subject
Business, 06.12.2019 19:31 Shadow0202

Lo company purchased 85% of the outstanding common stock of serena company on december 31, 20| $310,000 cash. on that date, serena company's stockholders' equity consisted of the following: poco company 14, for common stock other contributed capital retained earnings $240,000 55,000 50,000 $345,000 during 2017, serena company distributed a dividend in the amount of $12,000 and at year-end reporteda net loss of $10,000. during the time that poco company has held its investment in serena company, serena company's retained earnings balance has decreased $29,500 to a net balance of $20.500 after closing on december 31, 2017. serena company did not declare or distribute any dividends in 2015 or 2016. the difference between book value and the value implied by the purchase price relates to goodwill. required: a. assume that poco company uses the equity method. prepare in general journal form the entries needed in the preparation of a consolidated statements workpaper on december 31, 2017. explain why the partial and com- plete equity methods would result in the same entries in this instance. b. assume that poco company uses the cost method. prepare in general journal form the entries needed in the prege ration of a consolidated statements workpaper on december 31,2017 176

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 19:40
Bear, inc. estimates its sales at 200,000 units in the first quarter and that sales will increase by 20,000 units each quarter over the year. they have, and desire, a 25% ending inventory of finished goods. each unit sells for $35. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. the remainder is received in the quarter following sale. cash collections for the third quarter are budgeted at
Answers: 3
question
Business, 21.06.2019 23:00
Each of the four independent situations below describes a sales-type lease in which annual lease payments of $12,500 are payable at the beginning of each year. each is a finance lease for the lessee. (fv of $1, pv of $1, fva of $1, pva of $1, fvad of $1 and pvad of $1) (use appropriate factor(s) from the tables provided.) situation 1 2 3 4 lease term (years) 3 3 3 3 asset’s useful life (years) 3 4 4 6 lessor’s implicit rate (known by lessee) 14 % 14 % 14 % 14 % residual value: guaranteed by lessee 0 $ 5,000 $ 2,500 0 unguaranteed 0 0 $ 2,500 $ 5,000 purchase option: after (years) none 2 3 3 exercise price n/a $ 7,500 $ 1,500 $ 3,500 reasonably certain? n/a no no yes
Answers: 1
question
Business, 22.06.2019 02:30
Witch is an example of a non durable good?
Answers: 1
question
Business, 22.06.2019 06:00
Cash flow is often a problem for small businesses. how can an entrepreneur increase cash flow? a) locate lower-priced suppliers. b) forego sending in estimated tax payments to the irs c) shorten the terms on a bank loan to pay it off more quickly d) sell more low-margin items.
Answers: 1
You know the right answer?
Lo company purchased 85% of the outstanding common stock of serena company on december 31, 20| $310,...
Questions
question
Mathematics, 11.03.2020 02:44
question
Mathematics, 11.03.2020 02:44