Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

problem1)

Glaser Services acquired 30% of the outstanding common stock of Nickels Company on January 1, 2008, by paying $864,180 for the 48,010 shares. Nickels declared and paid $0.50 per share cash dividends on March 15, June 15, September 15, and December 15, 2008. Nickels reported net income of $337,500 for the year. At December 31, 2008, the market price of Nickels common stock was $26 per share.

a) Make the journal entries for Glaser Services for 2008 assuming Glaser cannot exercise significant influence over Nickels. (Utilize the cost method and suppose that Nickels common stock must be classified as a trading security.)

b) Make the journal entries for Glaser Services for 2008, assuming Glaser could exercise significant influence over Nickels. Utilize equity method.

problem2)

On January 1, 2010, Yadier Inc. had following stockholders' equity account balances.

Common Stock, no-par value (549,000 shares issued)    $2,745,000

Common Stock Dividends Distributable                              248,000

Retained Earnings                                                            637,000

During 2010, the following transactions and events occurred.

1. Issued 60,390 shares of common stock as a result of a 11 % stock dividend declared on December 15, 2009.

2. Issued 34,000 shares of common stock for cash at $6 per share.

3. Corrected an error that had understated the net income for 2008 by $71,000.

4. Declared and paid a cash dividend of $82,000.

5. Earned net income of $311,000.

Instructions

Make the stockholders' equity section of th balance sheet at December 31, 2010.

problem3)

Condensed financial data of Arma Inc. follow.
ARMA INC.
Comparative Balance Sheets
December 31

Assets                                                                  2010            2009
Cash                                                                  $ 89,698         $ 48,775
Accounts receivable                                                92,105          33,075
Inventories                                                          111,682         101,445
Prepaid expenses                                                   28,666          25,823
Investments                                                        138,310         114,847
Plant assets                                                         269,072         241,462
Accumulated depreciation                                     (49,221)         (51,996)
     Total                                                             $680,312         $513,431

Liabilities and Stockholders' Equity          
Accounts payable                                               $111,938         $ 67,029
Accrued expenses payable                                     16,297            17,388
Bonds payable                                                     120,530         149,070
Common stock                                                    219,380         175,080
Retained earnings                                                212,167         104,864
     Total                                                             $680,312         $513,431

ARMA INC.
Income Statement
For the Year Ended December 31, 2010
Sales                                                                                       $392,246
Less:               
   Cost of goods sold                                         $134,290          
   Operating expenses, excluding depreciation         11,729          
   Depreciation expense                                        46,322          
   Income taxes                                                   26,970          
   Interest expense                                                4,692          
   Loss on sale of plant assets                                6,711           230,714
Net income                                                                             $161,532

Additional information:

1. New plant assets costing $84,600 were purchased for cash during the year.

2. Old plant assets having an original cost of $56,990 were sold for $1,182 cash.

3.  Bonds matured and were paid off at face value for cash.

4. Cash dividend of $54,229 was declared and paid during the year.

Instructions

Make a statement of cash flows using indirect method. (Name multiple entries with positive cash flow first and then negative cash flow. Name amounts from largest to smallest like, 10, 5, 3, 2. If amount decreases cash flow, use either the negative sign preceding the number like, -45 or parentheses like (45).)

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91754

Have any Question? 


Related Questions in Accounting Basics

Exercise 1north company has completed all of its operating

Exercise 1 North Company has completed all of its operating budgets. The sales budget for the year shows 50,120 units and total sales of $2,128,200. The total unit cost of making one unit of sales is $22. Selling and adm ...

Consider that a company has excess cash flow google is a

Consider that a company has excess cash flow. Google is a good one to look at. Google invests in short term securities to earn something on the cash. What is another way the cash could be used to create wealth for the in ...

Please answer the following question analysis needed with

Please answer the following question. Analysis needed with explanation. Use in-text citation and reference page if necessary in APA format. Answers should be must be plagiarism free. Zaldor Corporation sells a specialize ...

Accounting discussion questionaccounts receivable bad debt

Accounting Discussion Question "Accounts Receivable Bad Debt Expense (Direct Write Off Method Vs Allowance Method)": • Discuss the primary advantages and disadvantages of applying the direct write-off over the allowance ...

Accounting discussionbulldiscuss the advantages of

Accounting Discussion • Discuss the advantages of understanding accounting as it relates to your current or future position. (Consider careers in management, sales, business operations, finance, and business ownership.)

Accountingthe accepted microsoft office versions for this

Accounting The accepted Microsoft Office versions for this assignment are Microsoft Office 2013 (for PC) and Microsoft Office for Mac 2011 (for Macintosh). Students may use a more recent version if available. Select a pe ...

Sandy alomar corp prepare two schedules for inventory costs

Sandy Alomar Corp., Prepare two schedules for inventory costs under LIFO and FIFO You are vice-president of finance of Sandy Alomar Corp., a retail company that prepared 2 different schedules of gross margin for the firs ...

Assignmentthe company that i chose to research came to me

Assignment The company that I chose to research came to me on the way home from work this week while sitting in traffic. A string of several ads came on the radio and got a little frustrated that my Christmas tunes were ...

Analyze tootsie rolls 2015 consolidated statements of

Analyze Tootsie Roll's 2015 Consolidated Statements of Earnings and Retained Earnings. Discuss the relevance for a manufacturer of reporting a gross profit amount. Then calculate or report the 2015 Gross Profit Rate (%) ...

Current designsas a service to its customers current

CURRENT DESIGNS As a service to its customers, Current Designs repairs damaged kayaks. This is especially valuable to customers that have made a significant investment in the composite kayaks. To price the repair jobs, C ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

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