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
Consider the following statements:I. If the financial asset is reclassified from amortized cost to FVOCI, the financial asset is measured at fair value at the reclassification date and a new effective interest rate must be determined based on the new carrying amount or fair value at reclassification date.II. The difference between previous carrying amount and fair value of a financial asset when reclassified from amortized cost to FVPL is recognized in profit or loss.III. The cumulative gain or loss previously recognized in other comprehensive incomeis reclassified to profit or loss at reclassification date when the financial asset is reclassified from FVOCI to FVPL.IV. The original effective rate is not adjust for financial assets that are reclassified from FVPL to FVOCI.State whether the foregoing statements are incorrect.a. I and II are incorrectb. II and III are incorrectc. I and IV are incorrectd. All the statements are incorrect
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