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Chris M., M.S.W. Social Work
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For questions 1 to 3, use the following balance sheets for

Resolved Question:

HELLO, THIS ARE 7 QUESTIONS OF MULTIPLE CHOICE.....DO NOT NEED EXPLANATION ONLY THE ANSWER

For questions 3 to 5, use the following balance sheets for the Seattle Co. and the Washington Co. as of December 31, 19x1. During 19x1, the individual profit reported by the Seattle Co. was $150,000 and the Washington Co.’s individual profit was $80,000. The Seattle Co. acquired 90% of the Washington Co. stock on January 1, 19x0. Seattle Co. Assets: Other Current Assets: 375,000, Inventory: 225,000, Equipment: 3,000,000, Accumulated Depreciation-Equipment: (1,000,000), Buildings: 4,800,000, Accumulated Depreciation-Buildings: (3,200,000), Investment in Washington Co. Stock (90%): 1,500,000, Investment in Washington Co. Bonds (par value $1000): 515,000, Total: 6,215,000 Seattle Co. Equities: Current Liabilities: 180,000, Bonds Payable (par value $1000): 1,000,000, Premium on bonds: 100,000, Capital Stock-Seattle: 3,000,000, Retained Earnings-Seattle: 1,935,000, Total: 6,215,000 Washington Co. Assets: Other Current Assets: 150,000, Inventory: 200,000, Equipment: 1,250,000, Accumulated Depreciation-Equipment: (500,000), Buildings: 3,000,000, Accumulated Depreciation-Buildings: (1,400,000), Total: 2,700,000 Washington Co. Equities: Current Liabilities: 100,000, Bonds Payable (par value $1000): 1,400,000, Capital Stock-Washington: 900,000, Retained Earnings-Washington: 300,000, Total: 2,700,000 1.

3 Assume that the Washington Co. bonds bear interest at 6% payable annually on December 31; that the Seattle Co. acquired its share of the bonds, $500,000, on January 1, 19x1: that the fair market value of the bonds was exactly equal to their carrying value at the date the Seattle Co. acquired 90% of the Washington Co. stock. The bonds will mature on December 31, 19x3. Amortization of bond premium is based on the straight-line method. On the consolidated trial balance on December 31, 19x1, the correct eliminating entry for the intercompany bonds and intercompany interest is:
A. Debit: Loss on Bond Retirement for $10,000, Bonds Payable for $500,000, and Interest Income for $30,000. Credit: Investment in Washington Co. Bonds for $515,000, and Interest Expense for $25,000.
B. Debit: Loss on Bond Retirement for $15,000, Bonds Payable for $500,000, and Interest Income for $30,000. Credit: Investment in Washington Co. Bonds for $515,000, and Interest Expense for $30,000.
C. Debit: Retained Earnings for $15,000, Bonds Payable for $500,000, and Interest Income for $30,000. Credit: Investment in Washington Co. Bonds for $515,000, and Interest Expense for $30,000.
 D. Debit: Loss on Bond Retirement for $20,000, Bonds Payable for $500,000, and Interest Income for $25,000. Credit: Investment in Washington Co. Bonds for $515,000, and Interest Expense for $30,000.

4. Assume the same situation as in question 1 with respect to the bonds except that the consolidated balance sheet at the end of 19x2 is being prepared for the separate balance sheets. The correct eliminating entry would require a debit to Retained Earnings-Seattle for
A: 0,  B: 5,000, C::10,000, or   D:15,000

5. Assume that the Washington Co. assets and liabilities on January 1,19x0, had fair market values exactly equal to book values and that the Seattle Co. uses the cost method of accounting for its investment. The Washington Co. earned $20,000 during 19x0 and paid no dividends. If goodwill is being amortized over the maximum period, and if there were no other intercompany transactions, the correct amount of consolidated net income for 19x1 would be 209,250, 217,250, 222,000,or 230,000 Questions 4 through 8 are based on the following data: The following balance sheets are for the Denver Co. and the Colorado Co. as of January 1, 19x1. The statements are presented as they appeared immediately before the acquisition of Colorado Co. stock by the Denver Co. Denver Co. Assets: Other Current Assets: 2,000,000, Inventory: 250,000, Equipment: 4,000,000, Accumulated Depreciation-Equipment: (1,500,000), Buildings: 6,000,000, Accumulated Depreciation-Buildings: (3,000,000), Total: 7,750,000 Denver Co. Equities: Current Liabilities: 400,000, Bonds Payable: 3,000,000, Capital Stock-Denver ($10 par): 3,000,000, Retained Earnings-Denver: 1,350,000, Total: 7,750,000 Colorado Co. Assets: Other Current Assets: 100,000, Inventory: 130,000, Equipment: 2,400,000, Accumulated Depreciation-Equipment: (1,600,000), Buildings: 4,000,000, Accumulated Depreciation-Buildings: (2,500,000), Total: 2,530,000 Colorado Co. Equities: Current Liabilities: 75,000, Bonds Payable: 1,500,000, Premium on Bonds: 150,000, Capital Stock-Colorado ($25 par): 500,000, Premium on Stock-Colorado: 100,000, Retained Earnings-Colorado: 205,000, Total: 2,530,000

6. Assume that the Denver Co. is to acquire all of the Colorado Co. stock by issuing new shares of its own stock as consideration. Also assume that the market value of the Denver Co. stock at the time of the exchange is $30 per share and that the market value per share of the Colorado Co. stock is $50 per share. Let the market value of each stock at the date of acquisition be the sole determinant. What is the number of shares which the Denver Company must issue to the Colorado Company share holders?   A: 16,667,  B:20,000,  C:33,333   D:50.000

7.     Assume that the Denver Co. issues 55,000 shares in exchange for all of the Colorado Co. stock, and that there is no need to adjust the financial statements of either because of different accounting methods being employed. If all the requirements for using the pooling method are met, the amount of consolidated retained earnings on the consolidated balance sheet at date of acquisition would be
A:0,  B: 205,000,   C:1,350,000, or D:1,555,000

8.     Assume that the purchase method is used and that the Denver Co. debited its investment account for the fair market value of the stock given in exchange, and that the market value of the Colorado Co. ‘s equipment was $150,000, greater than the book value at date of acquisition. The amount of Excess of Acquisition Cost over Book Value of Acquired Subsidiary on the January 1,19x1, consolidated balance sheet would be
205,000; 195,000; 45,000; or 0

For questions 7 and 8 assume that the Denver Co. acquired on January 1, 19x1, 15,000 shares of Colorado Co. stock by paying $900,000 in cash plus broker’s fees of $25,000.

9.     Assuming that the legal method of valuing minority interest is used, the amount of Excess of Acquisition Cost Over Book Value of Acquired Subsidiary to be shown on the consolidated balance sheet on January 1,19x1, should be
321,250; 201,250; 120,00; or 95,000

10.     Assuming that the entity method of valuing minority interest is used, the amount to be shown for Minority Interest on the January 1, 19x1, consolidated balance sheet should be
121,250; 201,250; 300,000; or 308,33.

THANK YOU






Submitted: 2 years ago.
Category: Homework
Expert:  Chris M. replied 2 years ago.
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Chris M., M.S.W. Social Work
Category: Homework
Satisfied Customers: 2503
Experience: Master's Degree, strong math and writing skills, experience in one-on-one tutoring (college English)
Chris M. and 4 other Homework Specialists are ready to help you
Customer: replied 2 years ago.
PLEASE LET ME SUBMIT THIS TO THE SCHOOL FIRST. I WOULD HAVE A SEOND OPPORTUNITY DO YOU WOULD HAVE A SECOND OPPORTUNITY FOR CORRECTIONS. IT DOES NOT NEED TO BE PERFECT, ONLY NEED TO PASS
THANK YOU
Expert:  Chris M. replied 2 years ago.
Okay, thanks for the reply. Good luck with the assignment!
Customer: replied 2 years ago.
Hello: I made the question on Friday afternoon so that the exam is still in my hands to be mail tomorrow Monday. As that will take a little while to arrive there and then be acepted, I am going to accept your answer and cross my fingers that I am passing the exam. How ever, PLEASE help me with one last question/answer which is part of the exam and represent 70% of the score points. I found on internet this answer but I am not sure if it is complete, ..... the question starts like..... "Jones Company acquired an 80% interest in Smit Company at the begining of year 1 for $ 161,000. The book value of the stock purchased was $ 140,000. In negotiating the purchase price, it was agreed that the market value was justified in exceeding the book value......" Please find it in internet, you will see the complete question and the answer online which is on Excel and I have not way to copy it and send it to you. They required to complete the accompanying worksheet with the explaining notes that you can find online but they also requered to prepare a statement of consolidated net income showing minority interest. CAN YOU PLEASE HELP ME WITH THE CONSOLIDATED NET INCOME? Here is the link where you can see the complete question........ http://www.justanswer.com/homework/1xvyf-amol-jones-co-acquired-80-interest-smith-co.html. thank you
Expert:  Chris M. replied 2 years ago.

Hi there,

 

At the very end of the thread you referred to, there is an answer link that includes the part about "consolidated net income showing minority interest."

Customer: replied 2 years ago.
Do you mean that the answer is complete?
Expert:  Chris M. replied 2 years ago.
It appears that the part you are referring to is answered there. However, if this one problem represents 70% of an exam grade, you may want to post it as a new separate question.
Customer: replied 2 years ago.
That is the 70% and the ones you answered are the 30 %
But I just can't tell if the Statement of consolidated net income showing minority interest is included there ;(
Expert:  Chris M. replied 2 years ago.
There is an answer to the "Statement of consolidated net income showing minority interest" included there.
Customer: replied 2 years ago.
Thank you very much for waiting, I apologized about that. I asked you a question on Friday afternoon a week ago and wasn't ready to mail it until Monday afternoon. I am very sure they will receive that examination early next week. most of the examinations were online (which I can get instant results) but the one you answered was the one of the few that had to be mailed. we will be in touch this week for sure. and again, I am sorry, I just want to make sure I can get hold of you if The examination results aren't good enough for them.
thank you
Expert:  Chris M. replied 2 years ago.

Okay, I understand. Thanks for the update.

 

-Chris M.

Customer: replied 2 years ago.
I have to tell you, I just checked online my score on the last examination and unfortunately isn't a passing score, my resulst must be already mailed to me for revew. I decided to retake the examination online wich I would have the score right away, Would you like to try the new questions? THey are 11 questions and I need to answer at least 7 correctly. Do you want to look at them? If you want to try them...I want to know how to add $20 to your account
Expert:  Chris M. replied 2 years ago.

Hello, and thanks for the question.

 

First, I only answered the multiple choices question, which you said accounted for 30% of the grade. How did you do on the those questions? If those answers were helpful, please click "accept," so that I am compensated for my efforts. As for another test, please make a new post of those questions.

 

Thanks

Customer: replied 2 years ago.
They already sent me the examination back but that will take another 5 working days to revew where was the problem. Only thing I can see online is that they received and already scored a 6.5, and I need a 7.0 to pass.
I will accept your answers as soon as I make sure that your answers were correct. THis is a very unconfprtable situation since I made that test by mail. The next one I will make it online and the results will be automaticly.
Expert:  Chris M. replied 2 years ago.
Okay, thanks for the update.
Customer: replied 2 years ago.
Just to let you know, I have the complete accounting program examinations corrected answers. I only need to repeat the lastone. from ICS. maybe you interested. Dont you get some times asked the same questions?
Customer: replied 2 years ago.
Oh and thank you very much for your patient.
Expert:  Chris M. replied 2 years ago.

You're welcome. No need to reply. Each of your responses requires a reply from me.

Customer: replied 2 years ago.
Thanks again for the patien, I am sure I will get my examination this week cming and as soon as I see you got the answers right, or most of it I will accept your answer.
Please tell me, more about that memebership, I dont understand how it can be cheaper than a private answer like I just got from you with my examination.
I am interested because I need help with my accounting course, but do you mean that I make the same time of questions after I get a membership? I mean the same type of questions I did to you? thanks for the answer. Is there a minimun time to be member?
Expert:  Chris M. replied 2 years ago.

You can read about the subscription plan by clicking here. In general, please direct any questions about your account status, billing, etc.to customer services.

 

Thanks

Customer: replied 2 years ago.
I got the test back today,.....5 of the multiple choices questions were good, 3 were wrong. The 70% question were 50% good, it marked a score of 6.9 which is not a passing score. I am repeating the test, this time will be scored automaticly online.

What do you think? :(
Expert:  Chris M. replied 2 years ago.

Hello, and thanks for the feedback.

 

Very sorry that all the MC questions were not correct. When posting questions for assistance with a retest, you might consider using the Business/Finance Homework category.

Customer: replied 2 years ago.
I think that you deserve to be compensated for your good answers and because of the pfact that there were 3 wrong ones that could have changed the score to a "passing" maybe you could look at sme questions and pick only 3 questions that you know for sure?
I still going to accept the answer, you were good for more of them, but I still need re do the test. Do you want to look at my new test? please dont feel upset.
Expert:  Chris M. replied 2 years ago.

Thanks for the offer, but I believe it would be in your best interest to begin a new post(s) in the category I suggested.

Customer: replied 2 years ago.
Sorry, I complete forgat about this. I am accepting your answer today, not before you get this message, as I want to tell you, I recognize your effort..you got 4 of the questions correctly answered and 3 of them failed. I dont know if you want to see the mistakes but here they are your answers......

3. A: Debit: Loss on Bond Retirement for $10,000, Bonds Payable for $500,000, and Interest Income for $30,000. Credit: Investment in Washington Co. Bonds for $515,000, and Interest Expense for $25,000.

4. B: 5,000

5. A: 209,250

6. C: 33,333

7. D: 1,555,000

8. C: 45,000

9. A: 321,250

10. B: 201,250

 

3.The correct answer number 3 was D (you chosed A)

9. the corrrect answer was B (you chosed A)

10. The correct answer was D (you chosed B)

 

my score was not bad, but it was not a passing score either :(

I am telling you I am accepting your answers today anyway but I have to retake the exam online (which would be automatic score) and I though that would be fair if I could add 25 dollars more to you and you are the one who try to answer the exam. That way, I would not have to pay 53 more dollars which would the the cost with a new expert. What do you think?

Expert:  Chris M. replied 2 years ago.

Hello,

 

Since you haven't made an "accept" yet, the $25 deposit for this question remains in your account. So, it won't cost you more to make a new post of your questions. I think that would be your best option. You can post the questions in "Homework" or "Business/Finance Homework." Good luck on your exam!

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