Fortuna Company issued 70,000 shares of $1 par stock, with a fair value of $5 per share, for 80% of the outstanding shares of Acappella Company. The firms had the following separate balance sheets prior to the acquisition:
Assets Fortuna Acappella
Current assets $2,100,000 $ 960,000
Property, plant, and equipment (net) 4,600,000 1,300,000
Goodwill -- 240,000
Total assets $6,700,000 $2,500,000
Liabilities and Stockholders' Equity
Liabilities $3,000,000 $ 800,000
Common stock ($1 par) 800,000
Common stock ($5 par) 200,000
Paid-in capital in excess of par 2,200,000 300,000
Retained earnings 700,000 1,200,000
Total liabilities and equity $6,700,000 $2,500,000
Book values equal fair values for the assets and liabilities of Acappella Company, except for the property, plant, and equipment, which has a fair value of $1,400,000. Compute goodwill or gain recognized in the consolidated statements .
Book values equal fair values for the assets and liabilities of Acappella Company, except for the property, plant, and equipment, which have a fair value of $1,600,000.Required:
a. What is the Goodwill/Gain associated with the acquisition:
b. What is the Non-Controlling Interest recorded in the consolidated balance sheet
c. What is the balance of the assets and liabilities side of the consolidated balance sheet after the acquisition:
d.Record the two elimination entries associated with the acquisition of the company

Answer:

Part 1

$1,730,000 (Gain)

Part 2

a. $1,890,000 (Gain)

b. $560,000

c. Consolidated Assets = $9,850,000 and Consolidated Liabilities = $3,800,000

d.  Journals

Journal 1

Property Plant and Equipment $300,000 (debit)

Revaluation Reserve $300,000 (credit)

Revaluation of Acappella`s Property Plant and Equipment item

Journal 2

Common Stock $1,300,000 (debit)

Retained Earnings $1,200,000 (debit)

Revaluation Reserve $100,000 (debit)

Investment in Subsidiary $350,000 (credit)

Non-Controlling Interest $560,000 (credit)

Gain on Bargain Purchase $1,890,000 (credit)

Main Elimination Journal

Explanation:

Goodwill is the excess of Purchase Consideration over the Net Assets Acquired.

Purchase Consideration  (70,000 shares × $5) = $350,000

Part 1

Calculation of Net Assets Acquired

Retained Earnings                                             $1,200,000

Common Stock                                                  $1,300,000

Revaluation                                                           $100,000

Total Net Assets Acquired                               $2,600,000

Therefore,

Net Assets Attributable to Fortuna Company = $2,600,000 × 80%

                                                                            = $ 2,080,000

Purchase Consideration $350,000 < Net Assets Acquired ($ 2,080,000), therefore we have a gain situation of $1,730,000

Part 2

2a.

Calculation of Net Assets Acquired

Retained Earnings                                             $1,200,000

Common Stock                                                  $1,300,000

Revaluation                                                           $300,000

Total Net Assets Acquired                               $2,800,000

Therefore,

Net Assets Attributable to Fortuna Company = $2,800,000 × 80%

                                                                            = $ 2,240,000

Purchase Consideration $350,000 < Net Assets Acquired ($ 2,240,000), therefore we have a gain situation of $1,890,000

2b.

Calculation of Non - Controlling Interest

Note : I have elected to measure Non-Controlling Interest as proportionate to the fair value of Net Identified Assets Acquired !

Non - Controlling Interest = Non Controlled Interest % × Total Net Assets Acquired  

                                           = 20 % × $2,800,000

                                           = $560,000

2c.

Consolidation is 100 % of Parent/ Acquirer and 100% of subsidiary (Acquired) combined.

Assets :

Fortuna Company = $6,700,000 + $350,000     = $7,050,000

Acappella Company = $2,500,000 + $300,000 = $2,800,000

Total Assets                                                            = $9,850,000

Liabilities :

Fortuna Company                                                  = $3,000,000

Acappella Company                                                = $ 800,000

Total Liabilities                                                        = $3,800,000

2d.

Journal 1

Property Plant and Equipment $300,000 (debit)

Revaluation Reserve $300,000 (credit)

Revaluation of Acappella`s Property Plant and Equipment item

Journal 2

Common Stock $1,300,000 (debit)

Retained Earnings $1,200,000 (debit)

Revaluation Reserve $100,000 (debit)

Investment in Subsidiary $350,000 (credit)

Non-Controlling Interest $560,000 (credit)

Gain on Bargain Purchase $1,890,000 (credit)

Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2020 totaled $2,283,744 as follows.
Work in process, November 1 Materials $78,600 Conversion costs 48,700 $127,300 Materials added 1,592,280 Labor 225,100 Overhead 339,064 Production records show that 35,200 units were in beginning work in process 30% complete as to conversion costs, 661,000 units were started into production, and 25,400 units were in ending work in process 40% complete as to conversion costs. Materials are entered at the beginning of each process.
(a) Determine the equivalent units of production and the unit production costs for the Assembly Department.
(Round unit costs to 2 decimal places, e.g. 2.25.)
Materials Conversion Costs
Equivalent Units
Cost per unit $ $
(b) Determine the assignment of costs to goods transferred out and in process.
(c) Prepare a production cost report for the assembly dept.

A financial institution where the users are the owners and generally share a common bond are known as

How long will it take for Wyoming to double its economy if it maintains this growth rate? Give your answer to two decimals. g

Dodie Company completed its first year of operations on December 31. All of the year's entries have been recorded except for the following: At year-end, employees earned wages of $4,000, which will be paid on the next payroll date in January of next year. At year-end, the company had earned interest revenue of $1,500. The cash will be collected March 1 of the next year.
Required: 2. Prepare the required adjusting entry for transactions (a) and (b). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Which activity combines inventory management, order processing, warehousing, material handling, and transportation

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Question 9 of 10
How should an annual business license fee be recorded in a journal entry?
A. As a credit, because it is an increased liability
B. As a credit, because it creates equity
C. As a debit, because it is an increased expense
D. As a debit, because it is a loss
SNBMIT

Below are cash transactions for Goldman Incorporated, which provides consulting services related to mining of precious metals
a. Cash used for purchase of office supplies, $1,650
b. Cash provided from consulting to customers, $43,100
c. Cash used for purchase of mining equipment, $68,000.
d. Cash provided from long-term borrowing, $55,000
e. Cash used for payment of employee salaries, $23,500.
f. Cash used for payment of office rent, $11,500
g. Cash provided from sale of equipment purchased in c. above, $22,000
h. Cash used to repay a portion of the long-term borrowing in d. above, $37,500
i. Cash used to pay office utilities, $3,800
j. Purchase of company vehicle, paying $9,500 cash and borrowing $14,500
Required:
Calculate cash flows from investing activities. (List cash outflows as negative amounts.)

If a firm's beta was calculated as 1.6 in a regression equation, a commonly-used adjustment technique incorporating a weighting on long-run beta of 1.0 would provide an adjusted beta of

research how consumers might use dispute resolution to resolve conflicts with businesses.

Newland Company reported retained earnings at December 31, 2019, of $310,000. Newland had 200,000 shares of common stock outstanding at the beginning of 2020. Determine retained earnings balance. The following transactions occurred during 2020.
1. An error was discovered. In 2015, depreciation expense was recorded at $70,000, but the correct amount was $50,000.
2. A cash dividend of $0.50 per share was declared and paid.
3. A 5% stock dividend was declared and distributed when the market price per share was $15 per share.
4. Net income was $285,000.
Prepare a retained earnings statement for 2020.

Presented below are a number of balance sheet accounts of Deep Blue Something, Inc. For each of the accounts below, indicate the proper balance sheet classification.
Balance Sheet Accounts
Balance Sheet Classification
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Presented below are a number of balan Current AssetCurrent LiabilityProperty, Plant, and EquipmentRetained EarningsShareholders’ Equity
(b) Treasury Stock.
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(c) Common Stock.
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(d) Dividends Payable.
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(f)(1) Construction in Process (Constructed for another party).
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(f)(2) Construction in Process (Constructed for the use of Deep Blue Something, Inc.).
Presented below are a number of balan Current AssetCurrent LiabilityProperty, Plant, and EquipmentRetained EarningsShareholders’ Equity
(g) Petty Cash.
Presented below are a number of balan Current AssetCurrent LiabilityProperty, Plant, and EquipmentRetained EarningsShareholders’ Equity
(h) Interest Payable.
Presented below are a number of balan Current AssetCurrent LiabilityProperty, Plant, and EquipmentRetained EarningsShareholders’ Equity
(i) Deficit.
Presented below are a number of balan Current AssetCurrent LiabilityProperty, Plant, and EquipmentRetained EarningsShareholders’ Equity
(j) Equity Investments (trading).
Presented below are a number of balan Current AssetCurrent LiabilityProperty, Plant, and EquipmentRetained EarningsShareholders’ Equity
(k) Income Taxes Payable.
Presented below are a number of balan Current AssetCurrent LiabilityProperty, Plant, and EquipmentRetained EarningsShareholders’ Equity
(l) Unearned Subscription Revenue.
Presented below are a number of balan Current AssetCurrent LiabilityProperty, Plant, and EquipmentRetained EarningsShareholders’ Equity
(m) Work in Process.
Presented below are a number of balan Current AssetCurrent LiabilityProperty, Plant, and EquipmentRetained EarningsShareholders’ Equity
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Harper Chicken Corporation processes and packages chicken for grocery stores. It purchases chickens from farmers and processes them into two different products: chicken drumsticks and chicken steak. From a standard batch of 25,000 pounds of raw chicken that costs $17,500, the company produces two parts: 4,400 pounds of drumsticks and 6,200 pounds of breast for a processing cost of $3,648. The chicken breast is further processed into 5,400 pounds of steak for a processing cost of $3,400. The market price of drumsticks per pound is $1.85 and the market price per pound of chicken steak is $5.40. If Harper decided to sell chicken breast instead of chicken steak, the price per pound would be $2.70.
Required:
a-1. Allocate the joint cost to the joint products, drumsticks and breasts, using weight as the allocation base.
a-2. Calculate the gross margin for each product.
a-3. If the drumsticks are producing a loss, should that product line be eliminated?
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b-2. Calculate the gross margin for each product.
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c-2. How would the profit be affected by your answer in c-1?

(D)
Life membership fees received by a club is
A. Revenue receipt
(B)
(C) Both (A) and (B)
(D)
Capital receipt
None of these​

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Required:
1. Prepare the journal entry to record the bond issuance on February 1, 2018.
2. Prepare the entry to record interest on July 31, 2018.
3. Prepare the necessary journal entry on December 31, 2018.
4. Prepare the necessary journal entry on January 31, 2019.

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Direct materials $ 630,000 $ 21 100 %
Direct labor 300,000 10 100
Manufacturing overhead
(fixed and variable) 720,000 24 25
Selling and administrative
expenses 600,000 20 20
Totals $ 2,250,000 $ 75
Required:
a. Compute the sales price per unit that would result in a budgeted operating income of $900,000, assuming that the company produces and sells 30,000 pairs. (Hint: First compute the budgeted sales revenue needed to produce this operating income.) Assume that the company decides to sell the boots at a unit price of $121 per pair.
b-1. Compute the total fixed costs budgeted for the year.
b-2. Compute the variable cost per unit.
b-3. Compute the contribution margin per pair of boots.
b-4. Compute the number of pairs that must be produced and sold annually to break even at a sales price of $121 per pair.

Use the following information to prepare a multistep income statement and a classified balance sheet for Eller Equipment Co. for Year 1.

Salaries expense $122,000 Beginning retained earnings $61,100
Common stock 110,000 Warranties payable (short term) 6,500
Notes receivable (short term) 32,500 Gain on sale of equipment 19,000
Allowance for doubtful accounts 19,000 Operating expenses 65,000
Accumulated depreciation 66,000 Cash flow from investing activities 116,000
Notes payable (long term) 160,000 Prepaid rent 38,000
Salvage value of building 21,000 Land 95,000
Interest payable (short term) 6,000 Cash 41,000
Uncollectible accounts expense 45,000 Inventory 101,000
Supplies 6,500 Accounts payable 55,000 Equipment 243,000
Interest expense 36,000 Interest revenue 6,200
Salaries payable 68,000 Sales revenue 940,000
Unearned revenue 47,000 Dividends 20,000
Cost of goods sold 595,000 Warranty expense 9,200
Accounts receivable 108,000 Interest receivable (short term) 3,600
Depreciation expense 3,000

Pearsall Company's defined benefit pension plan had a PBO of $275,000 on January 1, 2021. During 2021, pension benefits paid were $45,000. The discount rate for the plan for this year was 11%. Service cost for 2021 was $88,000. Plan assets (fair value) increased during the year by $55,000. The amount of the PBO at December 31, 2021, was:

Use the following data to calculate the current ratio. Koonce Office Supplies Balance Sheet December 31, 2014
Cash $130,000 Accounts payable $100,000
Accounts receivable $100,000 Salaries and wages payable $20,000
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Prepaid insurance $60,000 Total liabilities 320000
Stock investments $170,000 Common stock $240,000
Land 180000 Retained earnings $500,000
Buildings 210000 Total stockholders' equity 740000
Less: Accumulated depreciation ($40,000) Total liability and 1.060,000
$170,000 stockholder equity
Trademarks $140,000
Total assets $1.060,000
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b. 2.13:1
c. 1.44:1
d. 2.86:1

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Cash $ 23,000
Accounts payable $ 19,000
Investments (short-term) 2,100
Accrued liabilities payable 3,100
Accounts receivable 4,600
Notes payable (short-term) 5,200
Inventory 27,000
Notes payable (long-term) 41,000
Notes receivable (long-term) 2,700
Common stock 10,700
Equipment 57,000
Additional paid-in capital 96,300
Factory building 91,000
Retained earnings 36,600
Intangibles 4,500
During the current year, the company had the following summarized activities:
a. Purchased short-term investments for $8,600 cash.
b. Lent $6,300 to a supplier who signed a two-year note.
c. Purchased equipment that cost $24,000; paid $4,900 cash and signed a one-year note for the balance.
d. Hired a new president at the end of the year.
e. The contract was for $86,000 per year plus options to purchase company stock at a set price based on company performance.
f. Issued an additional 2,300 shares of $0.50 par value common stock for $19,000 cash.
g. Borrowed $19,000 cash from a local bank, payable in three months.
h. Purchased a patent (an intangible asset) for $1,100 cash.
i. Built an addition to the factory for $29,000; paid $8,700 in cash and signed a three-year note for the balance.
j. Returned defective equipment to the manufacturer, receiving a cash refund of $2,400.
Prepare a classified balance sheet at December 31of the current year.

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a. A $125 debit memoranda is included with the bank statement and dealt with a customer's check for $100 marked NSF and returned to Brown Company by the bank. In addition, the bank charged the company's a $25 processing fee.
b. The September 30 cash receipts, $1,250, were placed in the bank's night depository after banking hours on that date and this amount did not appear on the September 30 bank statement.
c. A $15 debit memorandum for checks printed by the September 30 bank was included with the canceled checks.
d. Outstanding checks amounted to $1,145.
e. A customer's note for $900 was collected by the bank. A collection fee of $25 was deducted by the bank and the difference was deposited in the account.
f. Included with the canceled checks was a check for $275, drawn on another company, Browne Inc.

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Required:
A. Calculate Katie’s deduction for qualified business income.
B. Assume the same facts provided above, except Katie’s net business income from Engineers One is $400,000 (net of the associated for AGI self-employment tax deduction), and her taxable income before the deduction for qualified business income is $350,000.

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OA. How much money you have to make every year in your job.
OB. How much money you owe in total versus how much you make.
O C. How much money you have to pay back on your income.
How much money you owe on your student loan compared with how much
OD.
you want to make in your job.

This program consists of three lottery-funded scholarships for Florida high school graduates who demonstrate high academic achievement and enroll in eligible Florida public or private postsecondary institutions.

Financial Aid
Florida Pre-Paid College Plan
College Board
Bright Futures Scholarship

Toil & Oil processes crude oil to jointly produce gasoline, diesel, and kerosene. One batch produces 3,415 gallons of gasoline, 2,732 gallons of diesel, and 1,366 gallons of kerosene at a joint cost of $12,000. After the split-off point, all products are processed further, but the estimated market price for each product at the split-off point is as follows:
Gasoline $2 per gallon
Diesel 1 per gallon
Kerosene 3 per gallon
Using the market value at split-off method, allocate the $12,000 joint cost of production to each product.
Joint Product Allocation
Gasoline $
Diesel
Kerosene
Totals $

Bren Co.'s beginning inventory at January 1, 2005 was understated by $26,000, and its ending inventory was overstated by $52,000. As a result, Bren's cost of goods sold for 2005 was: