d. With respect to the deferred gain on intercompany sale, what effect (i.e., amount) will it have on the [AD]] entry necessary to prepare the consolidated financial statements for the year ended December 31, 2016? In addition, specify the account that will be debited and the account that will be credited in the [ADJ] entry for the effect of the deferred gain on intercompany sale. Prepare the [AD]] consolidation entry for December 31, 2016 to show the effect of the deferred gain on the intercompany sale. Consolidation Journal [AD] gain] Description [idep] e. Prepare the required [] consolidation entry in 2016 (assuming the subsidiary is still holding the equipment). Consolidation Journal Equipment Description 0 Debit D 0 D D 0 Debit 0 Credit 0 0 0 0 Credit 0 0 0 0 0

d. With respect to the deferred gain on intercompany sale, what effect (i.e., amount) will it have on the [AD]] entry necessary to prepare the consolidated financial statements for the year ended December 31, 2016? In addition, specify the account that will be debited and the account that will be credited in the [ADJ] entry for the effect of the deferred gain on intercompany sale. Prepare the [AD]] consolidation entry for December 31, 2016 to show the effect of the deferred gain on the intercompany sale. Consolidation Journal [AD] gain] Description [idep] e. Prepare the required [] consolidation entry in 2016 (assuming the subsidiary is still holding the equipment). Consolidation Journal Equipment Description 0 Debit D 0 D D 0 Debit 0 Credit 0 0 0 0 Credit 0 0 0 0 0

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter6: Audit Evidence

Section: Chapter Questions

Problem 15CYBK

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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

Please help! Cost method is extremely confusing to me! Zooming in to see the numbers helps! Dont Allow image format

d. With respect to the deferred gain on intercompany sale, what effect (i.e., amount) will it have on the [AD]] entry necessary to prepare the consolidated financial statements for the year ended December 31, 2016? In addition, specify the account that will be
debited and the account that will be credited in the [ADJ] entry for the effect of the deferred gain on Intercompany sale.
Prepare the [ADJ] consolidation entry for December 31, 2016 to show the effect of the deferred gain on the intercompany sale.
Consolidation Journal
[AD]]
[gain]
[idep]
Description
Equipment
+
÷
Description
e. Prepare the required [1] consolidation entry in 2016 (assuming the subsidiary is still holding the equipment).
Consolidation Journal
+
Debit
+
+
+
0
0
Debit
Credit
0
0
0
0
0
0
0
Credit
0
0
0
0
0

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Which of the following reclassifications of financial assets is permitted under PFRS 9? a. reclassification out of designated at FVPL to amortized costb. reclassification out of the FVOCI (election) measurement category to financial assetsmeasured at FVPLc. reclassification out of held for trading equity securities to amortized costd. reclassification from amortized cost and to FVPL
Which of the following is incorrect regarding measurement period? a. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the acquirer shall report in its financial statements provisional amounts for the items for which the accounting is incomplete. b. During the measurement period, the acquirer shall also recognise additional assets or liabilities if new information is obtained about facts and circumstances that existed as of the acquisition date and, if known, would have resulted in the recognition of those assets and liabilities as of that date. c. The measurement period ends as soon as the acquirer receives the information it was seeking about facts and circumstances that existed as of the acquisition date or learns that more information is not obtainable. d. During the measurement period, the acquirer shall prospectively adjust the provisional amounts recognised at the acquisition date…
for the following intercompany transaction state the principle to be used in accounting for intercompany gains on current and future consolidated income statements: Gains on the sale of depreciable fixed assets
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The consolidated balance of fixed assets will be affected by working paper entries involving all of the following, except: A. Excess of fixed asset FV over BV of the parent at the date of acquisition B. Amortization of the excess of fixed asset FV over BV of the subsidiary at the date of acquisition C. Realized gain or loss on intercompany sale of fixed asset D. Unrealized gain or loss on intercompany sale of fixed asset
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