Why did credit unions survive the last financial crisis better than banks?

Chapman Company obtains 100 percent of Abernethy Company’s stock on January 1, 2020. As of that date, Abernethy has the followin

kobusy [5.1K]

The consolidation worksheet entries for December 31, 2020, and December 31, 2021 is: Debit Common Stock -Abernethy $250000; Debit Additional paid-n capital – Abernethy $50,000; Debit Retained earnings $431,110; Credit Investment in Abernethy $731,110.

<h3> Consolidation worksheet entries </h3>

December 31, 2020

Entry S

Debit Common Stock -Abernethy $250000

Debit Additional paid-n capital – Abernethy $50,000

Debit Retained earnings $431,110

($731,110-$250,000-$50,000)

Credit Investment in Abernethy $731,110

(Elimination entry for Abernethy common stock)

Entry A

Debit Goodwill $107,510

Credit Investment in Abernethy $107,510

($731,110-$250,000+$323,600+$50,000)

(To recognize excess acquisition cost as goodwill)

Entry I

Debit Equity in Earnings of Subsidiary $129,000

Credit Investment in Abernethy $129,000

(Elimination entry for inter-company income for 2020)

Entry D

Debit Investment in Abernethy $16,000

Credit Dividends paid $16,000

(Elimination of inter-company dividend payments)

Entry E

No Journal Entry Required

(Unamortized goodwill under the partial equity method)

Entry C

No Journal entry required

(Goodwill unamortized)

December 31, 2021

Entry S

Debit Common Stock – Abernethy $250,000

Debit Additional-Paid-in Capital –Abernethy $50,000

Debit Retained Earnings –Abernethy $431,110

($731,110-$250,000-$50,000)

Credit Investment in Abernethy $731,110

(Elimination entry of beginning stockholder’s equity balances of Subsidiary)

Entry A

Debit Goodwill $145,000

Credit Investment in Abernethy $145,000

(To record goodwill balance)

Entry I

Debit Equity in Earnings in Subsidiary $176,000

Credit Investment in Abernethy $176,000

(Elimination of inter-company accrual for the year 2021)

Entry D

Debit Investment in Abernethy $38,000

Credit Dividends Paid $38,000

(Elimination of inter-company dividend payments)

Entry E

No journal entry is required

Therefore the entries is: Debit Common Stock -Abernethy $250000; Debit Additional paid-n capital – Abernethy $50,000; Debit Retained earnings $431,110; Credit Investment in Abernethy $731,110.

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4 0

2 years ago

Vaughn Manufacturing began the year with retained earnings of $114000. During 2022, the company issued $84500 of common stock fo

il63 [147K]

The net income for the year 2022 is: c. $88,000.

<h3>Net income for the year 2022</h3>

Using this formula

Net income=Revenues - Expenses

Let plug in the formula

Net income=$735,000-$647,000

Net income=$88,000

Therefore the correct option is c.

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7 0

1 year ago

Suppose your firm receives a million order on the last day of the year. You fill the order with million worth of inventory. The

s344n2d4d5 [400]

Answer:

a. Revenues - These will increase by $5 million to represent the entire value of the order.

b. Earnings. - Increase by $3 million

Earnings in this case are revenue less the cost of inventory which will be;

= 5 - 2

= $3 million

c. Receivables - Increase by $4 million

The customer paid $1 million upfront which means that they still owe $4 million out of the $5 million. This will go to the receivables account to show that the customer owes the business.

5 0

3 years ago

With relevant examples discuss intangible business property that is protected by law and which an entrepreneur should consider w

ipn [44]

Answer:

Explanation:

Intangible property are useful resources, they are asset that are not physical but they produce much economic benefits to organization , entrepreneur.some of this asset are Goodwill, brand recognition, as well as intellectual property.

Some of these intangible asset are intellectual property and are protected by law from stealing away by those that are not authorized to it.

Examples of intangible business property that is protected by law are:

✓patent

✓copyright

✓ franchises

✓trade mark

✓Goodwill

✓tradenames

✓ trade secret

1)Patent is one of the intangible asset granted by government and protected to an inventor who is entrepreneur that exclude others from selling as well as using the invention for particular period of time. If an entrepreneur comes up with an invention it will be protected for him/ her. it can be categorized as utility, design, and plant. Example of invention that falls under utility is microwave oven. Other invention are light bulb, printing press.

2) copyright is another intangible property, in which the original works of authorship of an entrepreneur is protected, dramatic, musical work as well as computer software, and architecture of an entrepreneur is protected, this will help the entrepreneur to enjoy the benefits of his/her labor and to grow fast in term of finance.

3)trademark is another intangible property that is protected by law which includes design, expresion, sign that identifies the product of a company from another, when an entrepreneur is starting a business , trademark is important because his/her product will be easier to identify by consumer and this helps business to grow faster. Example is the logo that Apple( apple shape with a bite) uses as trademark on all their products, swoosh logo that Nike uses on their products

4)trade secrets is an intangible property as well as intellectual property that is been protected by law it contains processes, design, information with inherent economic values that are not generally known by everyone, this is important to enterprenurer because trade secret helps the individual with the secret to sustain his/her business without been hijacked. Example of trade secret is the

secret formula for Coca-Cola which other soft drinks producer doesn't know.

5 0

2 years ago

Boise Timber Co. computes its break-even point strictly on the basis of cash expenditures related to fixed costs. Its total fixe

JulsSmile [24]

Answer:

285,000 units

Explanation:

The computation of the cash break-even point of sales units is shown below:

Cash break-even point = (Fixed cost - depreciation) ÷ (contribution margin per unit)

where,

Fixed cost = $7,600,000

Depreciation = $7,600,000 × 0.25% = $1,900,000

And, the contribution margin per unit is $20

So, the cash break-even point of sales units is

= ($7,600,000 - $1,900,000) ÷ ($20)

= 285,000 units

8 0

3 years ago