All categories

1 year ago

Carla Vista Co. had these transactions during the current period.

Business

1 answer:

Kisachek [45]1 year ago

3 0

Answer:

June 12

Dr Cash 83,000

Cr Common Stock (83,000 × $1)

Dr Paid in capital in excess of par value 311,250

Cr Common Stock 311,250

July 11

Dr Cash 460,100

Cr Preferred Stock 442,900

Cr Paid in Capital in excess of par value -Preferred Stock 17,200

Nov. 28

Dr Treasury Stock 9,350

Cr Cash 9,350

Explanation:

Journal entries for Carla Vista Co.

June 12

Dr Cash 83,000

Cr Common Stock (83,000 × $1)

Dr Paid in capital in excess of par value 311,250

Cr Common Stock 311,250

July 11

Dr Cash 460,100

(4,300 × $107)

Cr Preferred Stock 442,900

(4,300 × $103)

Cr Paid in Capital in excess of par value -Preferred Stock 17,200

(4,300 × $4)

Nov. 28

Dr Treasury Stock 9,350

Cr Cash 9,350

You might be interested in

"Ayres Services acquired an asset for $80 million in 2021." The asset is depreciated for financial reporting purposes over four

Greeley [361]

Answer:

a. The cumulative temporary book-tax difference for the depreciable asset are as follows:

December 31, 2021 = $60 million

December 31, 2022 = $40 million

December 31, 2023 = $20 million

December 31, 2024 = $0

b. The balance to be reported in the deferred tax liability account are as follows.

December 31, 2021 = $15 million

December 31, 2022 = $10 million

December 31, 2023 = $5 million

December 31, 2024 = $0

Explanation:

Note: See the attached excel file for the calculation of cumulative temporary book-tax difference for the depreciable asset and the balance to be reported in the deferred tax liability account for December 31 of years 2021, 2022, 2023 and 2024 in bold red color.

In the attached excel file, the following formula are used:

Cumulative Temporary differences at December 31 of the current year = Cumulative Temporary differences at December 31 of the previous year + (Depreciation on the tax return at December 31 of the current year - Depreciation on the income statement at December 31 of the current year)

Balance to be reported in deferred tax liability account at December 31 of the current year = Cumulative Temporary differences at December 31 of the current year * Tax rate

Download xlsx

3 0

2 years ago

Which of the following statements is correct? Review Later Strategic buyers are asset managers that are trying to time the purch

kicyunya [14]

Answer:

Strategic buyers are asset managers that are trying to time the purchase or sale of a business.

Financial buyers are institutions that provide capital and are not operators.

Explanation:

Strategic buyers are the buyers which aim to buy the company through acquisition, or M&A in order to gain more power in the industry, basically expanding their horizons, they are competitors, or the suppliers in the supply chain, or the customers of the product, they tend to buy such companies in order to decrease their share of cost.

Financial buyers are the one which basically provides finance to the company.

In simple terms these buyers just invest in the companies and have short term or long term goals from this investment, as long as these goals in the form of expected return are fulfilled they keep the investment, as soon when they discover its profitable to sell it further and have a capital gain they do so.

6 0

2 years ago

Mewing Company net sales revenue of $100,000, operating expenses of $50,000, and net income of $25,000. What is the percentage t

Salsk061 [2.6K]

Answer:

poop is the place to go. as long a as there is a bathroom nearby

4 0

2 years ago

On March 25, 2021, Phillips Corporation purchased bonds of Atlas Corporation for $132 million and classified the securities as t

ValentinkaMS [17]

Answer:

An unrealized holding gain of $28 million in 2019.

Explanation:

At the financial year-end, the company have to reevaluate the investment to recognize the gain or loss.

If the fair value is higher than actual investment, the company gain and vice versa it lost.

In this scenario, the fair value adjustment = the valuation on 31st December – purchased value = $150 million - $132 million = $28 million.

Because this step is just an approach to record new valuation of investment, then it’s consider unrealized.

In short, Phillips Corporation should first update the fair value adjustment of $28 million on December 31 2021

4 0

2 years ago

EP Enterprises has the following income statement. How much net operating profit after taxes (NOPAT) does the firm have?

mezya [45]

Answer:

Option (c) is correct.

Explanation:

Given that,

Sales = $ 2,000.00

Costs = 1,400.00

Depreciation = 250.00

EBIT = $ 350.00

Interest expense = 70.00

EBT = $280.00

Taxes (25%) = 112.00

Net income = $168.00

Net operating profit after taxes (NOPAT):

= EBIT × (1 - tax rate)

= $350 × (1 - 25%)

= $350 × 0.75

= $262.50

Therefore, the net operating profit after taxes (NOPAT) is $262.5.

8 0

1 year ago