Homework Answers
1.
a.Ponds Corporation AC Dr $84000
Income from Sale of asset Cr $84000
b. Cash Ac Dr.84000
To Ponds Corporation a/c 84,000
(Being income from sale of asset)
2. Dec 31,2018
Machine A/c DR $84000
To cash Ac $84000
(Being asset additions)
Depreciation a/c Dr.$28000
to Machine A/c $280000
(Depreciation charged for Year end dec31 2018)
3. While the asset sold by parent company
Cash ac dr. $30,000
To Machine Ac $28000
To Income from Machine $2000
(Being asset sold on gain)
Add Answer to:
Problem 2 75%-owned subsidiary owned a machine with an original cost of $820,000. A has been...
The following information is available concerning transactions between a parent and its wholly-owned subsidiary for the...
The following information is available concerning transactions between a parent and its wholly-owned subsidiary for the current year. The subsidiary purchased land from its parent in a prior year, at a cost of $400,000. The parent had reported the land on its books at $300,000. The parent sells merchandise to the subsidiary. The subsidiary’s beginning inventory includes intercompany profit of $50,000, and its ending inventory includes intercompany profit of $65,000. Total sales from the parent to the subsidiary were $600,000....
During 2013, Pier One Company billed its 80% owned subsidiary, Scale Company, $723,600 for architectural services. The c...
During 2013, Pier One Company billed its 80% owned subsidiary,
Scale Company, $723,600 for architectural services. The cost to
Pier One Company of providing the services was $426,500 for
salaries and $147,100 for other operating expenses. Scale Company
charged the architecture fees to the cost of a building that it
opened on January 1, 2014. The building had an estimated useful
life of 30 years.
Prepare in general journal form the workpaper entries relating to
the intercompany fees that are...
3) Prince Company owns 104,000 of the 130,000 shares outstanding of Serf Corporation. Serf Corporation sold...
3) Prince Company owns 104,000 of the 130,000 shares outstanding of Serf Corporation. Serf Corporation sold equipment to Prince Company on January 1, 2017 for $740,000. The equipment was originally purchased by Serf Corporation on January 1, 2013 for $1,280,000 and at that time its estimated depreciable life was 8 years. The equipment is estimated to have a remaining useful life of four years on January 1, 2017. Both companies use the straight-line method to depreciate equipment. Required: A. Prepare,...
On January 2, 2019, a parent sells a building with original cost of $100,000 and accumulated...
On January 2, 2019, a parent sells a building with original cost of $100,000 and accumulated depreciation of $25,000 to its wholly-owned subsidiary for $60,000. The estimated remaining life of the building is 5 years, and straight-line depreciation is appropriate. On the December 31, 2021, the subsidiary still owns the building. The net effect of the working paper eliminations (I) for 2021 for this intercompany building sale: A. Increase accumulated depreciation by $34,000 B. Increase investment in subsidiary by $6,000...
50. Prepare consolidation spreadsheet for intercompany sale of equipment-Equity method Assume a parent company acquired its...
50. Prepare consolidation spreadsheet for intercompany sale of
equipment-Equity method Assume a parent company acquired its
subsidiary on January 1, 2015, at a purchase price that was
$222,000 in excess of the book value of the subsidiary's
Stockholders' Equity on the acquisition date. Of that excess,
$132,000 was assigned to a Customer List that is being amortized
over a 10-year period. The remaining $90,000 was assigned to
Goodwill. In January of 2018, the wholly owned subsidiary sold
Equipment to the...
During 2013, Pier One Company billed its 80% owned subsidiary, Scale Company, $706,100 for architectural services....
During 2013, Pier One Company billed its 80% owned subsidiary, Scale Company, $706,100 for architectural services. The cost to Pier One Company of providing the services was $392,900 for salaries and $153,900 for other operating expenses. Scale Company charged the architecture fees to the cost of a building that it opened on January 1, 2014. The building had an estimated useful life of 30 years. Prepare in general journal form the workpaper entries relating to the intercompany fees that are...
Prepare consolidation spreadsheet for intercompany sale of equipment- Equity Method Assume a parent company acquired its...
Prepare consolidation spreadsheet for intercompany sale of equipment- Equity Method Assume a parent company acquired its subsidiary on January 1, 2015, at a purchase price that was $222,000 in excess of the book value of the subsidiary's Stockholders' Equity on the acquisition date. Of that excess, $132,000 was assigned to a Customer List that is being amortized over a 10-year period. The remaining $90,000 was assigned to Goodwill. In January of 2018, the wholly owned subsidiary sold Equipment to the...
Problem 1: A machine cost $900,000 on April 1, 2017. Its estimated salvage value is $90,000...
Problem 1: A machine cost $900,000 on April 1, 2017. Its estimated salvage value is $90,000 and its expected life is eight years. Instructions Calculate the depreciation expense (to the nearest dollar) by each of the following methods, showing the figures used. Straight-line for 2017 Double-declining balance for 2018 Sum-of-the-years'-digits for 2018 Which method would result in the smallest income amount for 2018? Problem 2: Answer each of the following questions. A plant asset purchased for $500,000 has...
2. Intercompany equipment sale (20 points) On Jan 2, 2020, a subsidiary sells to its parent...
2. Intercompany equipment sale (20 points) On Jan 2, 2020, a subsidiary sells to its parent equipment that had cost $40,000. The selling price was $36,000 and accumulated depreciation on that date was $14,000. The subsidiary and the parent both estimate that the equipment has a remaining useful life of 10 years. a. Compute the difference between the annual depreciation expense when the subsidiary owned the equipment and depreciation expense recorded by the parent. b. Compute the gain on sale...
On Jan 2, 2016. Parent sells to its wholly owned investee equipment that had cost $150,000....
On Jan 2, 2016. Parent sells to its wholly owned investee equipment that had cost $150,000. The selling price was $142,800 and accumulated depreciation on that date was $62,000. The subsidiary depreciates the equipment over its remaining life of 8 years Prepare the consolidation entries for 2018 related to the equipment sale. (The intercompany consolidation entry)
During 2013, Pier One Company billed its 80% owned subsidiary,
Scale Company, $723,600 for architectural services. The cost to
Pier One Company of providing the services was $426,500 for
salaries and $147,100 for other operating expenses. Scale Company
charged the architecture fees to the cost of a building that it
opened on January 1, 2014. The building had an estimated useful
life of 30 years.
Prepare in general journal form the workpaper entries relating to
the intercompany fees that are...
50. Prepare consolidation spreadsheet for intercompany sale of
equipment-Equity method Assume a parent company acquired its
subsidiary on January 1, 2015, at a purchase price that was
$222,000 in excess of the book value of the subsidiary's
Stockholders' Equity on the acquisition date. Of that excess,
$132,000 was assigned to a Customer List that is being amortized
over a 10-year period. The remaining $90,000 was assigned to
Goodwill. In January of 2018, the wholly owned subsidiary sold
Equipment to the...
During 2013, Pier One Company billed its 80% owned subsidiary, Scale Company, $706,100 for architectural services. The cost to Pier One Company of providing the services was $392,900 for salaries and $153,900 for other operating expenses. Scale Company charged the architecture fees to the cost of a building that it opened on January 1, 2014. The building had an estimated useful life of 30 years. Prepare in general journal form the workpaper entries relating to the intercompany fees that are...
2. Intercompany equipment sale (20 points) On Jan 2, 2020, a subsidiary sells to its parent equipment that had cost $40,000. The selling price was $36,000 and accumulated depreciation on that date was $14,000. The subsidiary and the parent both estimate that the equipment has a remaining useful life of 10 years. a. Compute the difference between the annual depreciation expense when the subsidiary owned the equipment and depreciation expense recorded by the parent. b. Compute the gain on sale...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago