{"id":179216,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/advanced-financial-reporting-final-exam-2"},"modified":"2018-10-24T09:23:29","modified_gmt":"2018-10-24T09:23:29","slug":"advanced-financial-reporting-final-exam-2","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/advanced-financial-reporting-final-exam-2\/","title":{"rendered":"Advanced Financial Reporting Final Exam"},"content":{"rendered":"

<\/a> <\/p>\n

Problem A
1)<\/p>\n

The ABC Partnership has 3 equal partners with the following capital accounts:
a. Partner A capital account $100,000
b. Partner B capital account $100,000
c. Partner C capital account $100,000
They are allowing Partner D to become an equal (1\/4)
partner for a contribution of $300,000
a)
b)<\/p>\n

2)<\/p>\n

Prepare the journal entry if the partnership uses the bonus method
Prepare the journal entry if the partnership uses the goodwill method<\/p>\n

Alpha and Beta are equal partners. At the beginning of the year Alpha has $600,000 in his capital account while Beta has $900,000 in her partnership account. The partnership agreement states that partners get 10% interest on their capital accounts and that Alpha gets a $40,000 salary for work done for the partnership. Any remaining profits or losses are equally divided between the partners. Income before interest and Alphas salary was $375,000. Determine the ending capital balance for Alpha and Beta.<\/p>\n

Problem B
1)  On January 1, 2011 The ACME Company made two investments:<\/p>\n

Purchased 2000 of the 2,000,000 shares of HAL for $200,000.
b. Purchased 400 of the 1000 shares of GZK for $40,000 at this time the book value of GZK was $100,000.
In 2011 HAL paid dividends of $4,000,000, reported income of $12,000,000. On December 31, HAL stock
was selling for $104 per share.
In 2011 GZK paid dividends of $8000, reported income of $2800. On December 31, GZK stock was selling for $98 per share.
On 3\/1\/12 ACME sold its investment in HAL at $102 per share
On 3\/14\/12 ACME sold its investment in GZK at $101 per share
REQUIRED:
Prepare the journal entries needed by ACME in 2011 and 2012 if. They have no influence over HAL and they have significant influence of GZK Note: ACME is a manufacturer so they would use
available for sale rather than trading securities.
a.<\/p>\n

2)<\/p>\n

On January 1, 2011 Big Company purchased 80% of Small company for $3,000,000. On January 1, Small
had the following balance sheet Assets
Cash
500,000
Inventory 500,000
Equipment 2,000,000
a\/d equipment 1,000,000<\/p>\n

liabilities
accounts payable 200,000
equity
common stock 1,000,000
retained earnings 800,000
The equipment with a 10 year life (no salvage) has a fair market value of $1,600,000 On January 1, 2011 (just before the purchase) Big had the following balance sheet:
Cash
$4,000,000
Equipment $5,000,000
a\/d equipment $3,000,000
land $3,000,000
a\/p 1,000,000
common stock 1,000,000
r\/e 7,000,000
REQUIRED: PREPARE THE CONSOLIDATED
BALANCE SHEET ON JANUARY 2, 2011<\/p>\n

Problem C
1) On January 1, 2005 Able Company purchased all of the stock of Baker Company. On January 1, 2010,
Able purchased a piece of equipment for $100,000. This equipment is expected to last 8 years with $4000
salvage. On January 1, 2011 Able sold the equipment to Baker for $80,000. Baker believes the equipment
has 7 remaining years and a 3000 salvage. On January 1, 2013 Baker sold the equipment to Cat company for $45,000.
REQUIRED: PREPARE THE JOURNAL ENTRIES FOR ABLE, BAKER AND CONSOLIDATED FOR 2011, 2012, AND 2013LABEL WHOSE BOOKS THE ENTRIES ARE BEING MADE ON<\/p>\n

3) On 1\/1\/2000 Crazy Company purchased all the outstanding stock of Normal Company. On 10\/1\/2011
Crazy sold inventory to Normal for $60,000. This merchandise had cost Crazy $20,000 to produce. At the
end of 2011 Normal had sold of the merchandise from Crazy for $42,000. In 2012 Normal sold the rest of the merchandise from Crazy for $43,000.<\/p>\n

REQUIRED: PREPARE THE JOURNAL ENTRIES FOR CRAZY, NORMAL AND WORKSHEET FOR 2011, 2012BOTH CRAZY AND NORMAL USE PERPETUAL INVENTORY.
\n <\/i><\/p>\n","protected":false},"excerpt":{"rendered":"

Problem A 1) The ABC Partnership has 3 equal partners with the following capital accounts: a. Partner A capital account $100,000 b. Partner B capital account $100,000 c. Partner C capital account $100,000 They are allowing Partner D to become Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-179216","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/179216","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=179216"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/179216\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=179216"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=179216"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=179216"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}