Questions from Financial Accounting


Q: Ramrod Manufacturing acquired all the assets and liabilities of Stafford Industries on

Ramrod Manufacturing acquired all the assets and liabilities of Stafford Industries on January 1, 20X2, in exchange for 4,000 shares of Ramrod’s $20 par value common stock. Balance s...

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Q: Following are the balance sheets of Boogie Musical Corporation and Toot-

Following are the balance sheets of Boogie Musical Corporation and Toot-Toot Tuba Company as of December 31, 20X5. Following are the balance sheets of Boogie Musical Corporation and Toot-Toot Tuba C...

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Q: Bilge Pumpworks and Seaworthy Rope Company agreed to merge on January 1

Bilge Pumpworks and Seaworthy Rope Company agreed to merge on January 1, 20X3. On the date of the merger agreement, the companies reported the following data: Bilge Pumpworks has 10,000 shares of it...

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Q: On January 1, 20X2, End Corporation acquired all of Cork

On January 1, 20X2, End Corporation acquired all of Cork Corporation’s assets and liabilities by issuing shares of its common stock. Partial balance sheet data for the companies prio...

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Q: On January 1, 20X1, Alpha Corporation acquired all of Bravo

On January 1, 20X1, Alpha Corporation acquired all of Bravo Company’s assets and liabilities by issuing shares of its $3 par value stock to the owners of Bravo Company in a business...

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Q: Plush Corporation purchased 100 percent of Common Corporation’s common stock on January

Plush Corporation purchased 100 percent of Common Corporation’s common stock on January 1, 20X3, and paid $450,000. The fair value of Common’s identifiable net assets at that date was $430,000. By the...

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Q: Bigtime Industries Inc. entered into a business combination agreement with Hydrolized

Bigtime Industries Inc. entered into a business combination agreement with Hydrolized Chemical Corporation (HCC) to ensure an uninterrupted supply of key raw materials and to realize certain economies...

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Q: Tab Corporation decided to establish Collon Company as a wholly owned subsidiary

Tab Corporation decided to establish Collon Company as a wholly owned subsidiary by transferring some of its existing assets and liabilities to the new entity. In exchange, Collon issued Tab 30,000 sh...

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Q: Eagle Corporation established a subsidiary to enter into a new line of

Eagle Corporation established a subsidiary to enter into a new line of business considered to be substantially more risky than Eagle’s current business. Eagle transferred the followi...

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Q: Thumb Company created New Company as a wholly owned subsidiary by transferring

Thumb Company created New Company as a wholly owned subsidiary by transferring assets and accounts payable to New in exchange for its common stock. New recorded the following entry when it received th...

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