2011 week 10 FOREIGN CURRENCY TRANSACTIONS

On that date subsequent to the completion of the

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Unformatted text preview: voting shares of the Seto Company for $720,000 in cash. On that date, subsequent to the completion of the business combination, the Statement of Financial Positions of the Peters and Seto Companies and the fair values of Seto's identifiable assets and liabilities were as follows: Cash And Accounts Receivable Inventories Investment In Seto Plant And Equipment (Net) Current Liabilities Long-Term Liabilities Common Stock Retained Earnings December 31, 20x2 Peters Seto $ 350,000 $ 200,000 950,000 500,000 720,000 -02,400,000 700,000 $4,420,000 $1,400,000 $ 400,000 1,000,000 1,000,000 2,020,000 $4,420,000 $ 100,000 400,000 800,000 100,000 $1,400,000 Fair Values Seto $200,000 450,000 800,000 $100,000 360,000 The Plant And Equipment of Seto on December 31, 20x2 has an estimated useful life of 10 years while the Long-Term Liabilities that were present on that date mature on December 31, 20x5. Both Companies use the straight line method of amortization. The Income Statements for the year ending December 31, 20x4 and the Statement of Financial Positions as at December 31, 20x4 of the Peters and Seto Companies are as follows: Peters and Seto Companies Income Statements For The Year Ending December 31, 20x4 Sales Other Revenues Cost Of Goods Sold Depreciation Expense Other Expenses Net Income © CMA Ontario, 2011 Peters $2,500,000 100,000 2,600,000 1,200,000 400,000 800,000 2,400,000 $200,000 Seto $1,300,000 30,000 1,330,000 750,000 250,000 180,000 1,180,000 $ 150,000 11 of 20 CMA Accelerated Program - 2011/2012 Lecture Student Weekly File - Week 10 Peters and Seto Companies Statement of Financial Positions As At December 31, 20x4 $1,500,000 $ 300,000 1,000,000 1,000,000 2,250,000 $ 40,000 400,000 800,000 260,000 $4,550,000 Current Liabilities Long-Term Liabilities Common Stock Retained Earnings Seto $ 70,000 180,000 400,000 $4,550,000 Cash Accounts Receivable Inventories Investment In Seto Plant And Equipment (Net) Peters $ 100,000 430,000 1,150,000 720,000 2,1 50,000 $1,500,00...
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This note was uploaded on 01/07/2014 for the course ACCOUNTING 346 taught by Professor William during the Fall '12 term at DeVry Chicago.

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