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  Statement of Revenues, Expenditu r es, and Changes in Fund Balance Refer to the preclosing trial balance in Exercise 17-10. Assume that the balances on December 31, 20X0, were as follows: Fund Balance—Assigned for Encumbrances $28,000 Fund Balance—Unassigned 91,000 Required fiscal 20X1. Is this the question you were looking for? If so, place your […]

Fair Value Recognition Kent Company purchased 35 percent ownership of Lomm Company on January 1, 20X8, for $140,000. Lomm reported 20X8 net income of $80,000 and paid dividends of $20,000. At December 31, 20X8, Kent determined the fair value of its investment in Lomm to be $174,000. Required Give all journal entries recorded by Kent […]

Basic Elimination Entry   On December 31, 20X3, Broadway Corporation reported common stock outstanding of $200,000, additional paid-in capital of $300,000, and retained earnings of $100,000. On January 1, 20X4, Johe Company acquired control of Broadway in a business combination. Required Give the elimination entry that would be needed in preparing a consolidated balance sheet […]

Elimination Entries Following Intercompany Sale at a Loss Brown Corporation holds 70 percent of Transom Company’s voting common stock. On January 1, 20X2, Transom paid $300,000 to acquire a building with a 15-year expected economic life. Transom uses straight-line depreciation for all depreciable assets. On December 31, 20X7, Brown purchased the building from Transom for […]

Consolidated Statement of Cash Flows—Direct Method Required Using the data presented in P10-21, prepare a worksheet to develop a consolidated statement of cash flows using the direct method for computing cash flows from operations. P10-21: WEATHERBEE COMPANY AND SUBSIDIARY Consolidated Balance Sheets January 1, 20X6 December 31, 20X6 Cash $ 54,000 $ 75,000 Accounts Receivable […]

Balance Sheet Eliminations (Effective Interest Method) Bath Corporation acquired 80 percent of Stang Brewing Company’s stock on January 1, 20X1, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 20 percent of Stang’s book value. On January 1, 20X1, Stang issued $300,000 par value, 8 percent, 10-year […]

Multiple Transfers of Asset Swanson Corporation purchased land from Clayton Corporation for $240,000 on December 20, 20X3. This purchase followed a series of transactions between Swanson-controlled subsidiaries. On February 7, 20X3, Sullivan Corporation purchased the land from a nonaffiliated for $145,000. It sold the land to Kolder Company for $130,000 on October 10, 20X3, and […]

Consolidated Statement of Cash Flows Sun Corporation was created on January 1, 20X2, and quickly became successful. On January 1, 20X6, its owner sold 80 percent of the stock to Weatherbee Company at underlying book value. At the date of that sale, the fair value of the remaining shares was equal to 20 percent of […]

Consolidated Statement of Cash Flows [AICPA Adapted Following are the consolidated balance sheet accounts of Brimer Inc. and its subsidiary, Dore Corporation, as of December 31, 20X6 and 20X5. 20X6 20X5 Net Increase Assets (Decrease) Cash $ 313,000 $ 195,000 $118,000 Marketable Equity Securities, at cost 175,000 175,000 0 Allowance to Reduce Marketable Equity Securities […]

Correction of Elimination Procedures Plug Corporation purchased 60 percent of Coy Company’s common stock approximately 10 years ago. On January 1, 20X2, Coy sold equipment to Plug for $850,000 and recorded a $150,000 loss on the sale. Coy had purchased the equipment for $1,200,000 on January 1, 20X0, and was depreciating it on a straight-line […]