Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Cost Accounting Expert

problem: Bon Air, Inc., acquired 70% (2,800 shares) of the outstanding voting stock of Creedmoor Corporation on January 1, 2004, for dollar 250,000 cash Creedmoor's net assets on that date totaled $230,000, but this balance included three (3) accounts having fair values that differed from their book values:

 

Book Value

Fair Value

Land .............................................................................

$30,000

mce_markernbsp; 40,000

Equipment (14-year life) ................................................

50,000

118,000

Liabilities (10-year life) .................................................

(70,000)

(50,000)

 

 

          Bon Air

Creedmoor

Revenues

mce_markernbsp;  (694,800)

$(250,000)

Operating expenses

            630,000

180,000

Investment income

      (44,200)

               -0-

Net income

 mce_markernbsp; (109,000)

 mce_markernbsp; (70,000)

Retained earnings, 1/1/07

mce_markernbsp;  (760,000)

$(260,000)

Net income

(109,000)

     (70,000)

Dividends paid

68,000

        10,000

Retained earnings, 12/31/07

 mce_markernbsp; (801,000)

 $(320,000)

Current assets

mce_markernbsp;   72,000

mce_markernbsp; 120,000

Investment in Creedmoor Corp

321,800

-0-

Land

241,000

50,000

Buildings (net)

289,000

200,000

Equipment (net)

       165,200

       40,000

Total assets

 $ 1,089,000

 mce_markernbsp; 410,000

Liabilities

mce_markernbsp;  (180,000)

mce_markernbsp;   (50,000)

Common stock

(50,000)

(40,000)

Additional paid-in capital

(58,000)

-0-

Retained earnings, 12/31/07

      (801,000)

   (320,000)

Total liabilities and equities

 $(1,089,000)

 $(410,000)

Consolidated financial statements are being prepared on December 31, 2007. What balance should be reported for each of the following accounts?

Operating Expenses

No controlling Interest in Creedmoor's Net Income

Revenues

Retained Earnings, 1/1/07

Equipment

Liabilities

Common Stock

Net Income

Dividends Paid

Land

Retained Earnings, 12/31/07

No controlling Interest in Creedmoor, 12/31/07

Cost Accounting, Accounting

  • Category:- Cost Accounting
  • Reference No.:- M922366

Have any Question? 


Related Questions in Cost Accounting

Final project milestone three guidelinesoverview

Final Project Milestone Three Guidelines Overview: Classifying a company's costs allows for an in-depth analysis of the impact that changes in output have on revenues, costs, and net income or net loss. A cost-volume-pro ...

For your assignment you will apply the fundamental concepts

For your Assignment, you will apply the fundamental concepts of accounting and finance that you are studying to complete several problems indicative to real-world business scenarios and challenges. For this Assignment, t ...

Problem 1 master budgetomega inc has developed the

Problem 1: Master Budget Omega, Inc. has developed the following sales forecast for the first six months of the coming year Month Sales (in units) January 30,000 February 50,000 March 70,000 April 80,000 May 60,000 June ...

Cost accounting- little debbie brownieshere is a copy of

Cost Accounting- Little Debbie Brownies Here is a copy of the assignment. My snack of choice is the Little Debbie Fudge Brownies Comprehensive Product Costing Select your favorite drink or snack item manufactured by a pu ...

Question 1pringle company distributes a single product the

Question 1. Pringle Company distributes a single product. The company's sales and expenses for a recent month follow:   Total    Per Unit   Sales $ 300,000   $ 20        Variable expenses   210,000     14          Contri ...

Accounting assignment1 punch products inc is considering

Accounting Assignment 1. Punch Products, Inc. is considering purchasing a new production machine and has assembled the following information from two vendors of the machine that it is considering buying:   A Products B P ...

Module 3 - slpstrategic choicessimulationin module 3 you

Module 3 - SLP Strategic Choices SIMULATION In Module 3, you will use CVP analysis to inform the pricing of your 3 products. SCENARIO CONTINUATION: You've now completed SLP2, and it the date is (once again) January 1, 20 ...

Cost accountingquestion 1 which of the following statements

Cost Accounting Question 1. Which of the following statements regarding differential costs is (are) false? (A). The full cost fallacy occurs when a decision-maker fails to include fixed manufacturingoverhead in the produ ...

Company expansion - internationallocate the financial

Company Expansion - International Locate the financial information for a company that has only domestic manufacturing operations. Assume management desires to expand into the global market with its current products. The ...

Assignment- show the step by step solutions to the

Assignment- Show the step by step solutions to the following questions: I. A firm is able to sell 10,000 units at $ 12 per piece. The company fixed cost is $30,000. Variable cost is $6 per unit. 1. What is the contributi ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen