inventory 100,000 80,000 Investment in Suve 87,500 Cost of Goods Sold 60,000 40,000 Operating Expenses 22,000 37,000 Dividends 15,000 10,000 $315,000 $217,000 Liabilities $47,000 $27,000 Capital stock, $10 par value 100,000 70,000 Additional Paid-in Capital 10,000 Retained Earnings 31,000 30,000 Sales Revenue 120,000 90,000 Dividend Income 7,000 0 $315,000 $217,000 During 2014, Platt made only two journal entries with respect to its investment in Suve. On January 1, 2014, it debited the Investment in Suve account for $87,500 and on November 1, 2014, it credited Dividend Income for $7,000. Required: 1. Prepare a consolidated income statement and a statement of retained earnings for Platt and Subsidiary for the year ended December 31, 2014. 2. Prepare a consolidated balance sheet for Platt and Subsidiary as of December 31, 2014..

Education

Similar to 1) Platt Corporation paid $87-500 for a 70- interest in Suve Corporati.pdf

A company declared a $0.25 per share cash dividend. The company ha.docx

evonnehoggarth79783

Intermediate accounting 15th edition cHAPTER 5 /

Homeworkquick

The following information about Sung Company on January 1, 2014 was available: On January 1, 2014 Pan Company paid $108 , 000 to acquire 60% or sung company's outstanding common stock. The fair value of the noncontrolling interest was $72 , 000 on January 1, 2014. Sung continues its corporate existence as a subsidiary of Pan Company. Pan uses the complete equity method to account for its investment in Sung. The remaining useful life of the building was six years with no salvage value. Sung uses straight line depreciation. During 2014, Sung had a net income of $24 , 000 [sales revenue = $150 , 000 , cost of goods sold ( F I FO ) = $85 , 000 , operating expenses = $41 , 000 ]. The goodwill was not impaired. On December 23, 2014, Sung declared and paid $8 , 000 cash dividend to its shareholders. Prepare the working paper entries (in journal entry format) for Pan Company and subsidiary for the year ended December 31, 2014. Hint: PBON .

The following information about Sung Company on January 1- 2014 was av.docx

GordonB0fPaigey

The condensed financial statements of Leeward Corporation for 2006 and 2005 are presented below. Leeward Corporation Leeward Corporation Balance Sheet Income Statement December 31, 2006 For the Year Ended December 31, 2006 Assets Revenues $2,500,000 Current assets Expenses Cash and temporary Cost of goods sold 1,080,000 investments $ 50,000 Selling and administrative Accounts receivable 70,000 expenses 495,000 Inventories 120,000 Interest expense 30,000 Total current assets 240,000 Total expenses 1,605,000 Property, plant, and Income before income taxes 895,000 equipment (net) 780,000 Income tax expense 268,500 Total assets $1,020,000 Net income $ 626,500 Liabilities and Stockholders' Equity Current liabilities $ 100,000 Long-term liabilities 300,000 Common stockholders' equity 620,000 Total liabilities and stockholders' equity $1,020,000 Leeward Corporation Leeward Corporation Balance Sheet Income Statement December 31, 2005 For the Year Ended December 31, 2005 Assets Revenues $2,500,000 Current assets Expenses Cash and temporary Cost of goods sold 1,750,000 investments $ 40,000 Selling and administrative Accounts receivable 90,000 expenses 500,000 Inventories 150,000 Interest expense 30,000 Total current assets 280,000 Total expenses 2,280,000 Property, plant, and Income before income taxes 220,000 equipment (net) 800,000 Income tax expense 66,000 Total assets $1,080,000 Net income $ 154,000 Liabilities and Stockholders' Equity Current liabilities $ 140,000 Long-term liabilities 320,000 Common stockholders' equity 620,000 Total liabilities and stockholders' equity $1,080,000 Instructions 1. Compute the following listed ratios for 2006. (a) Current ratio = . (b) Debt to total assets = . (d) Profit margin ratio = . (e) Return on common stockholders' equity = . (f) Return on assets = . 2. Perform horizontal analysis on both the balance sheet and income statement. Leeward Corporation Balance Sheet Horizontal Analysis 2006 2005 Change Percent Assets Cash and temporary investments $50,000 $40,000 Accounts receivable $70,000 $90,000 Inventories $120,000 $150,000 Total current assets $240,000 $280,000 Property, plant and equipment $780,000 $800,000 Total assets $1,020,000 $1,080,000 Liabilities & Stockholder’s Equity Current liabilities $100,000 $140,000 Long-term liabilities $300,000 $320,000 Common stockholder’s equity $620,000 $620,000 Total liabilities and stockholder’s equity $1,020,000 $1,080,000 Leeward Corporation Income Statement .

The condensed financial statements of Leeward Corporation for 2006 a.docx

rtodd643

Problem 3-2 (LO 2) Simple equity method adjustments, consolidated worksheet. On January 1, 2015, Paro Company purchases 80% of the common stock of Solar Company for $320,000. Solar has common stock, other paid-in capital in excess of par, and retained earnings of$50,000, $100,000, and $150,000, respectively. Net income and dividends for two years for Solar are as follows: 2015 2016 Net income $60,000 $90,000 Dividends 20,000 30,000 On January 1, 2015, the only undervalued tangible assets of Solar are inventory and the building. Inventory, for which FIFO is used, is worth $10,000 more than cost. The inventory is sold in 2015. The building, which is worth $30,000 more than book value, has a remaining life of10 years, and straight-line depreciation is used. The remaining excess of cost over book value is attributed to goodwill. Required 1. Using this information and the information in the following trial balances on December 31, 2016, prepare a value analysis and a determination and distribution of excess schedule: Paro Company Solar Company Inventory, December 31 100,000 50,000 Other Current Assets 136,000 180,000 Investment in Solar Company 400,000 Land 50,000 50,000 Buildingsand Equipment 350,000 320,000 Accumulated Depreciation (100,000) (60,000) Goodwill Other Intangibles 20,000 Current Liabilities (120,000) (40,000) Bonds Payable (100,000) Other Long-Term Liabilities (200,000) Common Stock—Paro Company (200,000) Other Paid-In Capital in Excess of Par—Paro Company (100,000) Retained Earnings—Paro Company (214,000) Common Stock—Solar Company (50,000) Other Paid-In Capital in Excess of Par—Solar Company (100,000) Retained Earnings—Solar Company (190,000) Net Sales (520,000) (450,000) Cost of Goods Sold 300,000 260,000 Operating Expenses 120,000 100,000 Subsidiary Income (72,000) Dividends Declared—Paro Company 50,000 Dividends Declared—Solar Company 30,000 Totals 0 0 2. Complete a worksheet for consolidated financial statements for 2016. Include columns for eliminations and adjustments, consolidated income, NCI, controlling retained earnings, and consolidated balance sheet. Problem 3-10 (LO3, 5) 100%, cost method worksheet, several adjustments, third year. Refer to the preceding information for Paulcraft’s acquisition of Switzer’s common stock. Assume that Paulcraft pays $480,000 for 100% of Switzer common stock. Paulcraft uses the cost method to account for its investment in Switzer. Paulcraft and Switzer have the following trial balances on December 31, 2017 as shown on page 191. Paulcraft Switzer Cash 100,000 110,000 Accounts Receivable 90,000 55,000 Inventory 120,000 86,000 Land 100,000 60,000 Investment in Switzer 480,000 Buildings 800,000 250,000 Accumulated Depreci.

Problem 3-2 (LO 2) Simple equity method adjustments, consolidated .docx

sleeperharwell

Hello Guys I will complete your assignments any of subjects for cheap Price with quality work Provide you complete solutions..with turnitin Report 0% Plagiarism Guarantee.. Unlimited Revision Free Of Cost 100% Live Support Cheap Price Grauntee High Quality Guarantee to Other 100% Passed Grauntee Before Deadline Delivery Guarantee Regards & Thanks Keith WhatsApp:+61-451059254,+44-7958580065 Email:cheaponlineassignmenthelp@gmail.com http://btechndassignment.cheapassignmenthelp.co.uk/ www.onlineassignmenthelp.com.au www.cheapassignmenthelp.co.uk www.freeassignmenthelp.acom

Acc706 accounting

Pradeep Kumar

Ans: Consolidated financial statements are the aggregated or combined figure of statements between a parent company and its subsidiaries. Consolidated balance sheet As on 31/12/2020 Assets P S Total Current assets: Cash 70,000 28,000 98,000 Accounts receivable 210,000 224,000 434,000 Inventory 252,000 140,000 392,000 532,000 392,000 924,000 Noncurrent assets: Land 140,000 -- 140,000 Equipment 7,000,000 3,780,000 10,780,000 Amortization, equipment (2,478,000) (1,736,000) (4,214,000) Investment in S 1,120,000 -- 1,120,000 5,782,000 2,044,000 7,826,000 Total assets 6,314,000 2,436,000 8,750,000 Liabilities and shareholders equity: Current liabilities: Accounts payable 630,000 280,000 910,000 Noncurrent liabilities: Loan payable 420,000 700,000 1,120,000 1,050,000 980,000 2,030,000 Shareholders equity: Share capital 1,680,000 420,000 2,100,000 Retained earnings 3,584,000 1,036,000 4,620,000 5,264,000 1,456,000 6,720,000 6,314,000 2,436,000 8,750,000 Consolidated income statement For the year ended 31/12/2020 Particulars P S Total Revenue: Sales 2,804,200 2,100,000 4,904,200 Royalties 210,000 -- 210,000 Dividends 100,800 -- 100,800 3,115,000 2,100,000 5,215,000 Expenses: Cost of sales 1,680,000 1,260,000 2,940,000 Other 784,000 575,400 1,359,400 2,464,000 1,835,400 4,299,400 Net income 651,000 264,600 915,600 Retained earnings statement For the year ended 31/12/2020 P S Total Opening retained earnings 3,353,000 897,400 4,250,400 Net income 651,000 264,600 915,600 Dividends declared (420,000) (126,000) (546,000) Closing retained earnings 3,584,000 1,036,000 4,620,000 Figures are added. P + S = Total. Assets P S Total Current assets: Cash 70,000 28,000 98,000 Accounts receivable 210,000 224,000 434,000 Inventory 252,000 140,000 392,000 532,000 392,000 924,000 Noncurrent assets: Land 140,000 -- 140,000 Equipment 7,000,000 3,780,000 10,780,000 Amortization, equipment (2,478,000) (1,736,000) (4,214,000) Investment in S 1,120,000 -- 1,120,000 5,782,000 2,044,000 7,826,000 Total assets 6,314,000 2,436,000 8,750,000 Liabilities and shareholders equity: Current liabilities: Accounts payable 630,000 280,000 910,000 Noncurrent liabilities: Loan payable 420,000 700,000 1,120,000 1,050,000 980,000 2,030,000 Shareholders equity: Share capital 1,680,000 420,000 2,100,000 Retained earnings 3,584,000 1,036,000 4,620,000 5,264,000 1,456,000 6,720,000 6,314,000 2,436,000 8,750,000 Solution Ans: Consolidated financial statements are the aggregated or combined figure of statements between a parent company and its subsidiaries. Consolidated balance sheet As on 31/12/2020 Assets P S Total Current assets: Cash 70,000 28,000 98,000 Accounts receivable 210,000 224,000 434,000 Inventory 252,000 140,000 392,000 532,000 392,000 924,000 Noncurrent assets: Land 140,000 -- 140,000 Equipment 7,000,000 3,780,000 10,780,000 Amortization, equipment (2,478,000) (1,736,000) (4,214,000) Investment in S 1,120,000 -- 1,120,000 5,782,000 2,044,000 7,826,000 Total assets 6,314,000 2,436,00.

AnsConsolidated financial statements are the aggregated or combin.pdf

angelfashions02

1 Calculation of amount of retained earnings as of July 1 : Cash $ 45,000 Add: Accounts Receivable $ 93,000 Add: Supplies $ 7,000 Add: Land $ 75,000 Total Assets $ 220,000 Less: Accounts Payable $ (40,000) Less: Common Stock $ (60,000) Retained earnings as of July 1 $ 120,000 2 Worksheet for calculation of Accounts Balances: Assets Liability Equity Cash Accounts Receivable Supplies Land Accounts Payable Common Stock Retained earnings July 1, 2016 Balance $ 45,000 $ 93,000 $ 7,000 $ 75,000 $ 40,000 $ 60,000 $ 120,000 A $ 35,000 $ 35,000 B $ (50,000) $ 50,000 C $ 32,125 $ 32,125 D $ (6,000) $ (6,000) E $ 2,500 $ 2,500 F $ (22,800) $ (22,800) G $ 84,750 $ 84,750 H $ 29,500 $ (29,500) I (7500+2500+1300+2700) $ (14,000) $ (14,000) J $ 88,000 $ (88,000) K $ (3,600) $ (3,600) L $ (12,000) $ (12,000) July 31, 2016 Balance $ 95,325 $ 89,750 $ 5,900 $ 125,000 $ 49,200 $ 95,000 $ 171,775 3 Income statement for the month ended July 31, 2016 Revenue: Dry cleaning revenue (32125+84750) $ 116,875 Expenses: Rent Expense $ 6,000 Dry cleaning expense $ 29,500 Wages expense $ 7,500 Truck expense $ 2,500 Utilities expense $ 1,300 Miscellaneous expense $ 2,700 Supplies Expense $ 3,600 $ 53,100 Net income $ 63,775 4 Retained earnings statement for the month ended July 31, 2016 Retained earnings as on July 1, 2016 $ 120,000 Add: Net income $ 63,775 Less: Dividend $ (12,000) Retained earnings as on July 31, 2016 $ 171,775 1 Calculation of amount of retained earnings as of July 1 : Cash $ 45,000 Add: Accounts Receivable $ 93,000 Add: Supplies $ 7,000 Add: Land $ 75,000 Total Assets $ 220,000 Less: Accounts Payable $ (40,000) Less: Common Stock $ (60,000) Retained earnings as of July 1 $ 120,000 2 Worksheet for calculation of Accounts Balances: Assets Liability Equity Cash Accounts Receivable Supplies Land Accounts Payable Common Stock Retained earnings July 1, 2016 Balance $ 45,000 $ 93,000 $ 7,000 $ 75,000 $ 40,000 $ 60,000 $ 120,000 A $ 35,000 $ 35,000 B $ (50,000) $ 50,000 C $ 32,125 $ 32,125 D $ (6,000) $ (6,000) E $ 2,500 $ 2,500 F $ (22,800) $ (22,800) G $ 84,750 $ 84,750 H $ 29,500 $ (29,500) I (7500+2500+1300+2700) $ (14,000) $ (14,000) J $ 88,000 $ (88,000) K $ (3,600) $ (3,600) L $ (12,000) $ (12,000) July 31, 2016 Balance $ 95,325 $ 89,750 $ 5,900 $ 125,000 $ 49,200 $ 95,000 $ 171,775 3 Income statement for the month ended July 31, 2016 Revenue: Dry cleaning revenue (32125+84750) $ 116,875 Expenses: Rent Expense $ 6,000 Dry cleaning expense $ 29,500 Wages expense $ 7,500 Truck expense $ 2,500 Utilities expense $ 1,300 Miscellaneous expense $ 2,700 Supplies Expense $ 3,600 $ 53,100 Net income $ 63,775 4 Retained earnings statement for the month ended July 31, 2016 Retained earnings as on July 1, 2016 $ 120,000 Add: Net income $ 63,775 Less: Dividend $ (12,000) Retained earnings as on July 31, 2016 $ 171,775 Solution 1 Calculation of amount of retained earnings as of July 1 : Cash $ 45,000 Add: Accounts Receivable $ 93,000 Add: Supplies $ 7,000 Add: Land $ 7.

1Calculation of amount of retained earnings as of July 1 Cash.pdf

reyazansari001

Question 3: (24 markS) Westcock Shipbuilding Ltd. has a December 31 year end. On January 1, 2017, the company had the following shareholder\'s equity accounts Preferred shares, $4 non- cumulative, unlimited number authorized, 7,000 issued Common shares, unlimited number authorized, 150,000 issued Retained earnings Accumulated Other Comprehensive Income $850,000 2,250,000 1,750,000 22,000 Westcock Shipbuilding Ltd. had the following transactions during 2017: Issued 700 preferred shares at $95 per share. Reacquired 5,000 common shares at $16 a share. Announced a 3-for-1 stock split of the common shares. Immediately before the split, the share price was $13 a share. Declared the annual dividend on preferred shares for the shareholders of record on Sep 30, payable on Oct 15 Declared a common share dividend of $0.50 a share for all shareholders of record Nov 30. The dividend is payable on Dec 15 Jan 31 Mar 2 Jun 28 Sep 15 Oct 31 The company reported a profit of $450,000 and other comprehensive income of $15,000 for 2017. Required: a) Prepare journal entries to record all of the transactions b) Prepare the Statement of Changes in Shareholder\'s Equity (HINTS: (a) Use format similar to that shown in Illustration 14-10 on page 747 in the textbook; (b) you will need a column for Preferred shares instead of Contributed Surplus) Solution Journal Entries Date Particulars Debit Credit 31-Jan Cash $66,500.00 Preferred Shares $66,500.00 Preferred Shares being issued 2-Mar Cash $80,000.00 Treasury stock $80,000.00 Common stocks being repurchased 28-Jun No entry required, since stocks do not have any par value 15-Sep Dividends - Preferred $30,800.00 Dividends Payable - Preferred $30,800.00 Preferred dividends at $4 per dividend being declared 30-Sep Dividends Payable - Preferred $30,800.00 Cash $30,800.00 Preferred dividends declared being paid 31-Oct Dividends - Common $217,500.00 Dividends Payable - Common $217,500.00 Common stock dividends being declared 15-Dec Dividends Payable - Common $217,500.00 Cash $217,500.00 Common dividends declared being paid Dividends payable – Preferred = (7,000 + 700) x $4 = $30,800 Dividends payable – Common = (150,000 – 5,000) x $0.50 = $217,500 Stocks repurchased at $16 = 5,000 x $16 = $80,000 Statement of Changes in Shareholders\' Equity Year ended on December 31, 2017 Preferred Share Capital Common Share Capital Treasury Shares Retained Earnings Accumulated Other Comprehensive Income Total Equity Balance at January 1, 2017 $850,000 $2,250,000 $0 $1,750,000 $22,000 $4,872,000 Profit for the year $0 $0 $0 $450,000 $0 $450,000 Other Comprehensive Income $0 $0 $0 $0 $15,000 $15,000 Dividends - Preferred $0 $0 $0 $30,800 $0 $30,800 Dividends - Common $0 $0 $0 $217,500 $0 $217,500 Purchase of Own Shares $0 $0 $80,000 ($80,000) $0 $0 Balance at December 31, 2017 $850,000 $2,250,000 $80,000 $2,368,300 $37,000 $5,585,300 Journal Entries Date Particulars Debit Credit 31-Jan Cash $66,500.00 Preferred Shares $66,500.00 Preferred Shar.

Question 3 (24 markS) Westcock Shipbuilding Ltd. has a December 31 y.pdf

santanadenisesarin13

Cost Method Journal Entry Date Account Head and Entry Debit .pdf

anjaniar7gallery

Financial Presentation July 2014

Georgetown Independent School District

Heidebrecht Design acquired 30% of the outstanding common stock of Quayle Company on January 1, 2014, by paying $729,000 for the 40,500 shares. Quayle declared and paid $0.50 per share cash dividends on March 15, June 15, September 15, and December 15, 2014. Quayle reported net income of $356,300 for the year. At December 31, 2014, the market price of Quayle common stock was $25 per share. Indicate the balance sheet and income statement account balances at December 31, 2014, under each method of accounting Stock investment Unrealized gain Solution Unrealized gain = 40500 * 25 - 729000= $283500 Dividend revenue = 0.50 x 4 x 40500 = $91000 Revenue from stock investments Balance Sheet : $729000 + 30/100 * $356,300 - $91000 (reduction in cash balance due to payment of dividend) = $744890 Income Statement: 30/100 * 356300 + 91000 = $197890 .

Heidebrecht Design acquired 30- of the outstanding common stock of Qua.docx

rtodd588

Robert Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2014, the following balances related to this plan: As a result of the operation of the plan during 2014, the actuary provided the following additional data at December 31, 2014: Instructions: (a) Compute pension expense for Robert Corp. for the year 2014 by preparing a pension worksheet that shows the journal entry for pension expense. (b) Indicate the pension amounts reported in the financial statements.Plan assets (market related value$170,000Projected benefit obligation$340,000Pension asset/liability$170,000 cr.Prior service cost$100,000OCI-Loss$39,000 Solution Interest cost = Beginning PBO × Interest rate = $340,000 × 7% = $23,800 Service cost = $45,000 Expected returns on pension fund = Beginning plan assets × Expected rate = $170,000 × 8% = $13,600 Net pension expense = Interest cost + Service cost – Expected returns on pension fund = $23,800 + $45,000 - $13,600 = $55,200 a. Journal Date Account titles P.ref Debit Credit 31/12/14 Pension expense $55,200 Pension related asset/liability $55,200 To record 2014 pension expense b. Pension expense $55,200 should be reported in the income statement of 31/12/2014. Balance sheet items would as below: Projected benefit obligation (31/12/2014) = Beginning PBO + Service cost + Interest cost – Retirement benefits paid = $340,000 + $45,000 + $23,800 - $51,000 = $357,800 Fair value (31/12/2014) = Beginning fair value + Employer contribution – Retirement benefits paid + Actual returns = $170,000 + $85,000 - $51,000 + $27,000 = $231,000 Date Account titles P.ref Debit Credit 31/12/14 Pension expense $55,200 Pension related asset/liability $55,200 To record 2014 pension expense.

Robert Corp. sponsors a defined benefit pension plan for its employe.pdf

ALASEEMKOTA

Acquisition of Saban Ltd On 1 st January 2010, Habiki Ltd acquired 90% of the share capital (ex div) of Saban Ltd for $14,500,000. At this date, the accounts of Saban Ltd included the following balances: Share capital (9,000,000 shares) $9,000,000 General reserve 2,100,000 Retained profits 1,050,000 Dividends payable 900,000 All of the identifiable net assets of Saban Ltd were recorded at fair value except for Patents which had a fair value of $1,180,000 above the carrying amount. Adjustments for the differences are made on consolidation and tax-effect entries are needed.On the 15 June 2011, Saban Ltd paid a cash dividend of $450,000 (appropriated from pre-acquisition profits). This amount was recognised as revenue by Habiki Ltd. The Financial Controller of Habiki Ltd felt that the dividend had impaired the value of the company’s investment in Saban Ltd and subsequently records an impairment of the Investment in SabanAccount for the applicable amounts received as a dividend. (a) On 1 st October 2014, Saban sold inventory to Habiki Ltd for $1,350,000, at a mark-up of 20%. At 31stDecember 2014, $778,000 of this inventory was still on hand (b) On 28 th November 2013, Habiki Ltd sold some inventory to Saban Ltd for $980,000, at a profit before tax of $530,000. This was still on hand in Saban Ltd at 31 st December 2013, but was all sold by 31 st December 2014. (c) On 1 st July 2014, Saban Ltd sold an item of equipment to HabikiLtd for $2,680,000 at a before tax loss of $985,000. The equipment has a useful life of 5 years and is depreciated using the straight-line method by both companies. (d) During the year Habiki Ltd paid $165,000 of Staff Training Fees to Saban Ltd. This amount is disclosed under General Administrative Expenses by Habiki Ltd. (e) Habiki Ltd extended a loan of $700,000 to Saban Ltd. This loan was issued on the 1 st March 2012 payable over 10 years, with an interest rate on the loan of 5.5% pa. Interest is paid on the 1 st April and 1 st October every year. (f) A goodwill impairment test in December 2014 revealed the need to impair goodwill by $221,600. No other impairment of goodwill has been recorded. For consolidation purposes the partial goodwill method is used. (g) All dividends are recognised before receipt of cash. (h) The corporate income tax rate is 30% and the companies in the group have financial years from 1 st January to 31 st December. REQUIRED: Consolidate Habiki Ltd and Saban Ltd: (a) Prepare the consolidation journal entries, with narrations, and the consolidated worksheet (using Excel) to consolidate HABIKI Ltd and SABAN Ltd for the year ended 31 st December 2014. (b) Produce the completed Consolidated Financial Reports (Statement of Comprehensive Income and Statement of Financial Position) for the year ended 31stDecember 2014. You are advised to comply with AASB standards and the requirements in the Australian Corporations Legislation when determining the structure and presentation r.

Acquisition of Saban Ltd On 1stJanuary 2010, Habiki Ltd acquir.docx

stelzriedemarla

Link Ltd acquired 80% of the shares of Connect Ltd on 1 July 2012 for $115 000. At this date the equity of Connect Ltd consisted of: Share capital (100 000 shares) General reserve Retained earnings $ 80 000 2 400 29 600 All the identifiable assets and liabilities of Connect Ltd were recorded at amounts equal to their fair values except for: Carrying amount Fair value Plant (cost $65 000) $52 000 $56 000 Land 40 000 45 000 Inventory 25 000 28 000 The plant was expected to have a further useful life of 10 years. The land was sold on 1 January 2015. The inventory was all sold by 30 June 2013. Link Ltd uses the full goodwill method. The fair value of the non-controlling interest (NCI) at 1 July 2012 was $28 000. At 1 July 2012, Connect Ltd had unrecorded brands that had a fair value of $18 000. These had an indefinite life. Additional information · Connect Ltd had inventory on hand at 30 June 2014 that included inventory at cost of $8000 that had been sold to it by Link Ltd. This inventory had cost Link Ltd $6000. It was all sold by Connect Ltd by 30 June 2015. · During the 2014-15 year, Connect Ltd sold inventory to Link Ltd for $48 000. At 30 June 2015, Link Ltd still had some of this inventory on hand. This inventory had been sold to it by Connect Ltd at a profit of $4000. · On 1 January 2014, Connect Ltd sold plant to Link Ltd for $16 000. This had a carrying amount in Connect Ltd at time of sale of $12 000. Plant of this class is depreciated at 20% per annum. · Management and consultation fees derived by Link Ltd are all from Connect Ltd and represent charges for administration $1760 and technical services for the manufacturing section $2240. · All debentures issued by Connect Ltd are held by Link Ltd. · Other components of equity relate to movements in the fair values of financial assets held by the entities. Gains and losses on these financial assets are recognised in other comprehensive income. The balance of the other components of equity account at 1 July 2014 was $8000 (Link Ltd) and $6400 (Connect Ltd). · The tax rate is 30% · Financial information at 30 June 2015 of Link Ltd and its subsidiary company, Connect Ltd, is shown below. Link Ltd Connect Ltd Sales revenue $252 800 $176 000 Debenture interest 4 000 — Management and consultation fees 4 000 — Dividends 9 600 — Total revenue 270 400 176 000 Cost of sales (104 000) (68 000) Manufacturing expenses (82 000) (53 000) Depreciation on plant (12 000) (12 000) Administrative expenses (12 000) (6 400) Financial expenses (8 800) (4 000) Other expenses (11 200) (9 600) Total expenses 230 000 153 000 Profit from trading 40 400 23 000 Gains on sale of non-current assets 10 000 5 000 Profit before income tax 50 400 28 000 Income tax expense (20 000) (13 600) Profit for the year 30 400 14 400 Retained earnings at 1 July 2014 40 000 36 000 70 400 50 400 Dividend paid (8 000) (8 000) Dividend declared (8 000) (4 000) (16 000) (12 000) Retained earnings at 30 Ju ...

Link Ltd acquired 80 of the shares of Connect Ltd on 1 July.docx

SHIVA101531

A Journal entries for transactions Amount ($) Date Particulars Lf/No Dr Cr Narration Feb 1, 2014 Bank A/c Dr 30,000 Issued 5,000 shares of common stock for $30,000 To Common Stock A/c 30,000 Mar 20, 2014 Treasury Stock A/c Dr 4,000 Purchased 1,000 additional shares of common treasury stock at $7 per share. Additional Paid in Capital A/c Dr 3,000 To Bank A/c 7,000 Mar 20, 2014 Common Stock A/c Dr 4,000 Balance adjusted in common stock A/c To Treasury Stock A/c 4,000 Oct 1, 2014 Dividend A/c Dr 21,000 declared a 7% cash dividend on preferred stock, payable November 1 = 300000*7% To Dividend Payable A/c 21,000 Nov 1, 2014 Dividend Payable A/c Dr 21,000 paid the dividend declared on October 1 To Cash A/c 21,000 Dec 1, 2014 Dividend A/c Dr 14,500 declared a $0.50 per share cash dividend to common stockholders of record on December 15, payable December 31, 2014. = (25000(100000/4)+5000-1000) * 0.50 $ To Dividend Payable A/c 14,500 Dec 31, 2014 Dividend Payable A/c Dr 14,500 Dividend Paid To Cash A/c 14,500 Dec 31, 2014 Retained Earnings A/c Dr 35,500 entries to close net income and dividends to retained earnings To Dividend Payable A/c 35,500 B Stockholders equity A/c Dr Cr Date Particlulars Amount Date Particlulars Amount 20.03.2014 To Treasury Stock A/c 4,000 1.01.2014 By Bal c/d 1,00,000 31.12.2014 To Bal c/fwd 1,26,000 01.02.2014 By Bank A/c 30,000 Total 1,30,000 Total 1,30,000 C Balance sheet extract as on Dec 31, 2014 StockHolders Equity Amount Common Stock 1,26,000 Preferred Stock 3,00,000 Additional Paid in Capital for Preferred stock 15,000 Additional Paid in Capital for Common stock 4,77,000 Retained Earnings 2,44,500 Total 11,62,500 D Dividend Percentage of earnings - Payout Ratio A Dividend on common stock 14,500 B Retained earnings 2,80,000 C Payout Ratio (A/B)*100 5.18 Earnings per share - Earnings available to equity shareholders divided by total no.of shares A Retained earnings 2,80,000 B Less Dividend on preferred stock -21,000 C Earnings available to equity shareholders 2,59,000 D Total no.of shares ( 100000/4 = 25000+5000-1000 ) 29,000 E EPS (C/D ) 8.93 F Dividend on common stock 14,500 G Total Value of common stock 1,26,000 H Return on Common Stock ( F/G) 11.51% Solution A Journal entries for transactions Amount ($) Date Particulars Lf/No Dr Cr Narration Feb 1, 2014 Bank A/c Dr 30,000 Issued 5,000 shares of common stock for $30,000 To Common Stock A/c 30,000 Mar 20, 2014 Treasury Stock A/c Dr 4,000 Purchased 1,000 additional shares of common treasury stock at $7 per share. Additional Paid in Capital A/c Dr 3,000 To Bank A/c 7,000 Mar 20, 2014 Common Stock A/c Dr 4,000 Balance adjusted in common stock A/c To Treasury Stock A/c 4,000 Oct 1, 2014 Dividend A/c Dr 21,000 declared a 7% cash dividend on preferred stock, payable November 1 = 300000*7% To Dividend Payable A/c 21,000 Nov 1, 2014 Dividend Payable A/c Dr 21,000 paid the dividend declared on October 1 To Cash A/c 21,000 Dec 1, 2014 Dividend A/c Dr 14,500 declared a $0.50 per.

A Journal entries for transactions Amount ($) Date Particu.pdf

annaelctronics

The condensed financial statements of Leeward Corporation for .docx

ssuser454af01

Kempe Corporation\'s capital structure consists of 50,000 shares of common stock. The December 31, 2014 account balances are listed below (except as noted). All adjusting entries have been made except for the accrual of taxes (20% tax rate). Solution Notes to the accounts:Balance sheetas at december 31, 2014ParticularsAmount ($)Equity and LiabilitiesShareholder\'s fund:Share Capital 1,80,000Reserve & Surplus:Retained EarningsOpening 2,86,000Add:During the year 2,40,080Less:Dividend Declared25,0005,01,080Proposed dividend25,000Non Current Liabilities:Notes Payable 1,75,000Current LiabilitiesTrade Payables 79,000Other Current Liabilities:Interest Payable 1,500Office Supplies 50,000Total10,11,580AssetsNon Current AssetsFixed AssetsTangible:Land 2,68,000Machinery and equipments4,95,000Less: Accumulated Depreciation1,57,0003,38,000Intangible:Patent 75,000Current AssetsInventories 1,14,000Trade Receivable 98,000Less: Allownces for doubtfule debts 5,700 92,300Cash and cash Equivelents 65,000Other current assets:Unearned Service Revenue 5,800Suspense 53,480Total 10,11,580.

Kempe Corporations capital structure consists of 50,000 shares of c.pdf

pooranmalsaini1968

At the end of the 2014 annual reporting period, Barnard Corporation\'s balance sheet showed the following: During 2015 the following selected transactions (summarized) wore completed: Sold and issued 1.600 shares of common stock at $29 cash per share (at year-end). Determined net income. $44,000. Declared and paid a cash dividend of $1 per share on the beginning shares outstanding Prepare a statement of stockholders\' equity for the year ended December 31. 2015. Solution BARNARD CORPORATION Statement of Stockholder\'s Equity Common Stock Paid in Capital Retained Earnings Total Shareholder\'s Equity Shares Amount Balance as of December 31, 2014 7000 $ 105,000 $ 17,000 $ 44,000 $ 166,000 Add: Net Income $ 44,000 $ 44,000 Less: Dividends declared $ 7,000 $ 7,000 Stock Issued 1600 24000 22400 $ 46,400 (1600*15) (1600*29)-24000 Balance as of December 31, 2015 8600 129000 39400 $ 81,000 $ 249,400 BARNARD CORPORATION Statement of Stockholder\'s Equity Common Stock Paid in Capital Retained Earnings Total Shareholder\'s Equity Shares Amount Balance as of December 31, 2014 7000 $ 105,000 $ 17,000 $ 44,000 $ 166,000 Add: Net Income $ 44,000 $ 44,000 Less: Dividends declared $ 7,000 $ 7,000 Stock Issued 1600 24000 22400 $ 46,400 (1600*15) (1600*29)-24000 Balance as of December 31, 2015 8600 129000 39400 $ 81,000 $ 249,400.

At the end of the 2014 annual reporting period, Barnard Corporation.pdf

aimeetradesolutions

Determine the missing amounts. (Hint For example, to solve for (a), .pdf

amrishinda

Similar to 1) Platt Corporation paid $87-500 for a 70- interest in Suve Corporati.pdf (20)