ACC 401 MODULE 2 EXAM 1 LATEST

1. ACC 401 MODULE 2 EXAM 1 LATEST Visit Below Link, To Download This Course: https://www.tutorialsservice.net/product/acc-401-module-2-exam-1-latest/ Or Email us on SUPPORT@TUTORIALSSERVICE.NET ACC 401 Module 2 Exam 1 Latest ACC401 ACC 401 Module 2 Exam 1 Latest Question 1 (20 points) On January 2, 2013 Piron Corporation issued 100,000 new shares of its $5 par value common stock valued at $19 a share for all of Seana Corporation’s outstanding common shares. Piron paid $15,000 to register and issue shares. Piron also paid $20,000 for the direct combination costs of the accountants. The fair value and book value of Seana’s identifiable assets and liabilities were the same. Summarized balance sheet information for both companies just before the acquisition on January 2, 2013 is as follows: Piron Seana Cash $150,000 $120,000 Inventories 320,000 400,000 Other current assets 500,000 500,000 Land 350,000 250,000 Plant assets-net 4,000,000 1,500,000 Total assets $5,320,000 $2,770,000 Accounts payable $1,000,000 $300,000 Notes payable 1,300,000 660,000

2. Capital stock, $5 par 2,000,000 500,000 Additional paid-in capital 1,000,000 100,000 Retained earnings 20,000 1,210,000 Total liabilities & equities $5,320,000 $2,770,000 Part 1: Prepare Piron’s general journal entry for the acquisition of Seana, assuming that Seana survives as a separate legal entity. Part 2: Prepare Piron’s general journal entry for the acquisition of Seana, assuming that Seana will dissolve as a separate legal entity. Question 1 options: Question 2 (20 points) Question 2 Und Pancake Corporation saw the potential for vertical integration and purchased a 15% interest in Syrup Corp. on January 1, 2013, for $150,000. At that date, Syrup’s stockholders’ equity included $200,000 of $10 par value common stock, $300,000 of additional paid in capital, and $500,000 retained earnings. The companies began to work together and realized improved sales by both parties. On December 31, 2014, Pancake paid $250,000 for an additional 20% interest in Syrup Corp. Both of Pancake’s investments were made when Syrup’s book values equaled their fair values. Syrup’s net income and dividends for 2013 and 2014 were as follows: 2013 2014 Net income $220,000 $330,000 Dividends $20,000 $30,000 Part 1: Prepare journal entries for Pancake Corporation to account for its investment in Syrup Corporation for 2013 and 2014. Part 2: Calculate the balance of Pancake’s investment in Syrup at December 31, 2014. Question 2 options: Question 3 (20 points) Question 3 Und

3. On January 1, 2013, Pailor Inc. purchased 40% of the outstanding stock of Saska Company for $300,000. At that time, Saska’s stockholders’ equity consisted of $270,000 common stock and $330,000 of retained earnings. Saska Corporation reported net income of $360,000 for 2013. The allocation of the $60,000 excess of cost over book value acquired is shown below, along with information relating to the useful lives of the items: Overvalued receivables (collected in 2013) $(5,000) Undervalued inventories (sold in 2013) 16,000 Undervalued building (4 years’ useful life remaining at January 1, 2013) 24,000 Undervalued land 8,000 Unrecorded patent (6 years’ economic life remaining at January 1, 2013) 18,000 Undervalued accounts payable (paid in 2013) (4,000) Total of excess allocated to identifiable assets and liabilities 57,000 Goodwill 3,000 Excess cost over book value acquired $60,000 Determine Pailor’s investment income from Saska for 2013. Question 3 options: Question 4 (20 points) Question 4 Und On July 1, 2014, Polliwog Incorporated paid cash for 21,000 shares of Salamander Company’s $10 par value stock when it was trading at $22 per share. At that time, Salamander’s total stockholders’ equity was $597,000, and they had 30,000 shares of stock outstanding, both before and after the purchase. The book value of Salamander’s net assets is believed to approximate the fair values. Part 1: Prepare the journal entry that Polliwog would record at the date of acquisition on their general ledger. Part 2: Calculate the balance of the goodwill that would be recorded on Polliwog’s general ledger, on Salamander’s general ledger, and in the consolidated financial statements. Question 4 options:

4. Question 5 (20 points) Question 5 Und On January 1, 2014, Pinnead Incorporated paid $300,000 for an 80% interest in Shalle Company. At that time, Shalle’s total book value was $300,000. Patents were undervalued in the amount of $10,000. Patents had a 5 year remaining useful life, and any remaining excess value was attributed to goodwill. The income statements for the year ended December 31, 2014 of Pinnead and Shalle are summarized below: Pinnead Shalle Sales $800,000 $300,000 Income from Shalle 78,400 Cost of sales (100,000) (100,000) Depreciation (70,000) (30,000) Other expenses (130,000) (70,000) Net income $578,400 $100,000 Part 1: Calculate the goodwill that will appear in the consolidated balance sheet of Pinnead and Subsidiary at December 31, 2014. Part 2: Calculate consolidated net income for 2014. Part 3: Calculate the noncontrolling interest share for 2014. Download Now