User Account

All Pages

What closing inventory would be reported

Assignment Help Accounting Basics
Reference no: EM132896314

Questions -

Q1. RC Company has a branch in Bohol. During 2016, the home office shipped to the branch merchandise billed at P150,000 including a markup of 20% on cost. The branch reports opening and closing inventories of P90,000 and P120,000, respectively, while the home office has a closing inventories of P210,000 which includes merchandise which are held on consignment valued at P10,000.

Both locations use the periodic inventory system. What closing inventory would be reported in the combined statement of income for the year 2016?

a. 96,000

b. 300,000

c.330,000

d. 320,000

Q2. Parent Company acquired 15% of Subsidiary Company's common stock for P500,000 cash and carried the investment using the cost method. A few months later, Parent purchased another 60% of Subsidiary's stock for P2,160,000. At that date, Subsidiary had identifiable assets of P3,900,000 and a fair value of P5,100,000, and had liabilities with a book value and fair value of P1,900,000. The fair value of the 25% non-controlling interest is P900,000.

The amount of goodwill to be recognized resulting from this combination:

a. 100,000

b. 84,000

c. P400,000

d. P300,000

Reference no: EM132896314

Questions Cloud

What is HK weighted average cost of capital : What is HK's weighted average cost of capital (WACC), assuming its cost of common equity will be determined using the CAPM
List the five functions of advertising : List the five functions of advertising.
Prepare the necessary journal entries from the issuance : Prepare the necessary journal entries from the issuance of the bonds on January 1, 2020 up to its retirement on July 31, 2022
Finding an organization a new location : Would a decision tree be useful for finding an organization a new location? If so, what are the positive and negative outcomes of doing so?
What closing inventory would be reported : Both locations use the periodic inventory system. What closing inventory would be reported in the combined statement of income for the year 2016
Integration of information systems in a global economy : Has the integration of information systems in a global economy helped spark better business techniques. Why or why not?
Why is case topic a wicked problem : 1. Why is the case topic a sustainability issue, and why is it important?
What would be the adjusted cash balance at the end of May : Balance per bank statement $12,488. Customer's note receivable collected by the bank 360. What would be the adjusted cash balance at the end of May
Studying the various motivation theories : Using what you have learned from studying the various motivation theories, what does Patagonia's situation tell you about employee motivation?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Compute the estimated ending inventory under gross profit

St. Paul Corporation has a normal gross profit of 45%. The estimated ending inventory under the gross profit method is

  Record all previous transactions in journal entries

Signed a contract with Face Book to for electronic advertising about Majid's firm; Record all previous transactions in journal entries

  Crispy crust currently owns each of its restaurant sites

crispy crust pizzeria is a privately owned restaurant chain with over 750 locations nationwide. the company has

  What is the contribution margin per unit

Yoni Corporation manufactures skateboards and is in the process of preparing next year's budget. What is the contribution margin per unit

  Prepare the stockholders equity section of the balance sheet

Common stock, $2.50 par value, 1.8 million shares authorized, 1.2 million shares issued, Prepare the stockholders' equity section of the balance sheeet

  Replenishment of petty cash fund

Prepare journal entries - Replenishment of petty cash fund after $50 used for postage and $25 used fo purchase paper for copier.

  What amount of depreciation expense was reported

What amount of depreciation expense was reported on the income statement for the current year? What percentage of net sales is it? Compare this percentage.

  Journalize the adjusting entry to record the depreciation

The estimated amount of depreciation on equipment for the current year is $1,840. Journalize the adjusting entry to record the depreciation.

  Calculate the amount of the interest expense for each option

A borrower has two alternatives for a loan: (1) issue a $660,000, 90-day, Calculate the amount of the interest expense for each option

  Prepare the journal entries required on wild expansion books

Question - Exchange of Assets - Instructions: Prepare the journal entries required on Wild Expansion Co.'s books to record the exchanges

  Lance and wanda dean are married lance works for the

lance and wanda dean are married. lance works for the convention bureau of the local chamber of commerce while wanda is

  Calculate the amount of the asset and liability of sax

The computers have an estimated life of 5 years, a fair value of $300,000, Calculate the amount of the asset and liability of Sax at the inception of the lease

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd