Business
North Star prepared the following unadjusted trial balance at the end of its second year of operations ending December 31. Account Titles Debit Credit Cash $ 11,200 Accounts Receivable 5,200 Prepaid Rent 2,240 Equipment 20,200 Accumulated Depreciation $ 1,180 Accounts Payable 1,180 Income Tax Payable 0 Common Stock 24,000 Retained Earnings 1,300 Sales Revenue 47,080 Salaries and Wages Expense 24,200 Utilities Expense 11,700 Rent Expense 0 Depreciation Expense 0 Income Tax Expense 0 Totals $ 74,740 $ 74,740 Other data not yet recorded at December 31: 1. Rent expired during the year, $1,120. 2. Depreciation expense for the year, $1,180. 3. Utilities used and unpaid, $8,200. 4. Income tax expense, $310.Required:Indicate the accounting equation effects of each required adjustment. (Enter all amounts as positive values.)
The operations of Winston Corporation are divided into the Blink Division and the Blur Division. Projections for the next year are as follows: Blink Division Blur Division Total Sales $280,000 $168,000 $448,000 Variable costs 98,000 77,000 175,000 Contribution margin $182,000 $91,000 $273,000 Direct fixed costs 84,000 70,000 154,000 Segment margin $98,000 $21,000 $119,000 Allocated common costs 42,000 31,500 73,500 Operating income (loss) $56,000 ($10,500) $45,500 Operating income for Winston Corporation as a whole if the Blur Division were dropped would be: a. $66,500. b. $56,000. c. $45,500. d, $24,500.
Fortuna Company issued 70,000 shares of $1 par stock, with a fair value of $5 per share, for 80% of the outstanding shares of Acappella Company. The firms had the following separate balance sheets prior to the acquisition: Assets Fortuna Acappella Current assets $2,100,000 $ 960,000 Property, plant, and equipment (net) 4,600,000 1,300,000 Goodwill -- 240,000 Total assets $6,700,000 $2,500,000 Liabilities and Stockholders' Equity Liabilities $3,000,000 $ 800,000 Common stock ($1 par) 800,000 Common stock ($5 par) 200,000 Paid-in capital in excess of par 2,200,000 300,000 Retained earnings 700,000 1,200,000 Total liabilities and equity $6,700,000 $2,500,000 Book values equal fair values for the assets and liabilities of Acappella Company, except for the property, plant, and equipment, which has a fair value of $1,400,000. Compute goodwill or gain recognized in the consolidated statements .Book values equal fair values for the assets and liabilities of Acappella Company, except for the property, plant, and equipment, which have a fair value of $1,600,000.Required: a. What is the Goodwill/Gain associated with the acquisition:b. What is the Non-Controlling Interest recorded in the consolidated balance sheetc. What is the balance of the assets and liabilities side of the consolidated balance sheet after the acquisition:d.Record the two elimination entries associated with the acquisition of the company
The following trial balance of Crane Co. does not balance.CRANE CO.TRIAL BALANCEJUNE 30, 2017Debit CreditCash $3,099 Accounts Receivable $3,460 Supplies 1,029 Equipment 4,029 Accounts Payable 2,895 Unearned Service Revenue 1,429 Common Stock 6,229 Retained Earnings 3,229 Service Revenue 2,609 Salaries and Wages Expense 3,629 Office Expense 1,169 Totals $14,745 $18,061Each of the listed accounts should have a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors.1. Cash received from a customer on account was debited for $570, and Accounts Receivable was credited for the same amount. The actual collection was for $750.2. The purchase of a computer printer on account for $729 was recorded as a debit to Supplies for $729 and a credit to Accounts Payable for $729.3. Services were performed on account for a client for $890. Accounts Receivable was debited for $890 and Service Revenue was credited for $89.4. A payment of $294 for telephone charges was recorded as a debit to Office Expense for $294 and a debit to Cash for $294.5. When the Unearned Service Revenue account was reviewed, it was found that service revenue amounting to $554 was performed prior to June 30 (related to Unearned Service Revenue).6. A debit posting to Salaries and Wages Expense of $899 was omitted.7. A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $260.8. A dividend of $804 was debited to Salaries and Wages Expense for $804 and credited to Cash for $804.Prepare a correct trial balance.CRANE CO.TRIAL BALANCEJUNE 30, 2017DebitCredit $ $Totals $ $