Questions from Financial Accounting

Q: Assume the same facts as in E8-8 but prepare entries

Assume the same facts as in E8-8 but prepare entries using straight-line amortization of bond discount or premium. Data from E8-8: Suspect Company issued $600,000 of 9 percent first mortgage bonds o...

Q: On January 1, 20X1, Prize Corporation paid Morton Advertising $

On January 1, 20X1, Prize Corporation paid Morton Advertising $116,200 to acquire 70 percent of Statue Company’s stock. Prize also paid $45,000 to acquire $50,000 par value 8 percent...

Q: Paint Corporation owns 60 percent of Stain Company’s shares. Partial 20X2

Paint Corporation owns 60 percent of Stain Company’s shares. Partial 20X2 financial data for the companies and consolidated entity were as follows: On January 1, 20X2, Paintâ...

Q: Summer Company sells all its output at 25 percent above cost.

Summer Company sells all its output at 25 percent above cost. Parade Corporation purchases all its inventory from Summer. Selected information on the operations of the companies over the past three ye...

Q: Select the correct answer for each of the following questions.

Select the correct answer for each of the following questions. 1. What is the theoretically preferred method of presenting a non controlling interest in a consolidated balance sheet? a. As a separate...

Q: Potter Corporation and its subsidiary reported consolidated net income of $164

Potter Corporation and its subsidiary reported consolidated net income of $164,300 for 20X2. Potter owns 60 percent of the common shares of its subsidiary, acquired at book value. Non controlling inte...

Q: Select the correct answer for each of the following questions.

Select the correct answer for each of the following questions. 1. On July 1, 20X3, Barker Company purchased 20 percent of Acme Company’s outstanding common stock for $400,000 when th...

Q: Pawn Corporation purchased 30 percent of Shop Company’s common stock on January

Pawn Corporation purchased 30 percent of Shop Company’s common stock on January 1, 20X5, by issuing preferred stock with a par value of $50,000 and a market price of $120,000. The fo...

Q: Pie Corporation acquired 80 percent of Slice Company’s common stock on December

Pie Corporation acquired 80 percent of Slice Company’s common stock on December 31, 20X5, at underlying book value. The book values and fair values of Slice’s asset...

Q: Pab Corporation decided to establish Sollon Company as a wholly owned subsidiary

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