Questions from Financial Accounting

Q: Pirate Corporation purchased 100 percent ownership of Ship Company on January 1

Pirate Corporation purchased 100 percent ownership of Ship Company on January 1, 20X5, for $270,000. On that date, the book value of Ship’s reported net assets was $200,000. The exce...

Q: Select the most appropriate answer for each of the following questions:

Select the most appropriate answer for each of the following questions: 1. Goodwill is a. Seldom reported because it is too difficult to measure. b. Reported when more than book value is paid in purch...

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

Select the correct answer for each of the following questions. 1. On January 1, 20X1, Prim Inc. acquired all of Scrap Inc.’s outstanding common shares for cash equal to the stock&aci...

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

On June 10, 20X8, Playoff Corporation acquired 100 percent of Series Company’s common stock. Summarized balance sheet data for the two companies immediately after the stock acquisiti...

Q: Plaza Corporation acquired 100 percent of Square Corporation’s voting common stock on

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

Q: Plumber Corporation acquired all of Socket Corporation’s voting shares on January 1

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

Q: Plump Corporation acquired 100 percent of Slim Corporation’s common stock on December

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

Q: Pint Enterprises acquired 100 percent of Saloon Builders’ stock on December 31

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

Q: Assume the same facts as in E8-3 but prepare entries

Assume the same facts as in E8-3 but prepare entries using straight-line amortization of bond discount or premium. “A” indicates that the item relates to Appendix 8A. Data from E8-3: Purse Corporati...

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

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