Q&A Hero

Q: A company paid $2,500 cash to satisfy a previously recorded account payable. Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

Q: Bird Corporation has several subsidiaries that are included in its consolidated financial statements and several other investments in corporations that are not consolidated. In its year-end trial balance, the following intercompany balances appear. Ostrich Corporation is the unconsolidated company; the rest are consolidated. Due from Pheasant Corporation $25,000 Due from Turkey Corporation 5,000 Cash advance to Skylark Company 8,000 Cash advance to Starling 15,000 Current receivable from Ostrich 10,000 What amount should Bird report as intercompany receivables on its consolidated balance sheet? A) $0 B) $10,000 C) $30,000 D) $63,000

Q: Which of the following is true for the perfectly competitive firm?A) Price and MR are always equal. B) AR is less than price.C) AR is more than price. D) Price elasticity of demand is equal to 1.

Q: A company sends a $1,500 bill to a customer for delivery services rendered. Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

Q: Use the following information to answer question(s) below.On January 1, 2011, Punch Corporation purchased 80% of the common stock of Soopy Co. Separate balance sheet data for the companies at the acquisition date(after the acquisition) are given below:Punch SoopyCash $34,000 $206,000Accounts Receivable 144,000 26,000Inventory 132,000 38,000Land 68,000 32,000Plant assets 700,000 300,000Accum. Depreciation (240,000) (60,000)Investment in Soopy 392,000Total assets $ 1,230,000 $ 542,000Accounts payable $206,000 $142,000Capital stock 800,000 300,000Retained earnings 224,000 100,000Total liabilities & equities $ 1,230,000 $ 542,000At the date of the acquisition, the book values of Soopy's net assets were equal to the fair value except for Soopy's inventory, which had a fair value of $60,000.Determine below what the consolidated balance would be for each of the requested accounts.What is the amount of total assets?A) $1,380,000B) $1,402,000C) $1,470,000D) $1,875,000

Q: As a firm continues to produce additional output, which of the following will continue to decline as output expands?A) average total costs B) marginal costsC) average fixed costs D) opportunity costs

Q: Dolly Barton began Barton Office Services in October and during that month completed these transactions:a. Invested $10,000 cash, and $15,000 of computer equipment.b. Paid $500 cash for an insurance premium covering the next 12 months.c. Completed a word processing assignment for a customer and collected $1,000 cash.d. Paid $200 cash for office supplies.e. Paid $2,000 for October's rent.Prepare journal entries to record the above transactions. Explanations are unnecessary.

Q: Efficient markets theory suggests that purchasing the published reports of financial analystsA) is likely to increase oneʹs returns by an average of 5 percent.B) is likely to increase oneʹs returns by an average of about 3 to 5 percent.C) is not likely to increase financial returns.D) will increase financial returns in the first year but not in following years.

Q: The following is a list of accounts and identification letters A through J for Shannon Management Co.:Use the form below to identify the type of account and its normal balance. The first item is filled in as an example.

Q: The most likely source of investment funds for a proprietorship isA) sales of stocks. B) sales of bonds.C) loans from banks. D) the personal funds of the owner.

Q: Indicate whether a debit or credit entry would be made to record the following changes in each account. a. To decrease Cash b. To increase Owner, Capital c. To decrease Accounts Payable. d. To increase Salaries Expense. e. To decrease Supplies. f. To increase Revenue. g. To decrease Accounts Receivable. h. To increase Owner, Withdrawals.

Q: In a map showing three indifference curves a consumer is most well off onA) the curve which is closest to the origin of the coordinate axes.B) the curve which is most farther away from the coordinate axes. C) The curve that is in the middle.D) none of the above

Q: Identify each of the following items would likely serve as a source document by marking an X in the appropriate column. The first one is done as an example

Q: Describe the link between the income statement, the statement of owner's equity, and the balance sheet.

Q: If marginal utility is negative,A) total utility increases at a decreasing rate.B) the consumer considers extra units of the commodity to be a ʺbad.ʺC) the consumer will want to consume the unit only if it is free.D) the consumer likes the commodity, but not as much as he or she once did.

Q: What is a trial balance? What is its purpose?

Q: If personal computer prices rise by 1 percent, we would expect the number of color printers purchased toA) increase. B) decrease.C) be equal to ten. D) be equal to one.

Q: Explain the recording and posting processes.

Q: A parent corporation owns 55% of the outstanding voting common stock of one domestic subsidiary. The parent has control over the subsidiary. Which of the following statements is correct? A) The parent corporation must prepare consolidated financial statements for the economic entity. B) The parent corporation must use the fair value method. C) The parent company may use the equity method but the subsidiary cannot be consolidated. D) The parent company can use the equity method or the fair value/cost method.

Q: The responsiveness of quantity demanded of a good to changes in its price is the A) cross elasticity of demand. B) price elasticity of supply. C) income elasticity. D) price elasticity of demand.

Q: A parent company uses the equity method to account for its wholly-owned subsidiary. Which of the following will be a correct procedure for the Investment account? A) A debit for a subsidiary loss and a credit for dividends received B) A credit for subsidiary income and a debit for dividends received C) A debit for subsidiary dividends received and a credit for a subsidiary loss D) A credit for a subsidiary loss and a credit for dividends received

Q: Explain the debt ratio and its use in analyzing a company's financial condition.

Q: In the above figure, if a firm is cleaning up Q3 units of pollution, it is anA) efficient solution because marginal social benefits are greater than marginal social costs.B) efficient solution because marginal social benefits are equal to marginal social costs.C) inefficient solution because marginal social benefits are greater than marginal social costs.D) inefficient solution because marginal social costs are greater than marginal social benefits.

Q: Which of the following will be debited to the Investment account when the equity method is used? A) Investee net losses B) Investee net profits C) Investee declaration of dividends D) Depreciation of excess purchase cost attributable to investee equipment

Q: The USDA threshold income level was originally based on the cost ofA) housing. B) transportation.C) basic clothing. D) a nutritionally adequate food plan.

Q: Explain debits and credits and their role in the accounting system.

Q: Pattalle Co purchases Senday, Inc. on January 1 of the current year for $70,000 more than the fair value of Senday's net assets. Push-down accounting is used. At that date, the following values exist:Requirement: Determine what amounts will appear in the listed accounts on Pattalle's general ledger, on Senday's general ledger, and on the consolidated balance sheet immediately following the acquisition. Make sure you post the entry to record the investment on Pattalle's books.

Q: The MFC curveA) lies below the labor supply curve, when the labor supply curve is upward sloping.B) lies above the labor supply curve, when the labor supply curve is upward sloping. C) is the labor supply curve.D) is parallel to the labor supply curve, when the labor supply curve is downward sloping.

Q: Explain the difference between a ledger and a chart of accounts.

Q: On January 1, 2011, 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, 2011 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 Requirements: 1. Calculate the goodwill that will appear in the consolidated balance sheet of Pinnead and Subsidiary at December 31, 2011. 2. Calculate consolidated net income for 2011. 3. Calculate the noncontrolling interest share for 2011.

Q: Explain how accounts are used in recording information about transactions.

Q: According to the text, private sector union membership has fallen toA) about 8 percent of the private -sector labor force. B) zero.C) about 25 percent of all U.S. workers.D) about 12 percent of the entire workforce.

Q: Petra Corporation paid $500,000 for 80% of the outstanding voting common stock of Sizable Corporation on January 2, 2011 when the book value of Sizable's net assets was $460,000. The fair values of Sizable's identifiable net assets were equal to their book values except as indicated below. Book Fair Value Value Inventories (sold in 2011) $80,000 $112,000 Buildings-net (15-year life) 200,000 170,000 Note Payable (paid in 2011) 20,000 21,250 Sizable reported net income of $75,000 during 2011; dividends of $35,000 were declared and paid during the year. Required: 1. Prepare a schedule to allocate the fair value/book value differential to the specific identifiable assets and liabilities. 2. Determine Petra's income from Sizable for 2011. 3. Determine the correct balance in the Investment in Sizable account as of December 31, 2011.

Q: Describe source documents and their purpose.

Q: Suppose that in a computer factory, if there is 1 worker, 80 computers are produced per week.If there are 2 workers, 150 computers are produced per week. If there are 3 workers, 210 computers are produced per week. Given this information, the marginal product of the third worker isA) 210 computers per week. B) 70 computers per week. C) 60 computers per week. D) 50 computers per week.

Q: Passcode Incorporated acquired 90% of Safe Systems International for $540,000, the market value at that time. On the date of acquisition, Safe Systems showed the following balances on their ledger: Book Value Fair Value Current Assets $200,000 $200,000 Buildings 290,000 320,000 Equipment 410,000 430,000 Liabilities (350,000) (360,000) Safe Systems has determined that their buildings have a remaining life of 10 years, and their equipment has a remaining useful life of 8 years. Requirement 1: Calculate the amount of goodwill that will appear on the general ledger of Passcode and Safe Systems, as well as the amount that will appear on the consolidated financial statements. Requirement 2: Calculate the amount of amortization that will appear on the consolidated financial statements for buildings and equipment, and explain how this amortization of excess fair value is shown on the separate general ledgers of Passcode and Safe Systems.

Q: List the steps in processing transactions.

Q: How does social regulation differ from economic regulation?

Q: David Roberts is a real estate appraiser. Shown below are (a) several accounts in his ledger with each account preceded by an identification number, and (b) several transactions completed by Roberts. Indicate the accounts debited and credited when recording each transaction by placing the proper account identification numbers to the right of each transaction.

Q: Pool Industries paid $540,000 to purchase 75% of the outstanding stock of Swimmin Corporation, on December 31, 2011. Any excess fair value over the identified assets and liabilities is attributed to goodwill. The following year-end information was available just before the purchase:Using the data provided above, assume that Pool decided rather than paying $540,000 cash, Pool issued 10,000 shares of their own stock to the owners of Swimmin. At the time of issue, the $10 par value stock had a market value of $60 per share.Required: Prepare Pool's consolidated balance sheet on December 31, 2011.

Q: An industry battle between incompatible product formats can occur if competing firms selling compatible products A) take into account network effects. B) fail to take into account network effects. C) take into account economies of scale. D) fail to take into account economies of scale.

Q: Vicki Lake is a computer consultant. Shown below are (a) several accounts in her ledger with each account preceded by an identification number, and (b) several transactions completed by Lake. Indicate the accounts debited and credited when recording each transaction by placing the proper account identification numbers to the right of each transaction.

Q: Patterson Company acquired 90% of Starr Corporation on January 1, 2011 for $2,250,000. Starr had net assets at that time with a fair value of $2,500,000. At the time of the acquisition, Patterson computed the annual excess fair-value amortization to be $20,000, based on the difference between Starr's net book value and net fair value. Assume the fair value exceeds the book value, and $20,000 pertains to the whole company. Separate from any earnings from Starr, Patterson reported net income in 2011 and 2012 of $550,000 and $575,000, respectively. Starr reported the following net income and dividend payments: 2011 2012 Net Income $150,000 $180,000 Dividends $30,000 $30,000 Required: Calculate the following: Investment in Starr shown on Patterson's ledger at December 31, 2011 and 2012. Investment in Starr shown on the consolidated statements at December 31, 2011 and 2012. Consolidated net income for 2011 and 2012. Noncontrolling interest balance on Patterson's ledger at December 31, 2011 and 2012. Noncontrolling interest balance on the consolidated statements at December 31, 2011 and 2012.

Q: An oligopoly is a market situation in whichA) there are many firms producing differentiated products.B) there is a single firm producing several varieties of a product. C) all the sellers act independently of the others.D) there are very few sellers and they recognize their strategic dependence on one another.

Q: Polaris Incorporated purchased 80% of The Solar Company on January 2, 2011, when Solar's book value was $800,000. Polaris paid $700,000 for their acquisition, and the fair value of noncontrolling interest was $175,000. At the date of acquisition, the fair value and book value of Solar's identifiable assets and liabilities were equal. At the end of the year, the separate companies reported the following balances: Polaris Solar Current assets 5,700,000 1,250,000 Plant & equipment 15,200,000 3,400,000 Investment in Solar 780,000 0 Goodwill 0 0 Current liabilities 3,600,000 950,000 Long-term debt 11,680,000 2,800,000 Stockholder's Equity 6,400,000 900,000 Requirement 1: Calculate consolidated balances for each of the accounts as of December 31, 2011. Requirement 2: Assuming that Solar has paid no dividends during the year, what is the ending balance of the noncontrolling interest in the subsidiary?

Q: The following accounts appear on either the Income Statement (IS) or Balance Sheet (BS). In the space provided next to each account write the letters, IS or BS, that identify the statement on which the account appears.1. Owner, Capital2. Wages Payable3. Cash4. Rent Expense5. Unearned Fees Revenues6. Accounts Payable7. Office Equipment8. Notes Receivable9. Rent Expense10. Fees Revenue

Q: When Crest claims that its toothpaste product whitens teeth more than the products of its competitors, Crest is practicingA) product differentiation. B) libel.C) marginal revenue pricing. D) marginal cost pricing.

Q: The consolidated balance sheet of Pasker Corporation and Shishobee Farm, its 80% owned subsidiary, as of December 31, 2011, contains the following accounts and balances: Pasker Corporation and Subsidiary Consolidated Balance Sheet at December 31, 2011 Balances Cash $57,000 Accounts receivable-net 210,000 Inventories 330,000 Other current assets 255,000 Plant assets-net 870,000 Goodwill from consolidation 117,000 $1,839,000 Accounts payable $219,000 Other liabilities 210,000 Capital stock 1,050,000 Retained earnings 240,000 Noncontrolling interest 120,000 $1,839,000 Pasker Corporation acquired its interest in Shishobee Farm on January 1, 2011, when Shishobee Farm had $450,000 of Capital Stock and $210,000 of Retained Earnings. Shishobee Farm's net assets had fair values equal to their book values when Pasker acquired its interest. No changes have occurred in the amount of outstanding stock since the date of the business combination. Pasker uses the equity method of accounting for its investment. Required: Determine the following amounts: 1. The balance of Pasker's Capital Stock and Retained Earnings accounts at December 31, 2011. 2. Cost of Pasker's purchase of Shishobee Farm on January 1, 2011.

Q: Identify each of the following accounts as a revenue (R), expense (E), asset (A), liability (L), or equity (OE) by placing initials (R,E,A,L or OE) in the blanks.1. Unearned Fee Revenue2. Fees Revenue3. Owner, Capital4. Supplies5. Salary Expense6. Cash7. Accounts Receivable8. Prepaid Insurance9. Accounts Payable10. Office Furniture11. Equipment12. Owner, Withdrawals

Q: PQTC$1310$8$1215$30$1120$68$1025$128$930$208$835$308Refer to the above table. Given the demand and cost schedules, what is the profit maximizing quantity for this monopolist?A) 15 B) 20 C) 25 D) 30

Q: On July 1, 2011, 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. Requirement 1: Prepare the journal entry that Polliwog would record at the date of acquisition on their general ledger. Requirement 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.

Q: Match the following definitions and terms by placing the letter that identifies the best definition in the blank space next to the term.a. A simple form used as a helpful tool in understanding the effect of transactions and events on specific accounts.b. The most flexible type of journal, it can be used to record any kind of transaction.c. A journal entry that affects at least three accounts.d. A written promise from a customer to pay a definite sum of money on a specified future date.e. A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense item.f. A list of all accounts used by a company and the identification number assigned to each account.g. The process of transferring journal entry information to the ledger.h. A list of accounts and their balances at a point in time; the total debit balances should equal the total credit balances.i. A column in journals where individual account numbers are entered when entries are posted to ledger accounts.j. Liabilities created when customers pay in advance for products or services; satisfied by delivering the products or services in the future.1)Account2)General journal3)Posting reference column4)T-account5)Note receivable6)Chart of accounts7)Posting8)Compound journal entry9)Trial Balance10)Unearned revenues

Q: The motive that drives firms to enter or exit an industry isA) utility. B) governmental.C) economic profit. D) accounting costs.

Q: Passerby International purchased 80% of Standaround Company's outstanding common stock for $200,000 on January 2, 2011. At that time, the fair value of Standaround's net assets were equal to the book values. The balance sheets of Passerby and Standaround at January 2, 2011 are summarized as follows: Passerby Standaround Assets $1,600,000 $470,000 Liabilities $840,000 $230,000 Capital stock 360,000 50,000 Retained earnings 400,000 190,000 Required: Determine the consolidated balances as of January 2, 2011 for the following five balance sheet line items: Goodwill, Liabilities, Capital Stock, Retained Earnings, and Noncontrolling Interest.

Q: The perfectly competitive, profit-maximizing rate of productionA) occurs at the point at which marginal revenue is equal to marginal cost.B) occurs at the point at which the difference between marginal revenue and marginal cost is maximized.C) is not measurable for a perfectly competitive firm.D) ignores the relation of total revenues and total costs.

Q: Push-down accounting A) requires a subsidiary to use the same accounting principles as its parent company. B) is required when the parent company uses the equity method to account for its investment in a subsidiary. C) is required when the parent company uses the cost method to account for its investment in a subsidiary. D) requires the subsidiary to record the subsidiary's assets and liabilities at fair value at the acquisition date.

Q: The ratio of total costs to the quantity produced is referred to asA) average fixed costs. B) average variable costs. C) marginal costs. D) average total costs.

Q: In the consolidated income statement of Wattlebird Corporation and its 85% owned Forest subsidiary, the noncontrolling interest share was reported at $45,000. Assume the book value and fair value of Forest's net assets were equal at the acquisition date. What amount of net income did Forest have for the year? A) $52,941 B) $38,250 C) $235,000 D) $300,000

Q: Which of the following groups of accounts are not balance sheet accounts? A.Assets. B.Liabilities. C.Revenues. D.Equity accounts. E.All of these are balance sheet accounts.

Q: Which of the following statements about stock market brokers and dealers is TRUE?A) Brokers earn commissions from trading stocks but dealers try to profit from trading stocks.B) Brokers try to profit from trading stocks but dealers earn commissions from trading stocks. C) Both brokers and dealers earn commissions from trading stocks.D) Both brokers and dealers try to profit from trading stocks.

Q: Pinata Corporation acquired an 80% interest in Smackem Inc. for $130,000 on January 1, 2011, when Smackem had Capital Stock of $125,000 and Retained Earnings of $25,000. Assume the fair value and book value of Smackem's net assets were equal on January 1, 2011. Pinata's separate income statement and a consolidated income statement for Pinata and Subsidiary as of December 31, 2011, are shown below. Pinata Consolidated Sales revenue $145,850 $234,750 Income from Smackem 12,600 Cost of sales (60,000) (100,000) Other expenses (20,000) (50,000) Noncontrolling interest share (3,150) Net income $ 78,450 $ 81,600 Smackem's separate income statement must have reported net income of A) $13,750. B) $14,750. C) $15,750. D) $15,250.

Q: A $130 credit to Office Equipment was credited to Fees Earned by mistake. By what amounts are the accounts under- or overstated as a result of this error? A.Office Equipment, understated $130; Fees Earned, overstated $130. B.Office Equipment, understated $260; Fees Earned, overstated $130. C.Office Equipment, overstated $130; Fees Earned, overstated $130. D.Office Equipment, overstated $130; Fees Earned, understated $130. E.Office Equipment, overstated $260; Fees Earned, understated $130.

Q: Unlimited liability exists whenA) the profits of the firm are taxed once. B) a firm dissolves when the owner dies. C) a corporation exists.D) the personal assets of the owner of a firm can be seized to pay off the firmʹs debts.

Q: Pomograte Corporation bought 75% of Sycamore Company's common stock, with a book value of $900,000, on January 2, 2011 for $750,000. The law firm of Dewey, Cheatam and Howe was paid $55,000 to facilitate the purchase. At what amount should Pomograte's Investment in Sycamore account be reported on January 2, 2011? A) $675,000 B) $695,000 C) $750,000 D) $845,000

Q: Of the following errors, which one by itself will cause the trial balance to be out of balance? A.A $200 cash salary payment posted as a $200 debit to Cash and a $200 credit to Salaries Expense. B.A $100 cash receipt from a customer in payment of his account posted as a $100 debit to Cash and a $10 credit to Accounts Receivable. C.A $75 cash receipt from a customer in payment of his account posted as a $75 debit to Cash and a $75 credit to Cash. D.A $50 cash purchase of office supplies posted as a $50 debit to Office Equipment and a $50 credit to Cash. E.An $800 prepayment from a customer for services to be rendered in the future was posted as an $800 debit to Unearned Revenue and an $800 credit to Cash.

Q: What is the marginal rate of substitution between two goods and how is it related to the indifference curve?

Q: Pental Corporation bought 90% of Sedacor Company's common stock at its book value of $400,000 on January 1, 2011. During 2011, Sedacor reported net income of $130,000 and paid dividends of $40,000. At what amount should Pental's Investment in Sedacor account be reported on December 31, 2011? A) $400,000 B) $481,000 C) $490,000 D) $530,000

Q: If the Debit and Credit column totals of a trial balance are equal, then: A.All transactions have been recorded correctly. B.All entries from the journal have been posted to the ledger correctly. C.All ledger account balances are correct. D.The total debit entries and total credit entries are equal. E.The balance sheet would be correct.

Q: A rational individual will never consume a unit of a good if itsA) marginal utility is diminishing.B) marginal utility is less than average utility.C) marginal utility is increasing. D) marginal utility is negative.

Q: Pardo Corporation paid $140,000 for a 70% interest in Spedeal Inc. on January 1, 2011, when Spedeal had Capital Stock of $50,000 and Retained Earnings of $100,000. Fair values of identifiable net assets were the same as recorded book values. During 2011, Spedeal had income of $40,000, declared dividends of $15,000, and paid $10,000 of dividends. On December 31, 2011, the consolidated financial statements will show A) investment in Spedeal account of $170,000. B) investment in Spedeal account of $165,000. C) consolidated goodwill of $50,000. D) consolidated dividends receivable of $5,000.

Q: The credit purchase of a delivery truck for $4,700 was posted to Delivery Trucks as a $4,700 debit and to Accounts Payable as a $4,700 debit. What effect would this error have on the trial balance? A.The total of the Debit column of the trial balance will exceed the total of the Credit column by $4,700. B.The total of the Credit column of the trial balance will exceed the total of the Debit column by $4,700. C.The total of the Debit column of the trial balance will exceed the total of the Credit column by $9,400. D.The total of the Credit column of the trial balance will exceed the total of the Debit column by $9,400. E.The total of the Debit column of the trial balance will equal the total of the Credit column.

Q: If goods are completely unrelated, their cross price elasticity willA) be greater than one. B) be less than one. C) be equal to zero. D) be negative.

Q: In the preparation of consolidated financial statements, which of the following intercompany transactions must be eliminated as part of the preparation of the consolidation working papers? A) All revenues, expenses, gains, losses, receivables, and payables B) All revenues, expenses, gains, and losses but not receivables and payables C) Receivables and payables but not revenues, expenses, gains, and losses D) Only sales revenue and cost of goods sold

Q: In which of the following situations would the trial balance not balance? A.A $1,000 collection of an account receivable was erroneously posted as a debit to Accounts Receivable and a credit to Cash. B.The purchase of office supplies on account for $3,250 was erroneously recorded in the journal as $2,350 debit to Office Supplies and credit to Accounts Payable. C.A $50 cash receipt for the performance of a service was not recorded at all. D.The purchase of office equipment for $1,200 was posted as a debit to Office Supplies and a credit to Cash for $1,200. E.The cash payment of a $750 account payable was posted as a debit to Accounts Payable and a debit to Cash for $750.

Q: The price elasticity of demand measuresA) the responsiveness of quantity demanded to a change in price.B) the responsiveness of price to a change in competition.C) the change in quantity demanded due to a change in price of a substitute good.D) the change in price due to a change in demand.

Q: Percy Inc. acquired 80% of the outstanding stock of Sillson Company in a business combination. The book values of Sillson's net assets are equal to the fair values except for the building, whose net book value and fair value are $500,000 and $800,000, respectively. At what amount is the building reported on the consolidated balance sheet? A) $400,000 B) $500,000 C) $640,000 D) $800,000

Q: A trial balance taken at year-end showed total credits exceed total debits by $4,950. This discrepancy could have been caused by: A.An error in the general journal where a $4,950 increase in Accounts Receivable was recorded as an increase in Cash. B.A net income of $4,950. C.The balance of $49,500 in Accounts Payable being entered in the trial balance as $4,950. D.The balance of $5,500 in the Office Equipment account being entered on the trial balance as a debit of $550. E.An error in the general journal where a $4,950 increase in Accounts Payable was recorded as a decrease in Accounts Payable.

Q: In the above figure, if a firm is cleaning up Q2 units of pollution, it is anA) efficient solution, because marginal social benefits are greater than marginal social costs. B) efficient solution, because marginal social benefits are equal to marginal social costs.C) inefficient solution, because marginal social benefits are greater than marginal social costs. D) inefficient solution, because marginal social costs are greater than marginal social benefits.

Q: On July 1, 2011, when Salaby Company's total stockholders' equity was $360,000, Pogana Corporation purchased 14,000 shares of Salaby's common stock at $30 per share. Salaby had 20,000 shares of common stock outstanding both before and after the purchase by Pogana, and the book value of Salaby's net assets on July 1, 2011 was equal to the fair value. On a consolidated balance sheet prepared at July 1, 2011, goodwill would be A) $60,000. B) $85,714. C) $100,000. D) $240,000.

Q: A $15 credit to Sales was posted as a $150 credit. By what amount is Sales in error? A.$150 understated. B.$135 overstated. C.$150 overstated. D.$15 understated. E.$135 understated.