Questions from Financial Accounting

Q: Police Corporation purchased 70 percent of Station Company’s voting shares on January

Police Corporation purchased 70 percent of Station Company’s voting shares on January 1, 20X4, at underlying book value. On that date it also purchased $100,000 par value 12 percent Station bonds, whi...

Q: Prant Company acquired all of Sedford Corporation’s assets and liabilities on January

Prant Company acquired all of Sedford Corporation’s assets and liabilities on January 1, 20X2, in a business combination. At that date, Sedford reported assets with a book value of $624,000 and liabil...

Q: Pea Corporation acquired 80 percent of Split Company’s stock on January 1

Pea Corporation acquired 80 percent of Split Company’s stock on January 1, 20X1, at underlying book value. At that date, the fair value of the non controlling interest was equal to 2...

Q: Punyain Company acquired Sallsap Corporation on January 1, 20X1, through

Punyain Company acquired Sallsap Corporation on January 1, 20X1, through an exchange of common shares. All of Sallsap’s assets and liabilities were immediately transferred to Punyain, which reported t...

Q: Assume the same facts as in E8-1 and prepare entries

Assume the same facts as in E8-1 and prepare entries using straight-line amortization of bond discount or premium. Data from E8-1: Pretzel Corporation owns 60 percent of Stick Corporation’s voting s...

Q: School Perfume Company issued $300,000 of 10 percent bonds

School Perfume Company issued $300,000 of 10 percent bonds on January 1, 20X2, at 110. The bonds mature 10 years from issue and have semiannual interest payments on January 1 and July 1. Parsons Corpo...

Q: The following balance sheets were prepared for Pam Corporation and Slest Company

The following balance sheets were prepared for Pam Corporation and Slest Company on January 1, 20X2, just before they entered into a business combination: Pam acquired all of Slest Companyâ
...

Q: Phone Corporation holds 80 percent of Smart Company’s voting shares, acquired

Phone Corporation holds 80 percent of Smart Company’s voting shares, acquired on January 1, 20X1, at underlying book value. On January 1, 20X4, Phone purchased Smart bonds with a par...

Q: Smart Company issued $100,000 of 10 percent bonds on

Smart Company issued $100,000 of 10 percent bonds on January 1, 20X1, at 120. The bonds mature in 10 years and pay 10 percent interest annually on December 31. Phone Corporation holds 80 percent of Sm...

Q: The following financial statement information was prepared for Plue Corporation and Sparse

The following financial statement information was prepared for Plue Corporation and Sparse Company at December 31, 20X2: Plue and Sparse agreed to combine as of January 1, 20X3. To effect the merger...