Convex Ltd is a parent company to Concave Ltd and decides to sell 30% of their shares to another company who wants to support its operations. How would this transaction affect the preparation of Convex Ltd financial statement for the next accounting period?
Q: Amekom Plc is a public company that would like to acquire (100% of) a suitable private company. It…
A: Part (a) Equivalent ratios from the financial statements of Apim Plc workings in GHS’000) Return on…
Q: 9. ABC paid finder's fees of P80,000, legal fees of P26,000, audit fees related to stock issuance of…
A: Formula: Total expenses = Finder's fees + Legal fees + Audit fees + Stock issuance + Stock…
Q: When a company retires its own common shares, the company must a.decrease the common share account…
A: Retirement of the company's own shares means the cancelling of original issued shares.
Q: On January 1, 2018, Dermot Company purchased 12% of the voting common stock of Horne Corp. On…
A: Accounting for investments involves recording and reporting the value and income of an entity's…
Q: 1 October 2020, OXIOM purchased 200,000 equity share in Eban, a key supplier. Eban’s shares are…
A: Equity Share - An equity share, sometimes referred to as an ordinary share, is a form of fractional…
Q: The following comment appeared in the notes of Colorado Corporation's annual report: “Such…
A: Cash dividend: The amount of cash provided by a company out of its distributable profits as a…
Q: On 1 July 2020 Harry Ltd purchased 70 per cent of the issued share capital of Wills Ltd and has…
A: So on 1st July 2020, Harry Ltd Purchases 70% of Issued share capital of Wills Ltd Net Assets on that…
Q: Herbst Enterprises purchased equity securities in Year 1 and classified them as available-for-sale.…
A: Herbst Enterprises does NOT need to report the realized gain as dividend revenue or restate the Year…
Q: Pronghorn Ltd. is a Canadian publicly-traded business with a December 31 fiscal year end. In order…
A: Journal Entries are posting of the accounting transactions made during the accounting period using…
Q: Fast Ltd. is a public company that prepares its consolidated financial statements in accordance with…
A: The objective of the question is to determine the reporting amounts for research and development and…
Q: When a company retires its own common shares, the company must a. decrease the common share…
A: The objective of the question is to understand the accounting treatment when a company retires its…
Q: Which of the following transactions relating to shares in Pinder Ltd takes place in what we referred…
A: The financial market is defined as the place where financial assets and securities are bought and…
Q: MoFin LTD On 10 November 2020, GoMo Ltd purchased 80% (800 shares) of the issued share capital in a…
A: As per the given information: GoMo Ltd purchased 80% (800 shares) of the issued share. GoMo Ltd paid…
Q: Which statement is incorrect regarding equity-settled share-based payment transactions? A. the…
A: Equity settled share payments are those transactions in which own equity shares or stock options are…
Q: Sharpie is a listed firm that operates in the UK and prepares its accounts using the International…
A: Key Points: 1.If an equity investment is not kept for trade, a corporation can make an irreversible…
Q: d) Yompab Ltd is a manufacturing company that prepares its financial statements for the year ended…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: d. Yompab Ltd is a listed manufacturing company which prepares its financial statements for the year…
A: Please find the answers to the above questions below:
Q: Spoke Ltd is a wholly owned subsidiary of Wheel Ltd. The transactions for the period ending 30 June…
A: Journal entries refer to the process of systematically documenting the financial transactions of a…
Q: On January 1, 2010, Cale Corp. paid $1,020,000 to acquire Kaltop Co. Kaltop maintained separate…
A: Net income is the amount which is earned by the entity after deducting the expenses from the…
Q: Yompab Ltd is a listed manufacturing company which prepares its financial statements for the year…
A: As per IAS 10, Events after reporting date means the event is to occur after the balance date but if…
Q: Yamikani Limited owns 90% of the shares in Lemekani Limited. Yamikani originally acquired 25% of…
A: Investment in Associates and Joint venture and Subsidiary Equity Accounting method - This method…
Q: When a company requests a further payment from shareholders of the unpaid amounts on their shares,…
A: Issue of Shares: Company raise capital by issuing shares to investors in return for capital. This…
Q: Sheldon Ltd required additional equity funding and decided to issue a renounceable rights offer. To…
A: Company means the form of business where management is separately from owner and have perpetual…
Q: At the beginning of 2016, Pioneer Products’ ownership interest in the common stock of LLB Co.…
A:
Q: How do I find Leases, Share-based compensation, Dilutive securities, and Revenue recognition for…
A: To find information on leases, share-based compensation, dilutive securities, and revenue…
Q: On January 1, 2020, Nun Company had ordinary and preference shares outstanding. The incorporators or…
A: Retained earning is the amount of profit accumulated over a period of time. The ending retained…
Q: 31. The comp
A: FV-NI i.e Fair value through net income, under this approach any changes in the fair value of…
Q: Berkshire Hathaway, the investment holding company of Warren Buffett, reports its “less than 20%…
A: Equity investment: Equity investments are the stock instruments which claim ownership in the…
Q: perating income. Long-term capital gain. Cost of goods sold.
A: The shareholder begins with their commencing capital contribution to the S corporation or the…
Q: This comment appeared in the annual report of Mac-Cloud Inc.: “The Company could pay cash or…
A: Definition:
Q: Calculate the group earnings per share that could be expected for the year ending 31 March 2019 in…
A:
Q: A. On 1 July 2020, Alba Bbd. acquired 30 per cent of the ordinary shares that carry voting rights at…
A: Investment in Equity Method Investment in equity method which are calculated on cost basis and not…
Q: On 1 January 2020 Harleen Inc purchased 1,275 ordinary shares in Shresta Inc , paying £5,300 by…
A: Step 1 Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for…
Q: You are auditing a company that owns 22% of the voting common stock of another corporation and uses…
A: Equity method: Equity method refers to a type of accounting used for investment between companies.…
Q: Required: How should Parent report the above information in its year-end income statement and…
A: Step 1 In the business combination concept, when an entity acquires more than 50% of significant…
Q: 280 000 Accumulated Depreciation (60 000) Account Receivables 25 200 25 200 Cash 15…
A: Acquisition refers to the concept under which a company buys another business in the market in order…
Step by step
Solved in 2 steps
- Gold Corporation, a calendar year C corporation, was formed several years ago and has been profitable until the current year. In the current year, Gold incurs a net operating loss. Identify the issues that Gold Corporation should consider regarding its NOL.Chalmers Ltd is a parent company that prepares consolidated financial statements. On 1 July 2019 Chalmers Ltd acquired 30% of the shares in Palmer Ltd at a cost of $210,000. The directors of Chalmers Ltd believe that they exert 'significant influence' over Palmer Ltd. At that time the equity in Palmer Ltd consisted of: Share capital $400,000; Retained profits $150,000 This equity at the acquisition date reflected the fair value of net assets in Palmer Ltd with the exception of some depreciable non-current assets with a fair value of $120,000 (before tax) greater than carrying amount. These depreciable assets are expected to have a further 5-year life. The results of Palmer Ltd for the year ended 30 June 2021 is as follows: 30 June 2020 30 June 2021 S S Profit before tax 150,000 200,000 Income tax (20,000) (30,000) 170,000 130,000 Profit after tax (12,000) (15,000) Dividends paid (10,000) (20,000) Transfer to General Reserve 108,000 135,000 Retained earnings Additional information: At…This comment appeared in the annual report of MacCloud Inc.: “The Company could pay cash or property dividends on the Class A common stock without paying cash or property dividends on the Class B common stock. But if the Company pays any cash or property dividends on the Class B common stock, it would be required to pay at least the same dividend on the Class A common stock.” How is a property dividend accounted for in the financial records?
- Syd Ltd acquired all the issued shares (Cum-div.) of Mel Ltd on 1 July 2021. At this date the financial position of Matt Ltd was as follows: Carrying Amount Fair Value Plant $300 000 280 000 Accumulated Depreciation (60 000) Account Receivables 25 200 25 200 Cash 15 000 15 000 Inventories 15 600 20 600 295 800 Share Capital 220 000 General Reserve 23 400 Retained Earnings 24 200 Provisions of Employee benefits 19 200 19 200 Dividend Payable 9 000 9 000 295 800 Additional information: The assets of Mel Ltd did not include a patent that was valued by Robert Ltd at $12 000. Its useful life was considered to be 5 years, with benefits being received equally over that period. The plant was considered to have a further 10-year life and is depreciated on a straight-line basis. All the pre-acquisition inventories were not sold by…Syd Ltd acquired all the issued shares (Cum-div.) of Mel Ltd on 1 July 2021. At this date the financial position of Matt Ltd was as follows: Carrying Amount Fair Value Plant $300 000 280 000 Accumulated Depreciation (60 000) Account Receivables 25 200 25 200 Cash 15 000 15 000 Inventories 15 600 20 600 295 800 Share Capital 220 000 General Reserve 23 400 Retained Earnings 24 200 Provisions of Employee benefits 19 200 19 200 Dividend Payable 9 000 9 000 295 800 Additional information: The assets of Mel Ltd did not include a patent that was valued by Robert Ltd at $12 000. Its useful life was considered to be5 years, with benefits being received equally over that period. The plant was considered to have a further 10-year life and is…On 1 July 2020, Lada Ltd (LL) acquired a 20 per cent interest in Hupmobile Ltd (HL) for a cash consideration of $40,000. Despite its small shareholding in HL, LL is considered to have significant influence over HL, since LL is able to appoint a director to HL’s Board of Directors, and HL is a major customer of LL. LL also provides management personnel to HL, and the two companies share technical information. On the date of the acquisition, the assets of HL were reported at fair value. The share capital and reserves of HL at the date of acquisition were: Share capital 50,000 Retained earnings 140,000 Total shareholders’ equity $190,000 Additional information For the year ending 30 June 2021, HL recorded an after-tax profit of $100,000, from which it paid a dividend of $50,000. For the year ending 30 June 2022, HL recorded an after-tax profit of $80,000, from which it paid a dividend of $60,000. On 30 June 2022, HL revalued its Land upwards by $10,000. Before this revaluation, the Land…
- Marcoola Ltd is a public company listed on the Australian Securities Exchange (ASX). It complies with the requirements of AASB 9 ‘Financial Instruments’, AASB 132 ‘Financial Instruments: Disclosure and Presentation and AASB 7 ‘Financial Instruments: Disclosures’. Data relating to Marcoola Ltd’s financial instruments have been extracted from its financial statements and are provided below. On 1 April 2021, Marcoola Ltd sold 12 All Ordinaries Share Price Index (SPI) futures contracts for speculative purposes. Marcoola Ltd paid an initial cash deposit of $75,000. The futures broker allowed a $1,800 decrease in value of the SPI futures contracts before making margin calls. Marcoola Ltd has a 31 May reporting date. On 1 June 2021, the SPI futures contracts were closed out. The following market price data are available. 2021: 1 April 31 May 1 June Market value of shares $435,000 $439,680 $417,000 2021 SPI futures price 1,322 1,330 1,265 Market price(SPI futures price x 12 x $25)…Syd Ltd acquired all the issued shares (Cum-div.) of Mel Ltd on 1 July 2021. At this date the financial position of Matt Ltd was as follows: Carrying Amount Fair Value Plant $300 000 280 000 Accumulated Depreciation (60 000) Account Receivables 25 200 25 200 Cash 15 000 15 000 Inventories 15 600 20 600 295 800 Share Capital 220 000 General Reserve 23 400 Retained Earnings 24 200 Provisions of Employee benefits 19 200 19 200 Dividend Payable 9 000 9 000 295 800 Additional information: The assets of Mel Ltd did not include a patent that was valued by Robert Ltd at $12 000. Its useful life was considered to be5 years, with benefits being received equally over that period. The plant was considered to have a further 10-year life and is…Landscape Bhd is a listed company on Bursa Malaysia. On 1 January 2019, the entity granted 50 share options to each of its 100 employees. These will vest if the employees still work for the entity on 31 December 2020 and if the share price on that date is more than RM5.On 1 January 2020, the fair value of the options was RM1. The share price on 31 December 2020 was RM3 and it was considered unlikely that the share price would rise to RM5 by 31 December 2021. Ten employees left during the year ended 31 December 2020 and a further ten are expected to leave in the following year.The directors were proposing not to recognised the share options in the financial statement because the current year of share price was RM3 and it’s unlikely to reach at RM5 by 31 December 2021, therefore the vesting conditions would not be met. a. Propose recommendation to Landscape regarding to the share options, in accordance to IFRS 2.
- On 1 January 2021, Black Ltd purchased all the shares in Beard Ltd. On 3 March 2021 Beard Ltddeclared and paid a dividend of $10,000 from pre-acquisition retained earnings. The requiredconsolidation entry on 30 June 2021 will result in: Group of answer choices An increase in retained earnings A decrease in the investment account None of the Answers A decrease in retained earningsCheyenne Ltd. is a Canadian publicly-traded business with a December 31 fiscal year end. In order to get a better return on some of its excess cash, Cheyenne purchased 130 common shares of AFS Corporation on July 1, 2023 at a price of $3 per share. Due to the nature of the investment, Cheyenne's management is accounting for the equity investment using the fair-value through other comprehensive income (FV-OCI) without recycling to net income. On August 1, 2023, AFS declared dividends of $2/share, and paid those dividends on August 20, 2023. On December 31, 2023, shares in AFS were trading at $5 per share. On September 15, 2024, Cheyenne sold the shares in AFS for $6 per share. Prepare the journal entries required to record the above transactions on the books of Cheyenne Ltd. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit…On January 2, 2010, Megan Company declared and distributed its only investment in equity securities as dividend. At the time of the declaration, the securities has a carrying value of P500,000 and a related unrealized loss of P100,000. By what amount should Megan Company charge its accumulated profit as a result of the property dividend declaration? Show solutions