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Austin, Inc., acquired 10 percent of McKenzie Corporation on January 1, 2014, for $247,700 although McKenzie's book value on that date was $2,130,000. McKenzie held land that was undervalued by $167,000 on its accounting records. During 2014, McKenzie earned a net income of $323,000 while declaring and paying cash dividends of $121,000. On January 1, 2015, Austin purchased an additional 30 percent of McKenzie for $762,570. McKenzie's land is still undervalued on that date, but then by $191,900. Any additional excess cost was attributable to a trademark with a 10-year life for the first purchase and a 9-year life for the second. The initial 10 percent investment had been maintained at cost because fair values were not readily available. The equity method will now be applied. During 2015, McKenzie reported income of $387,000 and declared and paid dividends of $145,000. Prepare all of the 2015 journal entries for Austin. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1.Record the second acquisition of McKenzie stock. 2.Record the restated reported figures for 2014 to the equity method. 3.Record the income for the year 2015. 4.Record the dividend declaration from McKenzie for the year 2015. 5.Record the collection of dividend from investee for the year 2015. 6.Record the 2015 amortization for first and second purchases
Kathy owns and operates a grocery store as a sole proprietor. She pays wages to her husband Joe and their 17-year-old daughter Marla, both of whom work at the store. Should Kathy withhold FICA taxes FICA taxes from the wages paid to Joe and Marla?
Prepare a contribution margin income statement for the month with two columns: in the first column, show the resultsfollowing Paul's decision rule.
Which of the following statements is NOT correct concerning the Cash Budget?
Identify weaknesses in current procedures, and explain the threats that they may allow to occur and suggest ways to improve the Kowal Manufacturing Company's internal controls over hiring and payroll processing.
Phil is advised by his family physician that his dependent son, Tony, needs surgery for a benign tumor in his leg. Phil and his son travel to Rochester, Minnesota, for in-patient treatment at the Mayo Clinic, which specializes in this type of surg..
The following accounts were included on Megan's Style Consultants adjusted trial balance at December 31, 2010: What are total current assets?
The direct method might be easier to understand but it is also more expensive and more time consuming for the company why is that? and Whats the best method to use for businesses?
Assume that COGS is a variable cost and that operating expenses are a fixed cost. What is budgeted operating income for 20X9?
Sosmer Co. had these transactions during the current period. Prepare the journal entries for the transactions.
The concept of materiality is important in the context of auditing. Materiality is a function of the time, the situation, and the people involved. What is material from the point of view of a bank that lends money to the firm?
Who would you say benefits more when a company prepares accurate and truthful financial statements?
In addition, the controller is aware of $10,000 of inventory that was stolen during August from one of the company's warehouses. Calculate the estimated inventory at the end of August, assuming a markup on cost of 25%.
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