Client Understanding Paper Cayce Harris ACC-541 December 23, 2013 Thomas Gruber Cayce Harris 715 Madison Ln. Florissant, MO 63031 December 23, 2013 Client Understanding CEO CU Corp. 12345 S. Main St. St. Louis, MO 63031 Dear Client: Thank you for choosing University Accounting for your accounting needs. We are confident that you will be very satisfied with the services that we offer. The information enclosed will help you make the most of our services, as well as, address
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FASC Research Project Fall (2014) QUESTIONS (http://aaahq.org/ascLogin.cfm ) In order to complete this assignment you will need to access the FASB Financial Accounting Standards Codification database. The related information for this is posted on Blackboard for this course. The UH copy of the FASB Financial Accounting Standards Codification (“FASC”) can be accessed at: http://aaahq.org/ascLogin.cfm. The FASC is the ONE AND ONLY source of the technical GAAP standards. Other sources are no
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CHAPTER 3 CONSOLIDATION SUBSEQUENT TO DATE OF ACQUISITION QUESTION SOLUTIONS 3-1. An 80 percent ownership requires the preparation of consolidated financial statements. Regardless of the method used to account for the investment on the parent’s financial records, the investment income or dividend income is replaced on the consolidated income statement by the subsidiary’s revenue and expense accounts. The equity method is required if the parent prepares separate financial statements. Search term
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INTERMEDIATE (FINANCIAL) ACCOUNTING I SUBCLASS KLM CASE ANALYSIS QUESTIONS CASE 1 – REVENUE RECOGNITION AND EARNINGS MANAGEMENT INTERMEDIATE (FINANCIAL) ACCOUNTING I SUBCLASS KLM CASE ANALYSIS QUESTIONS CASE 2 – REVENUE RECOGNITION FOR A CONSTRUCTION PROJECT HKU Technology Inc. (Hereafter, HKU Tech) is a large construction contracting firm that serves a variety of industrial customers that purchase machinery and equipment from HKU Tech. HKU Tech’s business primarily involves the design and manufacture
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sale of the shares; or by the retained earnings method, where the issuance cost are charged directly to retained earnings. c) $91,000 of goodwill was included in the acquisition costs. Acquisition Cost Fair Value of Bagley’s Net Assets (1,638,000 – 689,000) Goodwill d) Journal entry for Davis Inc. (cash): Current assets Property, plant & equipment Patents Goodwill Current liabilities Long-term debt Cash $1,040,000 949,000 91,000 507,000 1,053,000 78,000 91,000 273,000 416,000 1,040,000 Professional
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Not Transferred To the Corporation ................................................................................. 4 Assets Not Transferred Under ITA85(1) ...................................................................................... 4 Goodwill ..................................................................................................................................... 5 Assets Transferred under ITA 85(1) .........................................................................
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Horizontal Analysis An increase in the total assets in 2010 by 18.28% as compared to base year 2009 can be attributed to the large percentage of increase in noncurrent assets. These accounts include intangible assets, goodwill, and other noncurrent assets. In addition to those, some current accounts such as prepaid expenses and biological assets contributed also to the increase in total assets. Using 2010 as a base year, there was a 28.27 % increase in total assets by 2011. This is largely
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cost is allocated as follows: Purchase price Fair value of net identifiable assets acquired Goodwill € 95,000 80,000 € 15,000 A company’s statement of financial position after the business combination is not a consolidated statement of financial position and would be as shown below. A COMPANY LTD. Statement of Financial Position January 1, Year 2 Assets (300,000 + 109,000 – 95,000) Goodwill € 314,000 15,000 € 329,000 Liabilities (120,000 + 29,000) Shareholders’ equity Ordinary
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Case 11-9 Yes management should have performed an interim goodwill step 1 impairment test as of September 30, 2012. The FASB Accounting Standards Codification detailed when an impairment test for goodwill is needed based on various circumstances. To determine whether a two-step test is necessary a qualitative assessment must be completed first. One of the most important pieces of information of Galaxy Sports Inc. at the September 30, 2012 date was the current market environment. Galaxy had experienced
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QUESTION 1 a) After the acquisition, Company A will end up with 50,000 common shares of Company A, Company L will end up with 27,000 shares of Company A, and Company M will end up with 25,000 shares of Company A. Company A will have the majority of voting shares in a combination of two or more companies therefore, they are the acquirer. Company A is the group with the largest number of voting shares therefore they are the acquirer. ;lCompany A shareholders hold 50,000 shares Company
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