Questions from Financial Accounting

Q: During review of the adjusting entries to be recorded on December 31

During review of the adjusting entries to be recorded on December 31, 20X8, Grand Corporation discovered that it had inappropriately been using the cost method in accounting for its investment in Case...

Q: Rod Corporation purchased 100 percent ownership of Stafford Corporation on January 1

Rod Corporation purchased 100 percent ownership of Stafford Corporation on January 1, 20X4, for $65,000, which was $10,000 above the underlying book value. Half the additional amount was attributable...

Q: Turner Corporation reported the following balances at January 1, 20X9:

Turner Corporation reported the following balances at January 1, 20X9: On January 1, 20X9, Gross Corporation purchased 100 percent of Turner’s stock. All tangible assets had a rema...

Q: On June 10, 20X8, Tower Corporation acquired 100 percent of

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...

Q: Crumple Car Rentals is planning to expand into the western part of

Crumple Car Rentals is planning to expand into the western part of the United States and needs to acquire approximately 400 additional automobiles for rental purposes. Because Crumple’s cash reserves...

Q: Reed Corporation acquired 100 percent of Thorne Corporation’s voting common stock on

Reed Corporation acquired 100 percent of Thorne Corporation’s voting common stock on December 31, 20X4, for $395,000. At the date of combination, Thorne reported the following: At...

Q: Road Corporation acquired all of Conger Corporation’s voting shares on January 1

Road Corporation acquired all of Conger Corporation’s voting shares on January 1, 20X2, for $470,000. At that time Conger reported common stock outstanding of $80,000 and retained earnings of $130,000...

Q: Blank Corporation acquired 100 percent of Faith Corporation’s common stock on December

Blank Corporation acquired 100 percent of Faith Corporation’s common stock on December 31, 20X2, for $189,000. Data from the balance sheets of the two companies included the followin...

Q: Gold Enterprises acquired 100 percent of Premium Builders’ stock on December 31

Gold Enterprises acquired 100 percent of Premium Builders’ stock on December 31, 20X4. Balance sheet data for Gold and Premium on January 1, 20X5, are as follows: At the date of th...

Q: Astor Corporation’s balance sheet at January 1, 20X7, reflected the

Astor Corporation’s balance sheet at January 1, 20X7, reflected the following balances: Phel Corporation, which had just entered into an active acquisition program, acquired 100 pe...