Metlock Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $1,310,000 for 52,400 shares. Kulikowski Inc. declared and paid an $0.75 per share cash dividend on June 30 and on December 31, 2021. Kulikowski reported net income of $667,000 for 2021. The fair value of Kulikowski’s stock was $28 per share at December 31, 2021. Assume that the security is a trading security.
Prepare the journal entries for Metlock Inc. for 2020 and 2021, assuming that Metlock cannot exercise significant influence over Kulikowski.
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|
Dec. 31, 2020June 30, 2021Dec. 31, 2021 |
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|
Dec. 31, 2020June 30, 2021Dec. 31, 2021 |
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|
Dec. 31, 2020June 30, 2021Dec. 31, 2021 |
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|
(To record dividend.) |
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|
(To record fair value.) |
eTextbook and Media
List of Accounts
Prepare the journal entries for Metlock Inc. for 2020 and 2021, assuming that Metlock can exercise significant influence over Kulikowski.
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|
Dec. 31, 2020June 30, 2021Dec. 31, 2021 |
|||
|
Dec. 31, 2020June 30, 2021Dec. 31, 2021 |
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|
Dec. 31, 2020June 30, 2021Dec. 31, 2021 |
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|
(To record dividend.) |
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|
(To record revenue.) |
At what amount is the investment in securities reported on the balance sheet under each of these methods at December 31, 2021? What is the total net income reported in 2021 under each of these methods?
|
Fair Value Method |
Equity Method |
|||
| Investment amount (balance sheet) |
$ |
$ |
||
| Dividend revenue (income statement) | ||||
| Unrealized holding gain (income statement) | ||||
| Investment income (income statement) |
In: Accounting
The comparative
balance sheets for 2021 and 2020 are given below for Surmise
Company. Net income for 2021 was $90 million.
|
SURMISE COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) |
||||||||
| 2021 | 2020 | |||||||
| Assets | ||||||||
| Cash | $ | 23 | $ | 31 | ||||
| Accounts receivable | 95 | 117 | ||||||
| Less: Allowance for uncollectible accounts | (29 | ) | (4 | ) | ||||
| Prepaid expenses | 24 | 21 | ||||||
| Inventory | 128 | 110 | ||||||
| Long-term investment | 95 | 50 | ||||||
| Land | 110 | 110 | ||||||
| Buildings and equipment | 441 | 295 | ||||||
| Less: Accumulated depreciation | (152 | ) | (118 | ) | ||||
| Patent | 30 | 33 | ||||||
| $ | 765 | $ | 645 | |||||
| Liabilities | ||||||||
| Accounts payable | $ | 24 | $ | 52 | ||||
| Accrued liabilities | 2 | 25 | ||||||
| Notes payable | 54 | 0 | ||||||
| Lease liability | 137 | 0 | ||||||
| Bonds payable | 70 | 148 | ||||||
| Shareholders’ Equity | ||||||||
| Common stock | 74 | 50 | ||||||
| Paid-in capital—excess of par | 271 | 205 | ||||||
| Retained earnings | 133 | 165 | ||||||
| $ | 765 | $ | 645 | |||||
Required:
Prepare the statement of cash flows of Surmise Company for the year
ended December 31, 2021. Use the indirect method to present cash
flows from operating activities because you do not have sufficient
information to use the direct method. You will need to make
reasonable assumptions concerning the reasons for changes in some
account balances. A spreadsheet or T-account analysis will be
helpful. (Hint: The right to use a building was acquired
with a seven-year lease agreement. Annual lease payments of $9
million are paid at January 1 of each year starting in 2021.)
(Enter your answers in millions (i.e., 10,000,000 should be
entered as 10). Amounts to be deducted should be indicated with a
minus sign.)
In: Accounting
The comparative balance sheets for 2021 and 2020 are given below
for Surmise Company. Net income for 2021 was $86 million.
| SURMISE COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) |
||||||||
| 2021 | 2020 | |||||||
| Assets | ||||||||
| Cash | $ | 43 | $ | 49 | ||||
| Accounts receivable | 93 | 113 | ||||||
| Less: Allowance for uncollectible accounts | (28 | ) | (5 | ) | ||||
| Prepaid expenses | 23 | 19 | ||||||
| Inventory | 141 | 125 | ||||||
| Long-term investment | 73 | 30 | ||||||
| Land | 106 | 106 | ||||||
| Buildings and equipment | 423 | 285 | ||||||
| Less: Accumulated depreciation | (146 | ) | (114 | ) | ||||
| Patent | 28 | 29 | ||||||
| $ | 756 | $ | 637 | |||||
| Liabilities | ||||||||
| Accounts payable | $ | 22 | $ | 48 | ||||
| Accrued liabilities | 3 | 23 | ||||||
| Notes payable | 50 | 0 | ||||||
| Lease liability | 131 | 0 | ||||||
| Bonds payable | 68 | 142 | ||||||
| Shareholders’ Equity | ||||||||
| Common stock | 72 | 50 | ||||||
| Paid-in capital—excess of par | 267 | 205 | ||||||
| Retained earnings | 143 | 169 | ||||||
| $ | 756 | $ | 637 | |||||
Required:
Prepare the statement of cash flows of Surmise Company for the year
ended December 31, 2021. Use the indirect method to present cash
flows from operating activities because you do not have sufficient
information to use the direct method. You will need to make
reasonable assumptions concerning the reasons for changes in some
account balances. A spreadsheet or T-account analysis will be
helpful. (Hint:The right to use a building was acquired
with a seven-year lease agreement. Annual lease payments of $7
million are paid at January 1 of each year starting in
2021.)(Enter your answers in millions (i.e., 10,000,000
should be entered as 10). Amounts to be deducted should be
indicated with a minus sign.)
In: Accounting
The comparative balance sheets for 2021 and 2020 are given below
for Surmise Company. Net income for 2021 was $80 million.
| SURMISE COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) |
||||||||
| 2021 | 2020 | |||||||
| Assets | ||||||||
| Cash | $ | 55 | $ | 58 | ||||
| Accounts receivable | 89 | 106 | ||||||
| Less: Allowance for uncollectible accounts | (24 | ) | (4 | ) | ||||
| Prepaid expenses | 19 | 16 | ||||||
| Inventory | 132 | 110 | ||||||
| Long-term investment | 89 | 50 | ||||||
| Land | 98 | 98 | ||||||
| Buildings and equipment | 400 | 270 | ||||||
| Less: Accumulated depreciation | (137 | ) | (108 | ) | ||||
| Patent | 25 | 26 | ||||||
| $ | 746 | $ | 622 | |||||
| Liabilities | ||||||||
| Accounts payable | $ | 19 | $ | 42 | ||||
| Accrued liabilities | 4 | 20 | ||||||
| Notes payable | 48 | 0 | ||||||
| Lease liability | 122 | 0 | ||||||
| Bonds payable | 64 | 132 | ||||||
| Shareholders’ Equity | ||||||||
| Common stock | 69 | 50 | ||||||
| Paid-in capital—excess of par | 261 | 205 | ||||||
| Retained earnings | 159 | 173 | ||||||
| $ | 746 | $ | 622 | |||||
Required:
Prepare the statement of cash flows of Surmise Company for the year
ended December 31, 2021. Use the indirect method to present cash
flows from operating activities because you do not have sufficient
information to use the direct method. You will need to make
reasonable assumptions concerning the reasons for changes in some
account balances. A spreadsheet or T-account analysis will be
helpful. (Hint: The right to use a building was acquired
with a seven-year lease agreement. Annual lease payments of $8
million are paid at January 1 of each year starting in 2021.)
(Enter your answers in millions (i.e., 10,000,000 should be
entered as 10). Amounts to be deducted should be indicated with a
minus sign.)
In: Accounting
There are new kinds of summer campus sprouting up for kids, with names like Camp Millionaire, MoolahU, and WhizBizKids. Rather than teaching basketball or camping skills, the camps appeal to parents who want to teach their children the basics of money management, or support budding Warren Buffetts and Steve Jobses who show an interest in business. The programs teach everything from basic financial concepts to how to launch a startup. The general idea for these campus is to teach kids early about money, investing and entrepreneurship. At MoolahU, a startup camp that launched in Austin, Texas in 2005, young business minds ages 7 to 17 collaborate for a week to develop a business idea and prototype product, and get a loan from a "barracuda tank" of local business experts-who include established businesspeople and entrepreneurs. From there, they sell their product, repay their borrowed money with interest and take turns occupying different leadership roles in their business. MoolahU's 3,000 alums can stay engaged beyond summer through a school-year apprentice program. At Camp Millionaire, youngsters learn that money can be earned through a salaried job or "made" by creating a business or income stream that delivers returns or passive income (rent, licensing fees, royalties, etc).
|
To what degree do you think you would have enjoyed and benefited from attending MoolahU when you were younger? |
In: Finance
| Case 2: Evaluate a project with a $25,000 startup cost and annual ongoing costs of $2,500. Cash flows in the first year are estimated to be $1,500 in the first year, $5,500 in the second year, $6,700 in the third year, $9,300 in the fourth year, and $11,500 in the fifth and final year. There is also equipment that is estimated to have a $20,000 salvage value. Assume that the final cash flows and the equipment salvage happen in the same period. |
| 1. Use the NPV function to help calculate the Net Present Value of the project in Case 2 (NPV plus the startup cost[a negative number]) Use 12% as your required return/cost of capital for Case 2 |
| 2. Calculate the present value of each cash flow and add the values together. Did the answer match your answer in Q6? |
| 3. Use the XIRR function to calculate the Internal Rate of Return for the project in Case 2. Use today's date as the start date T0, and the same date a year later for T1 and so on. |
| 4. What required rate/cost of capital would make you indifferent to the project in Case 1 and Case 2? (What rate makes the Net Present Value equal? |
| 5. What is the Discounted Payback Period for Case 2? |
| 6: Using the base required return/cost of capital for cases 1 and 2, which project do you prefer and why? |
In: Finance
Training and Development assignment.
Describe the usage of Computer Based Training (CBT) in McDonald's Company training programs.
Format
A i. McDonald's Company Background (Founder, date of establishment and number of franchisers)
ii. Discuss on the blending of Computer Based Training (CBT) with other training methods
iii. Explain the types of Computer Based Training (CBT) such as Program Instruction, Intelligent Tutoring Systems, Interactive Multimedia and Virtual Reality and give some examples.
In: Operations Management
The comparative balance sheets for 2021 and 2020 are given below
for Surmise Company. Net income for 2021 was $80 million.
| SURMISE COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) |
||||||||
| 2021 | 2020 | |||||||
| Assets | ||||||||
| Cash | $ | 55 | $ | 58 | ||||
| Accounts receivable | 89 | 106 | ||||||
| Less: Allowance for uncollectible accounts | (24 | ) | (4 | ) | ||||
| Prepaid expenses | 19 | 16 | ||||||
| Inventory | 132 | 110 | ||||||
| Long-term investment | 89 | 50 | ||||||
| Land | 98 | 98 | ||||||
| Buildings and equipment | 400 | 270 | ||||||
| Less: Accumulated depreciation | (137 | ) | (108 | ) | ||||
| Patent | 25 | 26 | ||||||
| $ | 746 | $ | 622 | |||||
| Liabilities | ||||||||
| Accounts payable | $ | 19 | $ | 42 | ||||
| Accrued liabilities | 4 | 20 | ||||||
| Notes payable | 48 | 0 | ||||||
| Lease liability | 122 | 0 | ||||||
| Bonds payable | 64 | 132 | ||||||
| Shareholders’ Equity | ||||||||
| Common stock | 69 | 50 | ||||||
| Paid-in capital—excess of par | 261 | 205 | ||||||
| Retained earnings | 159 | 173 | ||||||
| $ | 746 | $ | 622 | |||||
Required:
Prepare the statement of cash flows of Surmise Company for the year
ended December 31, 2021. Use the indirect method to present cash
flows from operating activities because you do not have sufficient
information to use the direct method. You will need to make
reasonable assumptions concerning the reasons for changes in some
account balances. A spreadsheet or T-account analysis will be
helpful. (Hint: The right to use a building was acquired
with a seven-year lease agreement. Annual lease payments of $8
million are paid at January 1 of each year starting in 2021.)
(Enter your answers in millions (i.e., 10,000,000 should be
entered as 10). Amounts to be deducted should be indicated with a
minus sign.)
|
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In: Accounting
Pitino acquired 80 percent of Brey's outstanding shares on January 1, 2019, in exchange for $369,000 in cash. The subsidiary's stockholders' equity accounts totaled $353,000, and the noncontrolling interest had a fair value of $92,250 on that day. However, a building (with a ten-year remaining life) in Brey's accounting records was undervalued by $19,000. Pitino assigned the rest of the excess fair value over book value to Brey's patented technology (five-year remaining life).
Brey reported net income from its own operations of $67,000 in 2019 and $83,000 in 2020. Brey declared dividends of $18,000 in 2019 and $22,000 in 2020.
Brey sells inventory to Pitino as follows:
| Year | Cost to Brey | Transfer Price to Pitino | Inventory Remaining at Year-End (at transfer price) | ||||||
| 2019 | $ | 72,000 | $ | 130,000 | $ | 28,000 | |||
| 2020 | 97,500 | 150,000 | 40,500 | ||||||
| 2021 | 87,500 | 175,000 | 50,000 | ||||||
At December 31, 2021, Pitino owes Brey $19,000 for inventory acquired during the period.
The following separate account balances are for these two companies for December 31, 2021, and the year then ended.
Note: Parentheses indicate a credit balance.
| Pitino | Brey | ||||||
| Sales revenues | $ | (868,000 | ) | $ | (381,000 | ) | |
| Cost of goods sold | 518,000 | 212,000 | |||||
| Expenses | 185,700 | 64,000 | |||||
| Equity in earnings of Brey | (59,540 | ) | 0 | ||||
| Net income | $ | (223,840 | ) | $ | (105,000 | ) | |
| Retained earnings, 1/1/21 | $ | (494,000 | ) | $ | (284,000 | ) | |
| Net income (above) | (223,840 | ) | (105,000 | ) | |||
| Dividends declared | 132,000 | 22,000 | |||||
| Retained earnings, 12/31/21 | $ | (585,840 | ) | $ | (367,000 | ) | |
| Cash and receivables | $ | 149,000 | $ | 101,000 | |||
| Inventory | 270,000 | 151,000 | |||||
| Investment in Brey | 456,000 | 0 | |||||
| Land, buildings, and equipment (net) | 967,000 | 331,000 | |||||
| Total assets | $ | 1,842,000 | $ | 583,000 | |||
| Liabilities | $ | (726,160 | ) | $ | (37,000 | ) | |
| Common stock | (530,000 | ) | (179,000 | ) | |||
| Retained earnings, 12/31/21 | (585,840 | ) | (367,000 | ) | |||
| Total liabilities and equity | $ | (1,842,000 | ) | $ | (583,000 | ) | |
What was the annual amortization resulting from the acquisition-date fair-value allocations?
Were the intra-entity transfers upstream or downstream?
What intra-entity gross profit in inventory existed as of January 1, 2021?
What intra-entity gross profit in inventory existed as of December 31, 2021?
What amounts make up the $59,540 Equity Earnings of Brey account balance for 2021?
What is the net income attributable to the noncontrolling interest for 2021?
What amounts make up the $456,000 Investment in Brey account balance as of December 31, 2021?
Prepare the 2021 worksheet entry to eliminate the subsidiary’s beginning owners’ equity balances.
Without preparing a worksheet or consolidation entries, determine the consolidation balances for these two companies.
I ONLY NEED QUESTIONS 7,8, AND 9
In: Accounting
| 18517 | 150576 | 5637 |
| 3315 | 33798 | 2243 |
| 2826 | 31921 | 1212 |
| 2018 | 27231 | 923 |
| 1845 | 11091 | 383 |
| 1666 | 7973 | 330 |
| 1401 | 2773 | 293 |
| 1340 | 2660 | 283 |
| 1019 | 1285 | 282 |
Row 1: confirmed cases CA row 2: confirmed cases Row 3: confirmed cases WA
Your assignment is to analyze the relationship between two sets of scores using the inferential statistical procedure of an independent two sample t-hypothesis test. Using StatCrunch SPSS, you must calculate and analyze both descriptive and inferential statistics data. The data collection in analysis for this final project is aligned with concepts learned during several weeks of this course.
The data you are being provided with relates to information collected pertaining to the current COVID-19 pandemic. You are being asked to analyze this “case” data derived from 3 states California, New York, and Washington state, each row within the states represent confirmed cases by 9 (n=9) counties. The data from each state identifies the actual number of confirmed COVID-19 cases as of late April 2020, your role as a behavioral research assistant is to analyze the data from your choice of only two of these states (choose and compare CA: to either NY or WA state) and demonstrate whether or not there is a statistical difference in the number of identified cases between your choice of two states. Critical elements or parts of this final project include knowledge of; descriptive statistics, the statistical cycle of inquiry (inferential set up), and inferential statistics.
In: Statistics and Probability