The P Ltd acquires all issued capital of the S Ltd for a consideration of $1,000,000 cash and 800,000 shares each
valued at $1.50. The summary statement of the financial position of the subsidiary company immediately
following the acquisition is:
Fair value of assets acquired $2,640,000
Fair value of liabilities acquired $720,000
Total shareholders’ equity of the subsidiary company $800,000
Retained earnings of the subsidiary company $1,120,000
Required:
(a) Pass the necessary journal entry to record the acquisition (2 marks)
(b) Determine the amount of goodwill (or bargain purchase) arising out of the acquisition (2 marks)
(c) Pass the necessary consolidation entry to eliminate the subsidiary by the parent company (2 marks)
(d) Determine the amount of goodwill (or bargain purchase) arising out of the acquisition if the purchase
consideration paid was $1,000,000 cash and 400,000 shares each valued at $1.50 (1 marks)

Answer: See attachment

Explanation:

Check the attachment

For (a),

Common shares = $800,000 × 1.5

= $1,200,000

b. Fair value of assets = $2640000

Less: Fair value of liabilities = ($720000)

Net value of S. Ltd = $1920000

Purchase consideration = $220000

Goodwill on acquisition = $2,200,000 - $1,920,000 = $280,000

d. Fair value of assets acquired = $2,640,000

Less: fair value of liabilities acquired = ($720,000)

Net value of S. Ltd = $1,920,000

Purchase consideration = 1,000,000 + (400,000 × 1.5) = 1,000,000 + 600,000 = 1,600,000

Bargain purchase = $1,920,000 - $1,600,000 = $320,000

See attachment for further explanation

Use the following information for the Exercises below. (Algo)
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BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee.


Gross Pay through August 31 Gross Pay for September
a. $ 5,500 $ 2,300
b. 3,000 3,100
c. 132,400 9,000

A cost due to an increase in activity is called?

A retailer spends a $500 per month to keep its online shop active and updated. The store acquires shirts at a cost of $5 per shirt. Each shirt sells for a marginal benefit of $10 per shirt.

How many shirts would you have to sell for it’s marginal benefits to be greater than its total costs?

Grant Co. issued $500,000 face value, five-year, 8% bonds on December 31, Year 1. The bonds pay interest annually starting from December 31, Year 2. The bonds were sold to yield 7%. Present value factors are as follows: 7% 8% Present value of $1, five periods 0.712986 0.680583 Present value of ordinary annuity of $1, five periods 4.100197 3.992710 Present value of annuity due of $1, five periods 4.387211 4.312127 What amount of long-term liability should Grant report on December 31, Year 1, for this sale

On online sources such as social media, ratings websites, marketers often try and make recommendations to consumers based on their past browsing history, past stated preferences, or purchase history. For example, on Amazon, a customer is likely to receive product recommendations based on previous purchases, while on Netflix, a viewer is likely to get recommendations based on their viewing history. Marketers believe that by offering options close to a customer's preferences, they are more likely to see the recommendation accepted. Recently, this micro-targeting has received some criticism. Based on our discussions in class, the reason is:

Which three things does money help people do in an economy? (Pick three)

-Exchange commodities
-measure the value of commodities
-avoid inflation
-store value
-hide the price of a commodity
-increase inflation
-remove value

Retail Records Inc. acquired all of Decibel Studios' voting shares on January 1, 20X2, for $280,000. Retail's balance sheet immediately after the combination contained the following balances:

RETAIL RECORDS INC. Balance Sheet January 1, 20X2

Cash and Receivables $120,000 Accounts Payable $75,000
Inventory 110,000 Taxes Payable 50,000
Land 70,000 Notes Payable 300,000
Buildings and Equipment (net) 350,000 Common Stock 400,000
Investment in Decibel Stock 280,000 Retained Earnings 105,000
Total Assets $930,000 Total Liabilities and Stockholders' Equity $930,000

Decibel’s balance sheet at acquisition contained the following balances: DECIBEL STUDIOS Balance Sheet January 1, 20X2

Cash and Receivables $40,000 Accounts Payable $90,000
Inventory 180,000 Notes Payable 250,000
Buildings and Equipment (net) 350,000 Common Stock 100,000
Goodwill 30,000 Additional Paid-In Capital 200,000
Retained Earnings (40,000 )
Total Assets $600,000 Total Liabilities and Stockholders' Equity $600,000

On the date of combination, the inventory held by Decibel had a fair value of $170,000, and its buildings and recording equipment had a fair value of $375,000. Goodwill reported by Decibel resulted from a purchase of Sound Stage Enterprises in 20X1. Sound Stage was liquidated and its assets and liabilities were brought onto Decibel's books.

Required:
Compute the balances to be reported in the consolidated balance sheet immediately after the acquisition for:

a. Inventory.
b. Buildings and Equipment (net).
c. lnvestment in Decibel Stock.
d. Goodwill.
e. Common Stock.
f. Retained Earnings.

North Company designs and manufactures machines that facilitate DNA sequencing. Depending on the intended purpose of each machine and its functions, each machine is likely to be unique. The job costing system in its Norfolk plant has five activity cost pools, in addition to direct materials and direct labor. Job TPY—2306 requires 1,000 printed-circuit boards. The cost per board that passes the final inspection is $240. On average, only 50% of the completed units pass the final inspection. The prime costs per completed board include $26 for direct materials and $8 for direct labor

Required:
Information pertaining to manufacturing overhead for printed-circuit boards follows: Fill in the missing amount.


Activity Cost Driver Activity Driver Rate Activity Consumption per Board Factory Overhead per Board
Axial insertion Number of axial insertions $0.27 10.0
Hardware insertion Number of hardware insertions 4.00 110.0
Hand load Boothroyd time 8.00 48.24
Masking Number of points masked 0.30 170.00
Final test Test time 10.00 10.00

Presented below are a number of balance sheet items for Montoya, Inc. for 2014.

Goodwill $127,970
Accumulated Depreciation-Equipment $292,260
Payroll Taxes Payable 180,561
Inventory 242,770
Bonds payable 302,970
Rent payable (short-term) 47,970
Discount on bonds payable 15,260
Income taxes payable 101,332
Cash 362,970
Rent payable (long-term) 482,970
Land 482,970
Common stock, $1 par value 202,970
Notes receivable 448,670
Preferred stock, $10 par value 152,970
Notes payable (to banks) 267,970
Prepaid expenses 90,890
Accounts payable 492,970
Equipment 1,472,970
Retained earnings ?

Required:
Prepare a balance sheet in good form. Common stock authorized was 400,000 shares, and preferred stock authorized was 20,000 shares. Assume that notes receivable and notes payable are short-term, unless stated otherwise. Cost and fair value of equity investments (trading) are the same.

Based on your reading of the following, choose the best answer to the question. The KittyKarry Company manufactures carriers for cats as well as cat toys and other products (for example, grooming products) for the discerning feline. The company wishes to expand its line of products and has decided to set up focus groups of feline owners to learn more about what kinds of products they might want or need for their cats. The focus groups are part of which stage in the formal process of product development?

A. generate ideas
B. screen ideas
D. develop the concept
E. market and sell the product

9. In cell B15, enter a formula that uses the IF function and tests whether the total sales for Q1 (cell B8) is greater than or equal to 1000000. If the condition is true, multiply the total sales for Q1 by 0.18 to calculate a commission of 18%. If the condition is false, multiply the total sales for Q1 by 0.10 to calculate a commission of 10%.

discuss its impact on small businesses and startup opportunities​

Aisha's organization uses special performance tests, which are then supplemented by other appraisal methods. Why would her firm use these types of tests

what are right? Explain your answer ​

Kyle is a college student who works during the summer to pay for tuition. Last summer he worked at a fast-food restaurant and earned $2,500. This summer he is working as a painter and will earn $4,000. To do the painting job, Kyle had to spend $200 on supplies. What is Kyle's accounting profit

The economic burden of a tax:

a
is always shifted to consumers through higher prices.
b
is partially shifted to consumers through higher prices in most cases.
c
is rarely shifted to consumers through higher prices.
d
falls on sellers if the statutory burden of the tax is on sellers.

A review of the ledger of Marin Inc. at December 31 produces the following data for the preparation of annual adjusting entries:

1. Salaries and Wages Payable, $0. There are 8 salaried employees. 5 employees receive a salary of $1,150 each per week, and 3 employees earn $690 each per week. Employees do not work weekends. All employees worked two days after the last pay period and before December 31.
2. Unearned Rent Revenue, $349,860. The company began leasing condos in its new building on November 1. Each tenant has to make a $5,340 security deposit that is not refundable until occupancy is ended. At December 31, the company had the following rental contracts that were paid in full for the entire term of the lease:

Date Term (in months) Monthly Rent Number of Leases

Nov. 1 6 $3,940 6
Dec. 1 6 $10,370 4

Prepaid Advertising, $16,560. This balance consists of payments on two advertising contracts. The contracts provide for monthly advertising in two trade magazines. The terms of the contracts are as follows:

Contract Date Amount Number of magazines Issues
A650 May 1 $6,960 12
B974 Oct. 1 9,600 24

The first advertisement runs in the month in which the contract is signed.

4. Notes Payable, $78,480. This balance consists of a one year, 8%, note that is dated June 1.

Required:
Marin is preparing for a meeting with potential investors. What is the net effect of the adjusting entries on net income?

The inflation rate over the past year was 4.2 percent. If an investment had a real return of 9.4 percent, what was the nominal return on the investment?

Here are data on two stocks, both of which have discount rates of 8%: Stock A Stock B Return on equity 8 % 5 % Earnings per share $ 2.60 $ 1.80 Dividends per share $ 1.30 $ 1.30 a. What are the dividend payout ratios for each firm? (Enter your answers as a percent rounded to 2 decimal places.) b. What are the expected dividend growth rates for each stock? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) c. What is the proper stock price for each firm? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

In fishing, a career education often comes from which of the following?

A: College classes
B: On-site training
C: Vocational school

Matthews Delivery Service, Inc., completed the following transactions during its first month of operations for January 2012:

a. Matthews Delivery Service, Inc., began operations by receiving $6,000 cash and a truck valued at $11,000. The business issued common stock to aquire these assets.
b. Paid $300 cash for supplies.
c. Prepaid insurance, $700.
d. Performed delivery services for a customer and received $800 cash.
e. Completed a large delivery job, billed the customer $1,500, and received apromise to collect the $1,500 within one week.
f. Paid employee salary, $700.
g. Received $12,000 cash for performing delivery services.
h. Collected $600 in advance for delivery service to be performed later.
i. Collected $1,500 cash from a customer on account.
j. Purchased fuel for the truck, paying $200 with a company credit card. (CreditAccounts payable)
k. Performed delivery services on account, $900.l.Paid office rent, $600. This rent is not paid in advance.
m. Paid $200 on account.
n. Paid cash dividends of $2,100.

Required:

a. Record each transaction in the journal.
b. Post the transactions that you recorded in Requirement 1 in the T-accounts.
c. Write the trial balance for the month ended January 31, 2012.

Recruitment sources are unlimited; therefore, an organization must decide how to reach the best sources of potential employees. Sources of recruitment include: internal and external sources, direct applicants, referrals, advertisements, electronic recruiting, public and private employment agencies, and colleges and universities. Evaluating the quality of recruiting sources can be done by compiling yield ratios that express the percentage of applicants who successfully move from one stage of the recruitment and selection process to another. In this exercise, please read the mini-case and answer the questions that follow. A large Midwestern university is opening a regional branch about an hour away from its main campus. Labor projections suggest that the company will need to hire about 200 new employees to fill cleaning, maintenance, security, and cafeteria entry-level positions. Because of traffic and bad winter weather, it is unlikely that many of the university's current staff will want to transfer to the regional branch. Most of the openings are for hands-on, manual labor jobs that do not require a college education, extensive computer skills, or office experience. The university would like to minimize the cost of its recruiting efforts.

1. Which of the following recruitment sources should the university use to fill its 200 positions?

a. Newspaper advertising
b. Colleges and universities
c. Electronic recruiting

2. Which of the following recruitment sources should the university avoid using to hire for its entry-level positions?

a. Referrals
b. Headhunters
c. External sources

Todd keeps meaning to open a savings account and deposit a small portion of each paycheck, just in case he has an emergency and needs extra cash. But he just hasn’t gotten around to it yet. Todd’s car breaks down on the way home from work. His mechanic tells him that it will cost about $1,200 to get the car running again. Todd needs his car to get to and from work. He just got paid so he uses most of the money from his paycheck to get his car fixed. If you were Todd, in the short term, what would you do about your present financial situation?

Consider the market for cars. Which determinant of supply is affected by each of the following events? a. A steel tariff increases the price of steel. Number of sellers Prices of inputs Prices of related goods Technology Expectations b. Improvements in robotics increase efficiency and reduce costs. Prices of related goods Technology Prices of inputs Number of sellers Expectations c. Factories close because of an economic downturn. Technology Prices of related goods Number of sellers Expectations Prices of inputs d. The government announces a plan to offer tax rebates for the purchase of commuter rail tickets. Number of sellers Prices of related goods Prices of inputs Expectations Technology e. The price of trucks falls, so factories produce more cars. Technology Number of sellers Prices of inputs Expectations Prices of related goods f. The government announces that it will dramatically rewrite efficiency standards, making it much harder for automakers to produce their cars. Prices of inputs Prices of related goods Expectations Technology Number of sellers

In an efficient market, the price of a security will: _____________

a. always rise immediately upon the release of new information with no further price adjustments related to that information.
b. eact to new information over a two-day period after which time no further price adjustments related to that information will occur.
c. rise sharply when new information is first released and then decline to a new stable level by the following day.
d. react immediately to new information with no further price adjustments related to that information.

You take $100 you had kept under your mattress and deposit it in your bank account. If this $100 stays in the banking system as reserves and if banks hold reserves equal to 10 percent of deposits, by how much does the total amount of deposits in the banking system increase

Which of the following is most likely to occur as you add randomly selected stocks to your portfolio, which currently consists of 3 average stocks?a. The expected return of your portfolio is likely to decline.b. The diversifiable risk of your portfolio will likely decline, but the expected market risk should not change.c. Both the diversifiable risk and the market risk of your portfolio are likely to decline.d. The total risk of your portfolio should decline, and as a result, the expected rate of return on the portfolio should also decline.e. The diversifiable risk will remain the same, but the market risk will likely decline.

Discuss any five reason why corporate and business organization are now taking a keen interest in environment issue.
​

Question 14 of 20 :
Select the best answer for the question.
14. Export management companies
A.import as well as export.
B. handle all aspects of exporting, for a percentage fee of the business.
C.only do consulting work.
D. work on flat fees per month.

Lori Nichols started an engineering firm, Engineering Enterprises P.C. During its first month of operations, the following transactions were completed:I.Lori invested $33,000 in the business, which in turn issued common stock to her.II.The business purchased equipment on account for $6000.III.The business provided engineering services on account, $12,000.IV.The business paid salaries to the receptionist, $4000.V.The business received cash from a customer as payment on account $7000.VI.The business borrowed $9000 from the bank, issuing a note payable.At the end of the month, cash equals:$45,000$38,000$33,000$71,000