Quiz #1 Key

company's accounting year ends December 31. Date of Acquisition Cost 9/20/23 $38,000 10/2/23 14,000 Investment Colt Company stock Dana Company stock What amount is reported for gain or loss on these securities in 2023 income? Select one: O a. $800 loss O Fair Value 12/31/23 Date Sold Selling Price $37,000 2/10/24 $42,000 14,200 1/17/24 13,000 b. $1,000 loss c. No gain or loss d. $3,000 gain ہے

Problem 4 (Recommended: review slides 35-44)Delta acquires 70 percent of Gamma on September 1, 2020, and an additional 10 percent onNovember 1, 2021. Annual amortization of $8,400 attributed to the controlling interest relates tothe first acquisition. Gamma reports the following figures for 2021:Revenues $ 500,000Expenses $ 350,000Retained earnings, 1/1/21 $3,500,000Dividend Paid $ 40,000Common Stock $ 400,000 Without regard for this investment, Delta earns $480,000 in net income ($840,000 revenues less $360,000 expenses; incurred evenly throughout the year) during 2021. Prepare a schedule of consolidated net income and apportionment to non-controlling and controlling interests for 2021.

Answer should be presented as: DECREASE 123456 or INCREASE 123456 During 2021, the first year of operations, Dejavu Company purchased the following equity securities: Market Value December 31, 2022 1,900,000 1,100,000 1,600,000 1,200,000 Security One Security Two Security Three Security Faur Cost 2,200,000 700,000 December 31, 2021 1,400,000 1,000,000 1,500,000 2,500,000 1,600,000 2,000,000 Security One and Security Two are held for trading and Security Three and Security Four are measured at Fair value through other comprehensive income by election. During 2022, the entity sold Security Two for P1,000,000 and half of Security Four for P500,000. Revenues and operating (marketing and administrative) expenses for the year 2022 are P7,500,000 and P4,000,000 respectively. How much is the change in Retained Earnings for the year 2022 due to the equity securities (indicate whether increase or decrease)?

On January 1, 2023 AAA Company acquired BBB Company 10%, P600,000 bonds for P621,300. The bonds which pays interest on every June 30 and December 31. The bond will mature on January 1, 2028 and were purchased to yield 9%. The business model of the AAA Company in managing investment is to hold the asset in order to collect the contractual cash flows. 1. how much is the interest income in 2023 2.how much is the carrying amount of the bonds at december 31,2023 3.how much is the unamortized portion of premium on december 31, 2024 4. how much cash to be debited on december 31,2024

Answer should be presented as: DECREASE 123456 or INCREASE 123456 :During 2021, the first year of operations, Dejavu Company purchased the following equity securities: Security One Security Two Security Three Security Four Cost 2,200,000 700,000 1,600.000 2,000,000 December 31, 2021 1,400,000 1,000,000 1,500.000 Market Value December 31, 2022 1,900,000 1,100,000 1,600,000 1,200,000 2,500.000 Security One and Security Two are held for trading and Security Three and Security Four are measured at Jair value through other comprehensive income by election. During 2022, the entity sold Security Two for P1,000,000 and half of Security Four for PS00,000. Revenues and operating (marketing and administrative) expenses for the year 2022 are P7500,000 and P4,000,000 respectively. How much is the change in Retained Earnings for the year 2022 due to the equity securities findicate whether increase or decrease)?

Z Corporation has the following transactions relating to its investment during 2020: Jan 5 Acquired 16,000 shares of Y company for P1,500,000 paying an additional P10,000 for brokerage and P5,000 for commission. Feb 14 Received dividends from Y company declared January 10,2020 to the stockholders of records January 31,2020, P16,000. Required:prepare all the necessary entries assuming the investment is 1. Financial asset at Fair Value through profit and loss 2. Financial asset at Fair Value through other comprehensive income

Luxemburg Company purchased the following investments during 2021:                                                                         Initial Cost        Transaction cost           Fair value Year-end 2021           Security A         P180,000           P5,000                           P170,000           Security B         150,000             2,500                              120,500               On July 31, 2022, the entity sold all of the shares of Security B for P125,800. On December 31, 2022, the shares of Security A had a fair value of P205,000. No other activity occurred during 2022 concerning the portfolio.                                               Retained earnings before any adjustments on equity securities on December 31, 2022, is P975,000.                                                         Assuming nontrading securities, how much is the Retained earnings on December 31, 2022?

Ch TB MC Qu. 01-16 Borgin Inc, owns 30% of the outstanding... Borgin Inc. owns 30% of the outstanding voting common stock of Burkes Co. and has the ability to significantly influence the investee's operations and decision-making. On January 1, 2021, the balance in the Investment in Burkes Co. account was $402,000. Amortization associated with the purchase of this investment is $8,000 per year. During 2021, Burkes earned income of $108,000 and paid cash dividends of $36,000. Previously in 2020, Burkes had sold inventory costing $28,800 to Borgin for $48,000. All but 25% of this merchandise was consumed by Borgin during 2020. The remainder wos used during the first few weeks of 2021. Additional sales were made to Borgin in 2021; inventory costing $33,600 was transferred at a price of $60,000. Oor this total, 40% was not consumed until 2022. What was the balance in the Investment in Burkes Co. account at the end of 2021?

Atlas Company purchased the following investments during 2020: Classification Cost Market Value December 31, 2020 Security A Trading 900,000 1,000,000 Security B Trading 1,000,000 1,600,000 On July 31, 2021, the entity sold all of the shares of Security B for P1,100,000. On December 31. 2021, the shares of Security A had a market value of P600,000. No other activity occurred during 2021 in relation to the trading security portfolio. 14. What total loss on the trading securities should be reported in the income statement for 2021? a. 400,000 c. 500,000 b. 900,000 d. 100,000

On January 1, 2019, X Company purchased a 30% interest in Y Company for $250,000. Y reported net income of $100,000 for 2019 and declared and paid a dividend of $10,000. X using the Cost method. In its December 31, 2019, balance sheet what amount should X report as its investment in Y? Select one: a. 277,000 b. 340,000 c. 250,000 d. 223,000

O Quiz: BSA 3203 BBF - Midterm O x A ue.instructure.com/courses/24511/quizzes/128777/take/questions/2083785 =S O Problem 5 On January 1, 2021, Pe Inc. purchased Ra Corp. for P1,500,000 for 100% ownership of its common stocks. An P80,000 excess was identified in the purchase price, which was attributable to an equipment with a net book value of P400,000 and remaining useful life of 8 years as of date. On December 31, 2022, the equipment identified at acquisition date that was attributed to the excess was sold to an unrelated party for P400,00O. How much gain from the sale of equipment must be reported in the consolidated income statement of Pe and Ra? 11:52 AM O Type here to search 33°C Light rain A ENG 29/03/2022

Problem: On January 2, 2019, Xiao Company purchased an equipment with estimated useful life of 5 years. On January 4, 2021, Xiao sold the equipment to Ganyu Company and recorded the following entry in the books: Cash 39,000 Аcс. Dep. 16,000 Equipment 40,000 Gain on sale 15,000 Ganyu Company holds 60% of the outstanding voting shares of Xiao Company, Xiao reported net income of P45,000, and Ganyu reported net income from its own operations of P85,000 for 2021. There is no change in the estimated life of equipment as a result of intercompany transfer. Q#1: In the working paper elimination entry for 2021, the depreciation expense will be a Credited for 5,000 b. Debited for 5,000 c. Credited for 13,000 d. Debited for 13,000

What amount of income from the investment should be Problem 17-11 (AICPA Adapted) On July 1, 2021, Focus Company purchased 30,000 shares of Eagle Company's 100,000 outstanding ordinary shares for P200 per share. On December 15, 2021, Eagle Company paid P1,000,000 dividends. Eagle Company's net income for 2021 wee P5,000,000 earned evenly throughout the year. reported for the current year? a. 500,000 b. 300,000 c. 750,000 d. 150,000 518

Problem: On January 2, 2019, Xiao Company purchased an equipment with estimated useful life of 5 years. On January 4, 2021, Xiao sold the equipment to Ganyu Company and recorded the following entry in the books: Cash 39,000 Асс. Dep. 16,000 Equipment 40,000 Gain on sale 15,000 Ganyu Company holds 60% of the outstanding voting shares of Xiao Company, Xiao reported net income of P45,000, and Ganyu reported net income from its own operations of P85,000 for 2021. There is no change in the estimated life of equipment as a result of intercompany transfer. Q#1: The controlling interest in net income is: а. 14,000 b. 12,000 c. 52,000 d. 18,000

Juniper Inc. acquired a 25% interest in Saturn Co. on January 1, 2021, for $260,000.  During 2021, Saturn reported net income of $86,000, and paid a total cash dividend to shareholders in the amount of $16,000.  Juniper uses the equity method to account for this investment.  At the end of 2021, Juniper will report the following debit balance in the investment account:   Question 6 options:   $285,500   $260,000   $277,500   $281,500

During 2020, Carpenters Corporation purchased equity securities and carried them at fair value through other comprehensive income. Pertinent data follow:Earth                                           Ordinary                  Wind Ordinary             Fire OrdinaryCost                                            P36,000                      P80,000                      P180,000Market value. 12/31/20                  40,000                       60,000                         186,000 The unearned loss reported in Carpenter's 2015 profit or loss is: A. P0B. P6,000C. P10,000

On January 1, 2017, Tenants Company acquired as a long term investment for P5,600,000 a 40% interest in an investee when the fair value of the net assets was P14,000,000. The investee reported the following results of operation: 2017       (4,000,000) 2018       (5,600,000) 2019       (6,400,000) 2020        3,200,000 What amount should be reported by tenants as investment loss for the year 2019?

ABC Corp. acquired 40% of DEF Corp. by spending Rp1.000.000 cash on January 1, 2020. Book value of DEF’s net assets at acquisition date was Rp1.500.000; Inventories were undervalued for Rp100.000 and note payable was overvalued for Rp200.000. All inventories are sold in 2020 and note payable will be due at the end of 2023. At the end of 2020, DEF announced net loss Rp250.000. The ending balance of “Investment in DEF” account at the end of 2020 will be:

Problem 15-2 (IAA) On January 1, 2020, Spark Company purchased the following trading securities: Fair value Cost December 31, 2020 Aura Company ordinary Bora Company preference Cara Company bonds 600,000 350,000 500,000 650,000 200,000 400,000 On October 1, 2021, the entity sold one-half of Aura Company ordinary for P375,000. On December 31, 2021, the fair value of the remaining securities was P800,000. Required: Prepare journal entries to record the transactions.

Current Attempt in Progress On January 1, 2025, Windsor Corporation purchased 20% of the common shares of Sheridan Company for $196,000. During the year, Sheridan earned net income of $77,000 and paid dividends of $19,250. Prepare the entries for Windsor to record the purchase and any additional entries related to this investment in Sheridan Company in 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation (To record purchase of stock.) (To record receipt of dividends.) (To record revenue.) Debit Credit

L2-4 Awe Company pays CU500,000,000 for a 30% interest in Groy Company on July 1, 19x2 when the book value of Groy Company's net assets equals fair value. Awe Company amortizes any goodwill from this investment over 20 years. Information related to Groy Company is as follows:   31 Desember 19x1 31 Desember 19x2 Share capital, nominal IDR 1,000 Rp600.000.000 Rp600.000.000 Retained earning 400.000.000 500.000.000 Total Shareholders' Equity 1.000.000.000 1.100.000.000 Net profit earned during the year 19x2   200.000.000 Dividend for the year 19x2 (paid on March 1 of Rp. 50,000,000 and September 1 of Rp. 50,000,000)   100.000.000 Required: calculate Awe Company's revenue from Groy Company for the year 19x2

Orange LTD has the following investments at December 31, 2020; Fair value Historical cost Sept 30, 2019 $15,000 Fair value Sept 30, 2020 $25,000 Fair value Dec 31, 2020 $30,000 Shares of DEF Bonds of Brooke purchased at par value) Shares of CooksTown Shares of Tulip $25,000 10,000 12,000 18,000 12,000 18,000 16,500 11,000 16,000 19,500 12,500 16,000 20,500 Orange, whose year-end is Sept. 30, purchased the share of Tulip on January 1, 2019, If Orange irrevocably elected to classify its investment in Tulip at fair value through OCL what amount will be reported in other comprehensive income at September 30, 2020? $1,500 gain O $2,500 gain. et O $19,500 O $3,000 gain.

On January 1, 2017, Marian Co. acquired as a long term investment for $7,000,000 a 40% interest in an investee when the fair value of the net assets was $17,500,000. The investee has reported the following net losses:2017 - 5,000,0002018 - 7,000,0002019 - 8,000,0002020 - 4,000,000On January 1, 2019, Marian Co. made cash advances of $2,000,000 to the investee. On December 31, 2020, it is not expected that Marian Co. will provide further financial support for the investee. Assuming in 2021, the investee earned a net income of $3,000,000, what amount must be recognized by Marian Co. as its share in the 2021 net income of the investee?