1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
frosja888 [35]
3 years ago
5

On June 10, 20X8, Tower Corporation acquired 100 percent of Brown Company's common stock. Summarized balance sheet data for the

two companies immediately after the stock acquisition are as follows:
Tower Corp. Brown Company
Item Book Value Fair Value
Cash $ 34,000 $ 24,000 $ 24,000
Accounts Receivable 48,000 28,000 28,000
Inventory 98,000 24,000 29,000
Buildings & Equipment (net) 136,000 65,000 85,000
Investment in Brown Stock 175,000
Total $ 491,000 $ 141,000 $ 66,000
Accounts Payable $ 24,000 $ 4,000 $ 4,000
Bonds Payable 139,000 12,000 12,000
Common Stock 41,000 20,000
Retained Earnings 287,000 105,000
Total $ 491,000 $ 141,000 $ 16,000
Required:
a. Prepare the consolidating entries required to prepare a consolidated balance sheet immediately after the acquisition of Brown Company shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Business
1 answer:
Blababa [14]3 years ago
3 0

Answer:

The answer is attached below

Explanation:

You might be interested in
Beginning Inventory Ending Inventory Finished goods (units) 24,000 34,000 Raw material (grams) 54,000 44,000 Each unit of finish
Ghella [55]

Answer:

Production= 200,000

Explanation:

Giving the following information:

Beginning Inventory Ending Inventory

Finished goods (units) 24,000 34,000

The company plans to sell 190,000 units during the year.

<u>To calculate the production required, we need to use the following formula:</u>

Production= sales + desired ending inventory - beginning inventory

Production= 190,000 + 34,000 - 24,000

Production= 200,000

4 0
2 years ago
The Nantell Corporation just purchased an expensive piece of equipment. Assume that the firm planned to depreciate the equipment
gtnhenbr [62]

Answer:

D

Explanation:

Nantell's operating income (EBIT) will increase., because now the company will record lower depreciation expense in the income statement due to increase in the life from 5 to 7 taken for the depreciation purposes. So decline in depreciation will result in higher EBIT.

a. is wrong as lower depreciation means higher net income.

b. is wrong as tax liability will not get impacted as tax will follows old method of depreciation.

c. is incorrect as depreciation is non cash expense thus does not impact cash position and tax has already be on the earlier method.

e. is incorrect as increase in EBIT will result in higher taxable income.

hence option D is the only correct option

4 0
3 years ago
g The Village of Lake George decided to establish an internal service fund to account for the operations of a Print Shop. The Pr
Natali5045456 [20]

Answer:

Check the explanation

Explanation:

 General Journal    

     

Ref.  Account Title & explanation          Debit              Credit

a)                Cash                               $1,200,000    

                      Contribution                                             $400,000

                  Long term liability                                    $800,000

            (To record receipt of fund )      

b)              Equipment                        $890,000    

                             Cash                                             $890,000

              (To record purchase of equipment)      

c)                Supplies                              $120,000    

                      Accounts payable                               $30,000

                             Cash                                               $90,000

           (To record purchase of supplies)      

d)                  Cash                                   $350,000

                     Accounts receivable                  $50,000    

                             Sales                                             $400,000

                  (To record sales )      

e)        Supplies expenses                     $73,000    

                             Supplies                                               $73,000

              (To record supllies expenses)      

f)         Salaries and wages expenses      $19,000    

                                 Cash                                                $19,000

          (To record salaries and wages expenses)    

 Utilities expenses                                              $3,000    

 Cash                                                                                $3,000    

 (To record utilities expenses)      

g)  Depreciation expenses                        $80,000    

 Accumulated depreciation-Equipment                          $80,000

     (To record depreciation expenses)      

h)  Long term liability                               $200,000    

                    Cash                                                    $200,000    

 (To record payment of instalment of advance)    

     

Ref.  CASH ACCOUNT  Debit  Credit    

a)  Contribution  $400,000    

a)  Long term liabilities  $800,000    

b)  Equipment   $890,000    

c)  Supplies   $90,000    

d)  Sales  $350,000    

f)  Salaries & wages expenses   $19,000    

f)  Utilities expenses   $3,000    

h)  Long term liabilities   $200,000    

 Balance   $348,000    

 TOTAL  $1,550,000  $1,550,000    

 Closing balance brought forward  $348,000    

     

 TRIAL BALANCE      

 Account  Debit  Credit    

 Cash  $348,000    

 Contribution   $400,000    

 Long term liabilities   $600,000    

 Equipment  $890,000    

 Supples  $        47,000   (120000-73000)  

 Accounts payable   $30,000    

 Accounts receivable  $50,000    

 Sales   $400,000    

 Supplies expenses  $73,000    

 Salaries and wages expenses  $19,000    

 Utilities expenses  $3,000    

 Depreciation expenses  $80,000    

 Accumulated depreciation-equipment   $80,000    

 TOTAL  $1,510,000  $1,510,000    

     

 INCOME STATEMENT      

 Contribution   $400,000    

 Sales   $400,000    

 Total income   $800,000    

 Expenses:      

 Supplies expenses  $73,000    

 Salaries and wages expenses  $19,000    

 Utilities expenses  $3,000    

 Depreciation expenses  $80,000    

 Total expenses   $175,000    

 Net Income   $625,000    

     

 BALANCE SHEET      

 ASSETS:      

 Cash  $348,000    

 Supples  $        47,000    

 Accounts receivable  $50,000    

 Equipment  $890,000    

 Accumulated depreciation  ($80,000)    

 Total assets  $1,255,000    

 Liabilities:      

 Accounts payable  $30,000    

 Long term liabilities  $600,000    

 Net assets  $625,000    

 Total Liabilities & net assets  $1,255,000  

3 0
3 years ago
ABC Corporation adopted the dollar-value LIFO method of inventory valuation on December 31, 2019. Its inventory at that date was
Lana71 [14]

Answer:

$1,209,100

Explanation:

The computation of the cost of the ending inventory as on Dec 31,2021 is shown below:

= Inventory as on Dec 31,2019 + {(Inventory as on Dec 31,2021 ÷ 2021 price index × 2019 price index) - Inventory as on Dec 31,2019} × 2021 price index ÷ 2019 price index

= $1,000,000 + {($1,439,100 ÷ 1.23 × 1) - $1,000,000} × 1.23 ÷ 1

= $1,000,000 + ($1,170,000 - $1,000,000) × 1.23

= $1,000,000 + $209,100

= $1,209,100

4 0
3 years ago
Review the following statements and determine which is (are) correct regarding an adjusted trial balance and how it is used In p
spayn [35]

Answer:

The Correct Statements regarding an adjusted trial balance and its use in preparing financial statements are:

1. The adjusted trial balance includes all accounts and balances appearing in financial statements.

3. Financial statements are easier to prepare using the adjusted trial balance than the general ledger.

5. The ending Retained Earnings account balance on the balance sheet is transferred from the statement of retained earnings.

6. The income statement is the first financial statement prepared after preparing the adjusted trial balance.

Explanation:

a) The above answers leave the following incorrect statements about the adjusted trial balance:

2. The ending Retained Earnings account balance on the balance sheet is taken directly from the adjusted trial balance.

4. The balance sheet is the first financial statement prepared.

b) In conclusion, the adjusted trial balance, which lists the general ledger account balances, is compiled after considering period-end adjustment entries, in line with the accrual concept and the matching principles of generally accepted accounting principles.

4 0
3 years ago
Other questions:
  • New cola alternatives (Mecca Cola, Muslim Up, Arab Cola, and ColaTurka) sprang up after the military conflicts in the Middle Eas
    15·1 answer
  • A Japanese steel firm sells steel in the United States and in Japan. Since the United States buys steel from a number of differe
    6·1 answer
  • What is one advantage of starting to invest as early as possible?
    5·1 answer
  • An on-premises workload consists of a single server with an Apache instance and a MySQL database. The Solutions Architect plans
    6·1 answer
  • Carby Hardware has an outstanding issue of perpetual preferred stock with an annual dividend of $7.50 per share. If the required
    14·1 answer
  • Consider the following production function: q = 7LK + 5L^2 - (1/3) L^3. Given the following expressions for the marginal product
    12·1 answer
  • A contact center manager is looking for ways to overall cost per case.
    11·1 answer
  • Tyreek pitches four investors. They agree to each invest $25,000 and value Tyreek's company at 200,000. How much of the company
    10·2 answers
  • It might be a good idea to expand or upgrade a firm's human capital base during a ______, because unemployment is high and there
    5·1 answer
  • Given a constant rate of growth of real gdp, what would cause a fall in real gdp per capita?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!