Questions from Financial Accounting

Q: Nordway Corporation acquired 90 percent of Olman Company’s voting shares of stock

Nordway Corporation acquired 90 percent of Olman Company’s voting shares of stock in 20X1. During 20X4, Nordway purchased 40,000 Playday doghouses for $24 each and sold 25,000 of them to Olman for $30...

Q: Nordway Corporation acquired 90 percent of Olman Company’s voting shares of stock

Nordway Corporation acquired 90 percent of Olman Company’s voting shares of stock in 20X1. During 20X4, Nordway purchased 40,000 Playday doghouses for $24 each and sold 25,000 of them to Olman for $30...

Q: Karlow Corporation owns 60 percent of Draw Company’s voting shares. During

Karlow Corporation owns 60 percent of Draw Company’s voting shares. During 20X3, Karlow produced 25,000 computer desks at a cost of $82 each and sold 10,000 of them to Draw for $94 each. Draw sold 7,0...

Q: Holiday Bakery owns 60 percent of Farmco Products Company’s stock. During

Holiday Bakery owns 60 percent of Farmco Products Company’s stock. During 20X8, Farmco produced 100,000 bags of flour, which it sold to Holiday Bakery for $900,000. On December 31, 20X8, Holiday had 2...

Q: Holiday Bakery owns 60 percent of Farmco Products Company’s stock. On

Holiday Bakery owns 60 percent of Farmco Products Company’s stock. On January 1, 20X9, inventory reported by Holiday included 20,000 bags of flour purchased from Farmco at $9 per bag. By December 31,...

Q: Prem Company acquired 60 percent ownership of Cooper Company’s voting shares

Prem Company acquired 60 percent ownership of Cooper Company’s voting shares on January 1, 20X2. During 20X5, Prem purchased inventory for $20,000 and sold the full amount to Cooper...

Q: Hollow Corporation acquired 70 percent of Surg Corporation’s voting stock on May

Hollow Corporation acquired 70 percent of Surg Corporation’s voting stock on May 18, 20X1. The companies reported the following data with respect to intercompany sales in 20X4 and 20...

Q: The December 31, 20X8, balance sheets for Doorst Corporation and

The December 31, 20X8, balance sheets for Doorst Corporation and its 70 percent-owned subsidiary Hingle Company contained the following summarized amounts: Boorst acquired the shares of Hingle Compa...

Q: Klon Corporation owns 70 percent of Brant Company’s stock and 60 percent

Klon Corporation owns 70 percent of Brant Company’s stock and 60 percent of Torkel Company’s stock. During 20X8, Klon sold inventory purchased in 20X7 for $100,000 to Brant for $150,000. Brant then so...

Q: Herb Corporation holds 60 percent ownership of Spice Company. Each year

Herb Corporation holds 60 percent ownership of Spice Company. Each year, Spice purchases large quantities of a gnarl root used in producing health drinks. Spice purchased $150,000 of roots in 20X7 and...