Questions from Financial Accounting

Q: Prime Corporation acquired 100 percent ownership of Steak Products Company on January

Prime Corporation acquired 100 percent ownership of Steak Products Company on January 1, 20X1, for $200,000. On that date, Steak reported retained earnings of $50,000 and had $100,000 of common stock...

Q: Prince Corporation acquired 100 percent of Sword Company on January 1,

Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $203,000. The trial balances for the two companies on December 31, 20X7, included the following amounts: Additional I...

Q: On December 31, 20X6, Print Corporation and Size Company entered

On December 31, 20X6, Print Corporation and Size Company entered into a business combination in which Print acquired all of Size’s common stock for $935,000. At the date of combinati...

Q: Pencil Company purchased 40 percent ownership of Stylus Corporation on January 1

Pencil Company purchased 40 percent ownership of Stylus Corporation on January 1, 20X1, for $150,000. Stylus’s balance sheet at the time of acquisition was as follows: During 20X1...

Q: This problem is a continuation of P5-37. Pirate Corporation

This problem is a continuation of P5-37. Pirate Corporation acquired 60 percent ownership of Ship Company on January 1, 20X8, at underlying book value. At that date, the fair value of the non controll...

Q: Par Corporation holds 60 percent of Short Publishing Company’s voting shares.

Par Corporation holds 60 percent of Short Publishing Company’s voting shares. Par issued $500,000 of 10 percent bonds with a 10-year maturity on January 1, 20X2, at 90. On January 1,...

Q: Peace Company issued common shares with a par value of $50

Peace Company issued common shares with a par value of $50,000 and a market value of $165,000 in exchange for 30 percent ownership of Symbol Corporation on January 1, 20X2. Symbol reported the followi...

Q: On January 1, 20X0, Pepper Corporation issued 6,000

On January 1, 20X0, Pepper Corporation issued 6,000 of its $10 par value shares to acquire 45 percent of the shares of Salt Manufacturing. Salt Manufacturing’s balance sheet immediat...

Q: Plug Corporation acquired 35 percent of Spark Corporation’s stock on January 1

Plug Corporation acquired 35 percent of Spark Corporation’s stock on January 1, 20X8, by issuing 25,000 shares of its $2 par value common stock. Spark Corporation’s...

Q: Pesto Company paid $164,000 to acquire 40 percent ownership

Pesto Company paid $164,000 to acquire 40 percent ownership of Sauce Company on January 1, 20X2. Net book value of Sauce’s assets on that date was $300,000. Book values and fair valu...