Answers to Exam 1 Form B Summer I 2009

Answers to Exam 1 Form B Summer I 2009 - Accounting 401...

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Accounting 401 Answers Exam 1 – Form B Summer I 2009 Part I – Multiple Choice 1. c 2. c 3. d 4. b 5. b 6. e 7. e 8. d 9. b 10.a Part II 1. Schedule to show balance in Investment account at end of 2010: Acquisition of Cable Corp. $540,000 Share of net income – 2009 54,000 Share of dividends – 2009 (24,000) Share of net income – 2010 86,000 Share of dividends – 2010 (24,000) Investment account balance $632,000 2. Consolidated retained earnings is $638,000 Parent balance – 1/1/2009 $520,000 Income for 2009 100,000 Dividends – 2009 (25,000) Income – 2010 68,000
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Dividends – 2010 (25,000) Consolidated retained earnings balance $638,000 Part III 1. 1. $400 + 400 + 20 = $820 2. $400 + 400 = $800 3. $1,080 + 280 + 10 = $1,370 4. Fair value of consideration $820 Fair value of net assets (1,030) Excess (210) 40% of difference allocated to Land (210 x 0.4) 84 $600 + 360 + 40 – 84 = $916 5. $330 + 40 = $370
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Journal Entries: Debit Credit a. Current assets 350,000 Plant assets 810,000
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This note was uploaded on 03/09/2012 for the course ACCT 401 taught by Professor Staff during the Summer '08 term at Texas A&M.

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Answers to Exam 1 Form B Summer I 2009 - Accounting 401...

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