P200,000 and declares no dividends. What is the carrying amount of the investment in associate on December 31, 20x2? of a. 550,000 b. 590,000 c. 600,000 d. 640,000 PROBLEM 2: FOR CLASSROOM DISCUSSION 1. On January 1, 20x1, Entity A acquires 30% interest in Entity B for P600,000. Entity B reports profit of P200,000 and declares dividends of P50,000 in 20x1. How much is the carrying amount of the investment in associate on December 31, 20x1? a. 600,000 b. 660,000 c. 645,000 d. 630,000 2 Entity A uses the equity method in accounting for its 20% interest in Entity B. Entity B reports profit of P4M for the period. Entity B has outstanding 5% cumulative preference shares with an aggregate par value of P10M. Entity A holds none of the preference shares. Entity B did not declare dividends on the preference shares in the last three vears. including the current year. How much is Entity A's share in the profit of Entity B? r's a. 800,000 b. 700,000 c. 600,000 d. 500,000 3. Entity A acquires 20% interest in Entity B on September 1,

P200,000 and declares no dividends. What is the carrying amount of the investment in associate on December 31, 20x2? of a. 550,000 b. 590,000 c. 600,000 d. 640,000 PROBLEM 2: FOR CLASSROOM DISCUSSION 1. On January 1, 20x1, Entity A acquires 30% interest in Entity B for P600,000. Entity B reports profit of P200,000 and declares dividends of P50,000 in 20x1. How much is the carrying amount of the investment in associate on December 31, 20x1? a. 600,000 b. 660,000 c. 645,000 d. 630,000 2 Entity A uses the equity method in accounting for its 20% interest in Entity B. Entity B reports profit of P4M for the period. Entity B has outstanding 5% cumulative preference shares with an aggregate par value of P10M. Entity A holds none of the preference shares. Entity B did not declare dividends on the preference shares in the last three vears. including the current year. How much is Entity A's share in the profit of Entity B? r's a. 800,000 b. 700,000 c. 600,000 d. 500,000 3. Entity A acquires 20% interest in Entity B on September 1,

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Hewlard Pocket's market value balance sheet is given. Assets A. Original balance sheet Cash Other assets Value of firm $ 150,000 Debt Shares outstanding = 100,000 Price per share = $1,100,000/100,000 = $11 Liabilities and Shareholders' Equity 950,000 Equity $ 1,100,000 Value of firm a. Stock price b. Stock price Pocket wins a lawsuit and is paid $200,000 in cash. The market value of the equity rises by that amount, and Pocket decides to make a one-off payout of $3.00 per share. $0 1,100,000 $ 1,100,000 a. What will be Pocket's stock price after the payout if the payout comes as a cash dividend? b. What will be Pocket's stock price after the payout if the payout comes as a share repurchase? Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. per share per share
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1. Profit for the fiscal year 20XX is transferred to report it as from previous fiscal years. Accumulated losses are amortized. 3. The legal reserve is increased. 4. The partners decide to make a cash contribution for future capital increases in the amount of $ 100,000. 5. 1,500 shares are placed among new investors, premium $ 30 per share. Payroll value per share $ 100 6. Cash dividends of $ 50,000 are distributed. 7. Dividends are distributed in shares for $ 75,000. 8. The 20XY profit is recorded for $ 81,500. Based on the above, answer the following: a. What is the amount to increase the legal reserve? b. How much is the premium for the sale of shares? c. What is the amount available for the payment of dividends? d. How much will be left as a remainder pending distribution?
Make a calculation comparing the consideration given against the book value of the consideration acquired. Assume that 100% stake in the XYZ co.s equity is to be paid in cash.
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board emaining Time: 1 hour, 12 minutes, 24 seconds. uestion Completion Status: OD.Does not affect total equity, but transfer amounts between the components of equity. QUESTION 4 What is the total amount of cash and other assets the corporation receives from its stockholders in exchange for its stock? O A. It always equal the stated value. O B. It always equal the par value. O C. It is referred to as paid-in capital. D. It is always below the stated value. QUESTION 5 Use the following company information to calculate net cash provided or used by investing activities: (1) Equipment with a book value of $131.250 and an original cost of $225,000 was sold at a loss of $12.750. (2) Paid $46,500 cash for a new truck. (3) Sold land costing $24,000 for $27.000 cash, realizing a $3,000 gain. LA Dchsend troseuncctock for SA5 750ench Click Save and Submit to save and submit. Click Save All Answers to save all answers. hp
14. How much is the correct balance of the Accumulated retained earnings unappropriated account?
The Statement of Financial Position of Syscoin Bhd as at 31 December are as follows: 2021 RM 3,520,000 900,000 1,960,000 900,000 1,140,000 860,000 720,000 10,000,000 3,000,000 800,000 600,000 2,000,000 640,000 400,000 340,000 600,000 720,000 900,000 10,000,000 Non-current assets at NBV Goodwill Investment in associate Inventories Receivables Short term investments Cash Ordinary shares Share premium Revaluation reserves Retained profits Non-controlling interest Loan stocks Deferred taxation Proposed dividends Taxation Payables Groups profit before taxation after charging / (crediting): Depreciation Goodwill impaired Interest expense Interest income 2020 Gain on sale of non-current assets Share of profit in associate Net profit before taxation RM 2,120,000 1,000,000 1,560,000 1,000,000 860,000 560,000 500,000 7,600,000 2,000,000 400,000 200,000 1,300,000 The statement of comprehensive income of Syscoin Bhd for the year ended 31 December 2021 is as follows: 300,000 800,000 400,000 400,000…
The following trial balance has been extracted from the books of Abraham as at 31st March 2023 UGX 000 UGX 000 Administrative expense 250 Distribution cost 295 Share capital (all ordinary shares of UGX 1 each 270 Share premium 80 Revaluation reserve 20 Dividend 27 Cash at bank and hand 3 Receivables 233 Interest paid 25 Dividend received 15 Interest received 1 Land and buildings at cost (land 380, building 100) 480 Land and building acc. Dep 30 Plant and machinery 400 Plant and machinery acc. Dep 170 Retained earnings account (at April 2022 235 Purchases 1260 Sales 2165 Inventory at 1 April 2022 140 Trade payables 27 Bank loan 100 Total 3113 3113 Additional Information Inventory at 31st March 2023 was valued at a cost UGX 95000. Include in this…
3. Vance Refrigeration repurchased 1,000 shares of their own common stock for $20 per share. They then resell 500 shares for $30 per share. How much should APIC be debited or credited for the resale? a. Credit for $10,000 b. Credit for 5,000 c. Debit for 5,000 d. APIC will not be affected by the resale.