Questions from Financial Accounting

Q: Inc., owns Tempest Corp. These two companies’ individual balance sheets

Inc., owns Tempest Corp. These two companies’ individual balance sheets follow: Requirements 1. Prepare a consolidated balance sheet of Alfa, Inc. It is sufficient to complete the...

Q: This problem demonstrates the dramatic effect that consolidation accounting can have on

This problem demonstrates the dramatic effect that consolidation accounting can have on a company’s ratios. Roto Motor Company (Roto) owns 100% of Roto Motor Credit Corporation (RMCC...

Q: Assume Jackson, Inc., paid $351,000 to acquire

Assume Jackson, Inc., paid $351,000 to acquire all the common stock of Aiello Corporation, and Aiello owes Jackson $168,000 on a note payable. Immediately after the purchase on September 30, 2012, the...

Q: Insurance companies and pension plans hold large quantities of bond investments.

Insurance companies and pension plans hold large quantities of bond investments. Brighton Insurance Corp. purchased $2,300,000 of 10.0% bonds of Scanlon, Inc., for 114 on January 1, 2012. These bonds...

Q: Assume Coffee House, Inc., opened an office in Cocoa Beach

Assume Coffee House, Inc., opened an office in Cocoa Beach, Florida. Further assume that Coffee House incurred the following costs in acquiring land, making land improvements, and constructing and fur...

Q: Greco Lake Resort reported the following on its balance sheet at December

Greco Lake Resort reported the following on its balance sheet at December 31, 2012: Property, plant, and equipment, at cost: Land............................................................ $ 143,000...

Q: Carney, Inc., has the following plant asset accounts: Land

Carney, Inc., has the following plant asset accounts: Land, Buildings, and Equipment, with a separate accumulated depreciation account for each of these except Land. Carney completed the following tra...

Q: On January 4, 2012, G.L. Brown Co

On January 4, 2012, G.L. Brown Co. paid $235,000 for a computer system. In addition to the basic purchase price, the company paid a setup fee of $1,100, $6,200 sales tax, and $37,200 for a special pla...

Q: Lily, Inc., sells electronics and appliances. The excerpts that

Lily, Inc., sells electronics and appliances. The excerpts that follow are adapted from Lily’s financial statements for 2012 and 2011. Requirements 1. How much was Lilyâ€...

Q: Folgate Co. bought 4,000 shares of German common stock

Folgate Co. bought 4,000 shares of German common stock at $40; 680 shares of Chile stock at $47.75; and 1,600 shares of Sweden stock at $78—all as available-for-sale investments. At December 31, Hoove...