Question
On 1-1-2020, the statements of financial position of companies A & B, both in book values and fair values, appeared as below: A B Book
On 1-1-2020, the statements of financial position of companies A & B, both in book values and fair values, appeared as below:
A
B
Book
fair
book
fair
Cash
80000
80000
13000
11000
Other current assets
160000
170000
45000
54000
Equipments
70000
50000
20000
22000
accumulated depreciation equipments
-10000
Lands
30000
10000
5000
13000
Total Assets
330000
310000
83000
100000
Liabilities
100000
100000
15000
10000
capital - common stocks
150000
50000
Other contributed capital
50000
18000
retained earnings
30000
0
Total liabilities & equities
330000
83000
On the same date, company C was established with a capital of JD 700000 paid in cash. Company C acquired the net assets of company A for JD 250000. Also it acquired the net assets of company B for JD 150000. It incurred JD 40000 legal & accounting fees paid in cash.
Question 11 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text The entry to record this consolidation expenses is:
Other contributed capital 40000
Cash 40000
Cash 40000
Professional fees 40000
Professional fees 40000
Cash 40000
Investment 40000
Cash 40000
Question 12 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text T he entry of acquiring companies "A & B" is:
Cash 400000
Investment 400000
Cash 700000
Capital 700000
Investment 700000
Cash 700000
Investment 400000
Cash 400000
Question 13 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text This kind of business combination can be expressed as :
A + B = C
A + B = B
A + B = A
A + B = A + B + Consolidated financial statements
Question 14 Answer saved Marked out of 1.00 Not flaggedFlag question Question text cash balance on "C" Companys balance sheet immediately after this merger is:
351000
260000
700000
791000
Question 15 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text Retained earnings balance on "C " Companys balance sheet immediately after this merger is:
660000
40000
(40000)
30000
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
14th Edition
978-0132960649, 132960648, 132109174, 978-0132109178
