Questions from Financial Accounting

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

Select the correct answer for each of the following questions. 1. In the preparation of a consolidated income statement: a. Income assigned to non controlling shareholders always is computed as a pro...

Q: In its 20X7 consolidated income statement, Plate Development Company reported consolidated

In its 20X7 consolidated income statement, Plate Development Company reported consolidated net income of $961,000 and $39,000 of income assigned to the 30 percent non controlling interest in its only...

Q: Pork Company owns 60 percent of Swine Corporation’s voting shares, purchased

Pork Company owns 60 percent of Swine Corporation’s voting shares, purchased on May 17, 20X1, at book value. At that date, the fair value of the non controlling interest was equal to...

Q: Prime Company holds 80 percent of Suspect Company’s stock, acquired on

Prime Company holds 80 percent of Suspect Company’s stock, acquired on January 1, 20X2, for $160,000. On the acquisition date, the fair value of the non controlling interest was $40,...

Q: Prime Company holds 80 percent of Suspect Company’s stock, acquired on

Prime Company holds 80 percent of Suspect Company’s stock, acquired on January 1, 20X2, for $160,000. On the date of acquisition, Suspect reported retained earnings of $50,000 and $1...

Q: Putt Corporation acquired 70 percent of Slice Company’s voting common stock on

Putt Corporation acquired 70 percent of Slice Company’s voting common stock on January 1, 20X3, for $158,900. Slice reported common stock outstanding of $100,000 and retained earning...

Q: Partial trial balance data for Profile Corporation, Shadow Company, and

Partial trial balance data for Profile Corporation, Shadow Company, and the consolidated entity at December 31, 20X7, are as follows: Additional Information: 1. Profile Corporation acquired 60 perce...

Q: Prince Corporation holds 75 percent of the common stock of Sword Distributors

Prince Corporation holds 75 percent of the common stock of Sword Distributors Inc., purchased on December 31, 20X1, for $2,340,000. At the date of acquisition, Sword reported common stock with a par v...

Q: Assume the same facts as in E8-12 but prepare entries

Assume the same facts as in E8-12 but prepare entries using straight-line amortization of bond discount or premium. Data from E8-12: Sibling Company issued $500,000 par value, 10-year bonds at 104 o...

Q: Private Company acquired 80 percent of Secret Corporation’s common stock on January

Private Company acquired 80 percent of Secret Corporation’s common stock on January 1, 20X4, for $280,000. The fair value of the noncontrolling interest was $70,000 at the date of acquisition. Private...