Question

In: Accounting

Alcorn Service Company was formed on January 1, 2018. Events Affecting the 2018 Accounting Period Acquired...

Alcorn Service Company was formed on January 1, 2018.

Events Affecting the 2018 Accounting Period

  1. Acquired $20,000 cash from the issue of common stock.

  2. Purchased $800 of supplies on account.

  3. Purchased land that cost $14,000 cash.

  4. Paid $800 cash to settle accounts payable created in Event 2.

  5. Recognized revenue on account of $10,500.

  6. Paid $3,800 cash for other operating expenses.

  7. Collected $7,000 cash from accounts receivable.

Information for 2018 Adjusting Entries

  1. Recognized accrued salaries of $3,600 on December 31, 2018.

  2. Had $100 of supplies on hand at the end of the accounting period.

  

Events Affecting the 2019 Accounting Period

  1. Acquired $15,000 cash from the issue of common stock.

  2. Paid $3,600 cash to settle the salaries payable obligation.

  3. Paid $9,000 cash in advance to lease office space.

  4. Sold the land that cost $14,000 for $14,000 cash.

  5. Received $6,000 cash in advance for services to be performed in the future.

  6. Purchased $2,400 of supplies on account during the year.

  7. Provided services on account of $24,500.

  8. Collected $12,600 cash from accounts receivable.

  9. Paid a cash dividend of $2,000 to the stockholders.

  10. Paid other operating expenses of $2,850.

  

Information for 2019 Adjusting Entries

  1. The advance payment for rental of the office space (see Event 3) was made on March 1 for a one-year term.

  2. The cash advance for services to be provided in the future was collected on October 1 (see Event 5). The one-year contract started on October 1.

  3. Had $300 of supplies remaining on hand at the end of the period.

  4. Recognized accrued salaries of $4,800 at the end of the accounting period.

  5. Recognized $500 of accrued interest revenue.

  1. b-1. Prepare an income statement for 2018 and 2019.

  2. b-2. Prepare the statement of changes in stockholders’ equity for 2018 and 2019.

  3. b-3. Prepare the balance sheet for 2018 and 2019.

  4. b-4. Prepare the statement of cash flows for 2018 and 2019, using the vertical statements model

Solutions

Expert Solution


ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Alcorn Service Company was formed on January 1, 2018. Events Affecting the 2018 Accounting Period Acquired...
Alcorn Service Company was formed on January 1, 2018. Events Affecting the 2018 Accounting Period Acquired $72,000 cash from the issue of common stock. Purchased $3,600 of supplies on account. Purchased land that cost $42,000 cash. Paid $3,600 cash to settle accounts payable created in Event 2. Recognized revenue on account of $66,000. Paid $33,000 cash for other operating expenses. Collected $50,000 cash from accounts receivable. Information for 2018 Adjusting Entries Recognized accrued salaries of $4,400 on December 31, 2018....
On January 1, 2018, Pomegranate Company acquired 90% of the voting stock of Starfruit Company for...
On January 1, 2018, Pomegranate Company acquired 90% of the voting stock of Starfruit Company for $91,700,000 in cash. The fair value of the noncontrolling interest in Starfruit at the date of acquisition was $6,300,000. Starfruit’s book value was $13,000,000 at the date of acquisition. Starfruit’s assets and liabilities were reported on its books at values approximating fair value, except its plant and equipment (10-year life, straight-line) was overvalued by $25,000,000. Starfruit Company had previously unreported intangible assets, with a...
On January 1, 2018, Pomegranate Company acquired 90% of the voting stock of Starfruit Company for...
On January 1, 2018, Pomegranate Company acquired 90% of the voting stock of Starfruit Company for $91,700,000 in cash. The fair value of the noncontrolling interest in Starfruit at the date of acquisition was $6,300,000. Starfruit’s book value was $13,000,000 at the date of acquisition. Starfruit’s assets and liabilities were reported on its books at values approximating fair value, except its plant and equipment (10-year life, straight-line) was overvalued by $25,000,000. Starfruit Company had previously unreported intangible assets, with a...
On January 1, 2018, Pomegranate Company acquired 90% of the voting stock of Starfruit Company for...
On January 1, 2018, Pomegranate Company acquired 90% of the voting stock of Starfruit Company for $91,700,000 in cash. The fair value of the noncontrolling interest in Starfruit at the date of acquisition was $6,300,000. Starfruit’s book value was $13,000,000 at the date of acquisition. Starfruit’s assets and liabilities were reported on its books at values approximating fair value, except its plant and equipment (10-year life, straight-line) was overvalued by $25,000,000. Starfruit Company had previously unreported intangible assets, with a...
On January 1, 2018, Pomegranate Company acquired 90% of the voting stock of Starfruit Company for...
On January 1, 2018, Pomegranate Company acquired 90% of the voting stock of Starfruit Company for $91,700,000 in cash. The fair value of the noncontrolling interest in Starfruit at the date of acquisition was $6,300,000. Starfruit’s book value was $13,000,000 at the date of acquisition. Starfruit’s assets and liabilities were reported on its books at values approximating fair value, except its plant and equipment (10-year life, straight-line) was overvalued by $25,000,000. Starfruit Company had previously unreported intangible assets, with a...
P Company acquired the assets and assumed the liabilities of S Company on January 1, 2018,...
P Company acquired the assets and assumed the liabilities of S Company on January 1, 2018, for $510,000 when S Company's balance sheet was as follows: S COMPANY Balance Sheet January 1, 2018 Cash $ 96,000 Receivables 55,200 Inventory 110,400 Land 169,200 Plant and equipment (net)  466,800 Total  $897,600 Accounts payable $  44,400 Bonds payable, 10%, due 12/31/2023, Par 480,000 Common stock, $2 par value 120,000 Retained earnings   253,200 Total  $897,600 Fair values of S Company's assets and liabilities were...
(1) On January 1, 2018, Panorama Company acquired 80% of Scann Corporation for $6,400,000. At the...
(1) On January 1, 2018, Panorama Company acquired 80% of Scann Corporation for $6,400,000. At the time of the acquisition, the book value of Scann's assets and liabilities was equal to the fair value except for equipment that was undervalued $80,000 with a four-year remaining useful life and inventories that were undervalued $20,000 and sold in 2018. Panorama separate net income in 2018 and 2019 was $1,100,000 and $1,150,000, respectively. Scann separate net income in 2018 and 2019 was $300,000...
(1) On January 1, 2018, Panorama Company acquired 80% of Scann Corporation for $6,400,000. At the...
(1) On January 1, 2018, Panorama Company acquired 80% of Scann Corporation for $6,400,000. At the time of the acquisition, the book value of Scann's assets and liabilities was equal to the fair value except for equipment that was undervalued $80,000 with a four-year remaining useful life and inventories that were undervalued $20,000 and sold in 2018. Panorama separate net income in 2018 and 2019 was $1,100,000 and $1,150,000, respectively. Scann separate net income in 2018 and 2019 was $300,000...
On January 1, 2018, Panorama Company acquired 80% of Scann Corporation for $6,400,000.
On January 1, 2018, Panorama Company acquired 80% of Scann Corporation for $6,400,000. At the time of the acquisition, the book value of Scann's assets and liabilities was equal to the fair value except for equipment that was undervalued $80,000 with a four-year remaining useful life and inventories that were undervalued $20,000 and sold in 2018. Panorama separate net income in 2018 and 2019 was $1,100,000 and $1,150,000, respectively. Scann separate net income in 2018 and 2019 was $300,000 and...
Company A acquired 100% of Company B's voting stock on January 1, 2018 by issuing 10,000...
Company A acquired 100% of Company B's voting stock on January 1, 2018 by issuing 10,000 shares of its $10 par value common stock. Company A's common stock had a fair value of $14 per share at that time. Company B's stockholder's equity was $105,000 at date of acquisition. The trademark was undervalued by $10,000. It has an indefinite life. Equipment (with a 5 year life) was undervalued by $5,000. A customer list that had been created internally had an...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT