Question

Codger Limited acquired a 40% investment in Lodger Limited for $50 000. Lodger declared and paid...

Codger Limited acquired a 40% investment in Lodger Limited for $50 000. Lodger declared and paid a dividend of $10 000. Codger Limited does not prepare consolidated financial statements. The appropriate entry for the investor to record this dividend is:

a.

DR Cash $4 000

CR Investment in associate $4 000
b.

DR Dividends payable $4 000

CR Cash $4 000
c.

DR Cash $4 000

CR Dividend revenue $4 000
d.

DR Investment in associate $4 000

CR Dividend revenue $4 000.

The following are regarded as factors indicating the existence of significant influence over another entity:

I

II

III

IV

representation on the board of directors       

Yes

Yes

Yes

Yes

participation in decisions about dividends

No

Yes

Yes

Yes

interchange of managerial personnel

No

No

No

Yes

ability to control the investee’s operating policies

No

Yes

No

No
a.

I.
b.

II.
c.

III.
d.

IV.

According to AASB 107/IAS 7 Statement of Cash Flows, which of the following items does NOT fall within the definition of cash?

a.

Bank notes and coins.
b.

Non-bank bills that are readily convertible to cash.
c.

Deposits on the short-term money market with a term of less than 3 months.
d.

Accounts receivable.

During the financial year, Cresswell Limited had a cost of sales amounting to $260 000. Opening and ending balances of related accounts were:

              Opening balance                                    Closing balance

Inventories                                          $46 000                                                $55 000

Accounts Payable                   $18 000                                               $26 000

A discount of $2000 for prompt payment was received. The amount of cash paid for goods purchased during the year was:

a.

$259 000.
b.

$263 000.
c.

$275 000.
d.

$279 000.
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer 1)

a. DR Cash $4000

CR Investment in associate $4000

The investment in associate is reduced when the investor receives a distribution from the associate.

Answer 2)

d. IV

Ability to control the investee’s operating policies is not regarded as a factor indicatingt existence of significant influence over another entity.

Answer 3)

d. Accounts Receivable

According to AASB 107/IAS 7 Statement of Cash Flows, Accounts Receivable do NOT fall within the definition of cash.

Answer 4)

a. $259000

The amount of cash paid for goods purchased during the year = $260000 - $46000 + $55000 + $18000 - $26000 - $2000(discount) = $259000

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1] Simon sold goods to Lawrence for $2200 including GST. Lawrence paid his account within the...
1] Simon sold goods to Lawrence for $2200 including GST. Lawrence paid his account within the discount period and received a settlement discount of 2%. Using the gross method, the correct entry to be recorded in Simon’s books for the payment from Lawrence is: a] DR Bank $2156; DR Discount allowed $44; CR Accounts receivable $2200. b] DR Bank $2160; DR Discount allowed $40; CR Accounts receivable $2200. DR Bank $2156, c] DR Discount allowed $44; DR GST payable $4;...
information for the year ending 30 June 2020 is as follows:- Sales R800 000 Profit before...
information for the year ending 30 June 2020 is as follows:- Sales R800 000 Profit before tax R186 000 Closing accounts payable R45 000 Opening accounts payable R63 000 Opening inventory R92 000 Closing inventory R88 000 Dividends received R24 000 Finance charges R8 400 Expense paid in advance 2020 R21 000 Calculate the cash payments to employees and suppliers for the year ending 30 June 2020? Select one: a. R636 600 b. R644 600 c. R628 600 d. None...
Question 5 (1 point) Passive investments (<20% ownership) are generally shown at their fair market value...
Question 5 (1 point) Passive investments (<20% ownership) are generally shown at their fair market value on the Balance Sheet. A: True B: False Question 6 (1 point) On 1/1/20, Tyler Trading Corp. purchases 1,000 shares of Elly Energy common stock for $25 per share. Elly Energy has 20,000,000 total shares of common stock outstanding. On 12/31/20, the Elly shares are trading at $30 per share. Tyler Trading will record the following journal entry to reflect the 2020 unrealized gain/loss:...
Leisure Limited just paid dividend of $50 per share. The dividend is expected to grow at...
Leisure Limited just paid dividend of $50 per share. The dividend is expected to grow at a constant rate of 4% a year. The required rate of return on Leisure Limited's common stock is 9% a year. Required: (i) What is Leisure Limited's common stock current value? (ii) What is Leisure Limited's common stock expected price two years from now? (b) Leisure Limited issued perpetual preferred stock with 7.5% annual dividend. The stock price is HK$115 and its par value...
1) Which invoice layout in MYOB is most appropriate when recording inventory transactions? Select one: a....
1) Which invoice layout in MYOB is most appropriate when recording inventory transactions? Select one: a. Professional b. Item c. Service d. Miscellaneous 2) The Undeposited Funds Account in MYOB: Select one: a. All of these options b. Is a temporary clearing account recording each individual cash receipt c. Is cleared when the amounts receipted are actually banked d. Is used to assist with the reconciliation of the bank account 3)When customer records are set up in MYOB to track...
Assets Cash                                        &nb
Assets Cash                                                                                           $500,000 Accounts Receivable                                                                  700,000                              Inventory                                                                                     300,000 Property, Plant & Equipment                          900,000 Accumulated Depreciation                          (100,000)              800,000 Total Assets                                                                            $2,300,000 Liabilities & Equity Accounts Payable                                                                      $300,000 Notes Payable                                                                           1,000,000 Common Stock                                                                            500,000 Retained Earnings                                                                       500,000 Total Liabilities & Equity                                                      $2,300,000 Journal Entries for January 2013 Transaction 1: Services Provided for Cash Description: Receives $155,000 cash from customers for programming services it has provided. Journal Entry:                                                                                                          Dr.                       ...
1. Under the perpetual inventory system, which of the following accounts would not be used? Select...
1. Under the perpetual inventory system, which of the following accounts would not be used? Select one: a. Sales b. Accounts Payable c. Cost of Goods Sold d. Purchases e. Inventory 2. Jones Merchandise uses a perpetual inventory system. It is a publicly traded company. On February 19 it sold $8,000 of motor parts to Vivak Candles on account. Jones statistics indicate 5% of its sales will result in returns. Jones's cost of inventory on motor parts is 50% of...
Account# 111 - Cash Date Description Debits Credits Balance   Beginning Balance $0.00 CR 9/01/2015   CR 1...
Account# 111 - Cash Date Description Debits Credits Balance   Beginning Balance $0.00 CR 9/01/2015   CR 1 owner's investment $21,000.00 $21,000.00 DR 9/02/2015   Race Car Purchase $13,500.00 $7,500.00 DR 9/03/2015   Track Rent $4,185.00 $3,315.00 DR 9/04/2015   Newpaper Advertising $251.19 $3,063.81 DR 9/06/2015   Cash Collected $1,200.00 $4,263.81 DR 9/07/2015   Payment on Sep. 6 $450.00 $3,813.81 DR 9/07/2015   Service Provided $2,000.00 $5,813.81 DR 9/09/2015   Sept. Advertising $325.68 $5,488.13 DR 9/11/2015   Payment on Sep. 3 $1,100.00 $4,388.13 DR 9/11/2015   (AR Collection) $400.00 $4,788.13 DR...
On January 2, Cohan Company acquired 40% of the outstanding stock of Sanger Company for $677,000....
On January 2, Cohan Company acquired 40% of the outstanding stock of Sanger Company for $677,000. For the year ended December 31, Sanger Company earned income of $149,000 and paid dividends of $27,500. Prepare the entries for Cohan Company for the purchase of the stock, the share of Sanger income, and the dividends received from Sanger Company. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS Cohan Company General Ledger ASSETS 110 Cash 111...
Exam 2 Softbyte Inc. Balance Sheet December 31, 2012 Assets Cash $500,000 Accounts Receivable 700,000 Inventory...
Exam 2 Softbyte Inc. Balance Sheet December 31, 2012 Assets Cash $500,000 Accounts Receivable 700,000 Inventory 300,000 Property, Plant & Equipment 900,000 Accumulated Depreciation (100,000) Total Assets $2,300,000 Liabilities & Equity Accounts Payable $300,000 Notes Payable 1,000,000 Common Stock 500,000 Retained Earnings 500,000 Total Liabilities & Equity $2,300,000 Instructions: Open the balances in the T-accounts (general ledger). Post the journal entries to the T-accounts (general ledger). Prepare an income statement, statement of retained earnings, balance sheet, and statement of cash...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT