ABC Co. is a public company that is required to file financial reports with the United States Securities and Exchange Commission (SEC). ABC acquired a significant related business, Bauer Co., through the registration and issuance of additional shares of common stock to the former stockholders of Bauer. Which of the following forms should ABC file with the SEC as a result of the acquisition of Bauer? Form 8-K. Form 10-K. Form 10-Q. Form S-1.
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ABC Co. acquired Bauer Co. through the registration and issuance of additional shares of common stock, indicating that this is a significant transaction that needs to be reported. Show more…
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Taha T.
4. The SEC requires registrants to have their quarterly financial statements reviewed by an independent accounting firm but does not mandate that a review report be included in a Form 10-Q. Under what circumstances must a review report accompany quarterly financial statements in a 10-Q? Why doesn't the SEC routinely require public companies to include their review reports in their 10-Q filings?
Akash M.
On January 1, 20X8, ABC Company acquired 100 percent of XYZ Company's common shares at underlying book value for cash. ABC uses the equity method in accounting for its ownership of XYZ. The Investment in XYZ account had a balance of $100,000 at December 31, 20X8. XYZ reported net income of $22,000 and paid dividends of $8,000 during 20X8, and no additional common stock was issued. On December 31, 20X9, the pre-closing trial balances of the two companies are as follows: ABC Co. XYZ Co. Item Debit Credit Debit Credit Current Assets $362,000 $111,000 Depreciable Assets $270,000 $170,000 Investment in XYZ Co. ? Other Expenses $120,000 $40,000 Depreciation Expense $40,000 $16,000 Dividends Declared $44,000 $36,000 Accumulated Depreciation $160,000 $71,000 Current Liabilities $70,000 $30,000 Long-Term Debt $150,000 $50,000 Common Stock $100,000 $51,000 Retained Earnings $220,000 $49,000 Sales $200,000 $122,000 Income from XYZ Co. ? a) Prepare all journal entries on ABC's books from January 1, 20X8 - December 31, 20X9. Meaning the JEs for sale of company from ABC's view, the JEs for dividends and how much equity they have at end of year. b) What is the balance of XYZ's Retained Earnings on January 1, 20X8. c) Prepare the eliminating entry necessary on December 31, 20X8. To close T accounts I think at start of year. d) Prepare the eliminating entry necessary on December 31, 20X9. To close T accounts at end of year I think. e) What is the consolidated balance of the Dividends Declared account at December 31, 20X9? ending balance?
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