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\nVisit Below Link, To Download This Course:\n\nhttps://www.tutorialsservice.net/product/acc-401-module-2-exam-1-latest/\n\nOr \nEmail us on\nSUPPORT@TUTORIALSSERVICE.NET\n\nACC 401 Module 2 Exam 1 Latest\nACC401\nACC 401 Module 2 Exam 1 Latest\nQuestion 1 (20 points)\nOn 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:\n

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acc 401 module 2 exam 1 latest

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

capital stock 5 par 2 000 000 500 000

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

on january 1 2013 pailor inc purchased

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:

question 5 20 points

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.

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