{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-28T07:50:20-04:00", "answer_date": "2024-06-28 07:50:20", "is_docs_available": null, "is_excel_available": null, "is_pdf_available": null, "count_file_available": 0, "main_page": "student_question_view", "question_id": "4267025", "url": "\/study-help\/questions\/i-need-to-solve-these-questions-please-as-soon-as-4267025", "question_creation_date_js": "2024-06-28T07:50:20-04:00", "question_creation_date": "Jun 28, 2024 07:50 AM", "meta_title": "[Solved] I need to solve these questions please as | SolutionInn", "meta_description": "Answer of - I need to solve these questions please as soon as possible ACCT 405 Advanced Financial Accounting Student Name: Studen | SolutionInn", "meta_keywords": "solve,questions,acct,405,advanced,financial,accounting,student,id,fall,2013,american", "question_title_h1": "I need to solve these questions please as soon as possible ACCT 405 Advanced Financial Accounting Student Name: Student ID: Fall 2013 The American University", "question_title": "I need to solve these questions please as soon as possible ACCT", "question_title_for_js_snippet": "I need to solve these questions please as soon as possible ACCT 405 Advanced Financial Accounting Student Name Student ID Fall 2013 The American University of Kuwait College of Business and Economics Question 1 (8 points) Parrot Corporation acquired 80 of Hollow Co on January 1, 2005 for $24,000 cash when Hollow's stockholders' equity consisted of $10,000 of Common Stock and $3,000 of Retained Earnings The difference between the price paid by Parrot and the underlying equity acquired in Hollow was allocated solely to a patent amortized over 10 years The separate company statements for Parrot and Hollow appear in the first two columns of the partially completed consolidation working papers Required Complete the consolidation working papers for Parrot and Hollow for the year 2005 1 Parrot Corporation and Subsidiary Consolidated Balance Sheet Working Papers at December 31, 2005 Eliminations Debit Credit Parrot Hollow INCOME STATEMENT Sales 20,000 $ Income of Hollow 3,680 Cost of Sales Other Expenses Net income Retained Earnings 1 1 Add Net income Less Dividends Retained Earnings 12 31 BALANCE SHEET Cash Accounts Receivable net $15,000 ( ( 9,200) ( 2,300) ( 4,700) 4,000) 12,180 11,000 3,000 12,180 ( 6,300 6,300 3,000) ( 2,000) 20,180 $ 7,300 2,000 1,900 12,000 5,500 Inventories 14,000 8,000 Land PPE Investment in Hollow Co TOTAL ASSETS 27,000 60,000 42,000 43,000 $ 26,080 $ 141,080 $100,400 90,900 TOTAL LIAB EQUITY 83,100 30,000 20,180 Accounts payable Capital Stock Retained Earnings 10,000 7,300 $ 141,080 $100,400 NonCntl Consolidated ACCT 405 Advanced Financial Accounting Student Name Student ID Fall 2013 The American University of Kuwait College of Business and Economics Question 2 (12 points) Tern Corporation acquired an 80 interest in Harbor Corporation several years ago when Harbor's book values and fair values were equal Separate company income statements for Tern and Harbor for the year ended December 31, 2005 are summarized as follows Sales Revenue Income from Harbor Cost of Goods Sold Expenses Net Income $ ( ( $ Tern 1,000,000 $ 80,000 600,000 )( 200,000 )( 280,000 $ During 2004, one company sold merchandise to $180,000 which cost the transferor $120,000 Half remained in unsold at December 31, 2004 During company sold merchandise that cost $150,000 to $225,000 One third of this merchandise remained 31, 2005 inventory Harbor 600,000 300,000 ) 200,000 ) 100,000 other company for of this merchandise 2005, again other other company for unsold at December Required 1 If the sale referred to above was a downstream sale, the consolidated net income reported in the consolidated income statement for 2005 would be (show solution calculations) 2 If the sale referred to above was a downstream sale, by what amount must Inventory be reduced to reflect the correct balance as of the end of 2004 3 3 Refer to requirements 1 and 2 above and record the eliminating entries on the working paper for the year 2005 4 Prepare a consolidated income statement for Tern Corporation and Subsidiary for 2005 assuming that Tern sold merchandise to Harbor in both 2004 and 2005 5 What is the value of the investment in Harbor that be reported by Tern Corporation if the sales in both years 2004 and 2005 were upstream Question 3 (8 points) On November 1, 20X3, the Penguin Corporation, a US corporation, sold a machine from Shearwater Corporation, a UK company The selling price was $9,600 (6000) and Shearwater agreed to pay in pounds on February 1, 20X4 Both corporations are on a calendar year accounting period Assume that the spot rates for the British pound on November 1, 20X3 $1 60 December 31, 20X3 $1 66 February 1, 20X4 $1 64 ACCT 405 Advanced Financial Accounting Student Name Student ID Fall 2013 The American University of Kuwait College of Business and Economics Required 1 Record the December 31, and February 1 transactions in the General Journals of Shearwater Corporation General Journals Entries Date 31 12 20x3 1 02 20x4 2 Record the November 1, December 31, and February 1 transactions in the General Journals of Penguin Corporation General Journals Entries Date 1 11 20x3 31 12 20x3 1 02 20x4 5 Question 4 (16 points) Romero Corporation, a US corporation, formed a British subsidiary on January 1, 2007 by investing 550,000 in exchange for all the subsidiary's no par common stock The British subsidiary, York Corporation, purchased real property on April 1, 2007 at a cost of 500,000, with 100,000 allocated to land and 400,000 allocated to a building The building is depreciated over a 40 year estimated useful life on a straight line basis with no salvage value The US dollar is York's functional currency but it keeps its records in pounds York's net income for the 2007 year was 213500 Pound (which equivalent 322300 Dollar) and no dividend was announced in 2007 York has now ended its second year of operations on December 31, 20X8 Relevant exchange rates are January 01, 20X7 1 $1 40 April 01, 20X7 1 $1 42 December 31, 20X8 1 $1 37 20X8 average rate 1 $1 36 York's adjusted trial balance is presented below for the calendar year 20X8 In Pounds Debits Cash 172,000 Accounts receivable 308,000 Notes receivable 98,000 Building 400,000 Land 100,000 Depreciation expense 10,000 Other expenses 117,000 Salary expense 376,000 Total debits 1,581,000 Credits Accumulated depreciation Accounts payable Common stock Retained earnings Sales revenue Total credits 17,500 200,000 550,000 213,500 600,000 1,581,000 ACCT 405 Advanced Financial Accounting Student Name Student ID Fall 2013 The American University of Kuwait College of Business and Economics Required Prepare York's 1 Translation working papers (complete the above table) 2 Translated income statement 3 Translated balance sheet 7", "question_description": "

I need to solve these questions please as soon as possible<\/p>

\"image<\/div><\/div><\/div> ACCT 405 Advanced Financial Accounting Student Name: Student ID: Fall 2013 The American University of Kuwait College of Business and Economics Question 1 (8 points) Parrot Corporation acquired 80% of Hollow Co. on January 1, 2005 for $24,000 cash when Hollow's stockholders' equity consisted of $10,000 of Common Stock and $3,000 of Retained Earnings. The difference between the price paid by Parrot and the underlying equity acquired in Hollow was allocated solely to a patent amortized over 10 years. The separate company statements for Parrot and Hollow appear in the first two columns of the partially completed consolidation working papers. Required: Complete the consolidation working papers for Parrot and Hollow for the year 2005. 1 Parrot Corporation and Subsidiary Consolidated Balance Sheet Working Papers at December 31, 2005 Eliminations Debit Credit Parrot Hollow INCOME STATEMENT Sales 20,000 $ Income of Hollow 3,680 Cost of Sales Other Expenses Net income Retained Earnings 1\/1 Add: Net income Less: Dividends Retained Earnings 12\/31 BALANCE SHEET Cash Accounts Receivable-net $15,000 ( ( 9,200) ( 2,300) ( 4,700) 4,000) 12,180 11,000 3,000 12,180 ( 6,300 6,300 3,000) ( 2,000) 20,180 $ 7,300 2,000 1,900 12,000 5,500 Inventories 14,000 8,000 Land PPE Investment in Hollow Co. TOTAL ASSETS 27,000 60,000 42,000 43,000 $ 26,080 $ 141,080 $100,400 90,900 TOTAL LIAB. & EQUITY 83,100 30,000 20,180 Accounts payable Capital Stock Retained Earnings 10,000 7,300 $ 141,080 $100,400 NonCntl. Consolidated ACCT 405 Advanced Financial Accounting Student Name: Student ID: Fall 2013 The American University of Kuwait College of Business and Economics Question 2 (12 points): Tern Corporation acquired an 80% interest in Harbor Corporation several years ago when Harbor's book values and fair values were equal. Separate company income statements for Tern and Harbor for the year ended December 31, 2005 are summarized as follows: Sales Revenue Income from Harbor Cost of Goods Sold Expenses Net Income $ ( ( $ Tern 1,000,000 $ 80,000 600,000 )( 200,000 )( 280,000 $ During 2004, one company sold merchandise to $180,000 which cost the transferor $120,000. Half remained in unsold at December 31, 2004. During company sold merchandise that cost $150,000 to $225,000. One-third of this merchandise remained 31, 2005 inventory. Harbor 600,000 300,000 ) 200,000 ) 100,000 other company for of this merchandise 2005, again; other other company for unsold at December Required: 1- If the sale referred to above was a downstream sale, the consolidated net income reported in the consolidated income statement for 2005 would be (show solution calculations): 2. If the sale referred to above was a downstream sale, by what amount must Inventory be reduced to reflect the correct balance as of the end of 2004? 3 3. Refer to requirements 1 and 2 above and record the eliminating entries on the working paper for the year 2005? 4. Prepare a consolidated income statement for Tern Corporation and Subsidiary for 2005 assuming that Tern sold merchandise to Harbor in both 2004 and 2005. 5- What is the value of the investment in Harbor that be reported by Tern Corporation if the sales in both years 2004 and 2005 were upstream? Question 3 (8 points) On November 1, 20X3, the Penguin Corporation, a US corporation, sold a machine from Shearwater Corporation, a UK company. The selling price was $9,600 (6000) and Shearwater agreed to pay in pounds on February 1, 20X4. Both corporations are on a calendar year accounting period. Assume that the spot rates for the British pound on November 1, 20X3: $1.60 December 31, 20X3: $1.66 February 1, 20X4: $1.64 ACCT 405 Advanced Financial Accounting Student Name: Student ID: Fall 2013 The American University of Kuwait College of Business and Economics Required: 1- Record the December 31, and February 1 transactions in the General Journals of Shearwater Corporation: General Journals Entries Date 31\/12\/20x3 1\/02\/20x4 2- Record the November 1, December 31, and February 1 transactions in the General Journals of Penguin Corporation: General Journals Entries Date 1\/11\/20x3 31\/12\/20x3 1\/02\/20x4 5 Question 4 (16 points): Romero Corporation, a US corporation, formed a British subsidiary on January 1, 2007 by investing 550,000 in exchange for all the subsidiary's no-par common stock. The British subsidiary, York Corporation, purchased real property on April 1, 2007 at a cost of 500,000, with 100,000 allocated to land and 400,000 allocated to a building. The building is depreciated over a 40-year estimated useful life on a straight-line basis with no salvage value. The US dollar is York's functional currency but it keeps its records in pounds. York's net income for the 2007 year was 213500 Pound (which equivalent 322300 Dollar) and no dividend was announced in 2007. York has now ended its second year of operations on December 31, 20X8. Relevant exchange rates are: January 01, 20X7 = 1 = $1.40 April 01, 20X7 = 1 = $1.42 December 31, 20X8 = 1 = $1.37 20X8 average rate = 1 = $1.36 York's adjusted trial balance is presented below for the calendar year 20X8. In Pounds Debits: Cash 172,000 Accounts receivable 308,000 Notes receivable 98,000 Building 400,000 Land 100,000 Depreciation expense 10,000 Other expenses 117,000 Salary expense 376,000 Total debits 1,581,000 Credits Accumulated depreciation Accounts payable Common stock Retained earnings Sales revenue Total credits 17,500 200,000 550,000 213,500 600,000 1,581,000 ACCT 405 Advanced Financial Accounting Student Name: Student ID: Fall 2013 The American University of Kuwait College of Business and Economics Required: Prepare York's: 1. Translation working papers (complete the above table); 2. Translated income statement; 3. Translated balance sheet. 7", "transcribed_text": "", "related_book": { "title": "Income Tax Fundamentals 2013", "isbn": "1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516", "edition": "31st Edition", "authors": "Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/1124.jpg", "uri": "\/textbooks\/income-tax-fundamentals-2013-31st-edition-9781285586618", "see_more_uri": "" }, "free_related_book": { "isbn": "1491790431", "uri": "\/textbooks\/living-on-the-grid-1st-edition-978-1491790434-290638", "name": "Living On The Grid", "edition": "1st Edition" }, "question_posted": "2024-06-28 07:50:20", "see_more_questions_link": "\/study-help\/questions\/business-economics-2023-September-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/suppose-you-and-two-friends-each-invested-100000-in-an", "description": "Suppose you and two friends each invested $100,000 in an oil and gas partnership. 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