The equity section of East Ltd's on 1 April 2015 was extracted as follows: Ordinary shares $ 10,000 Revaluation Reserves Retained Loss 5,000 (260) On 1 April 2015, HK Ltd purchased 25% of the ordinary shares of East Ltd at the cost of $4,080. In January 2016, HK Ltd transferred one of its senior staff to take up the position of the Managing Director of East Ltd. After this personnel appointment, HK Ltd has been substantially involved in new product innovation with East Ltd by the provision of technical information. In February 2016, East Ltd sold inventory to HK Ltd for $3,000 at a profit of $600 to East Ltd. One third of this inventory remained in HK Ltd's warehouse at the year-end. On 31 March 2016, East Ltd's ending inventory included goods purchased from HK Ltd at a loss of $80 to HK Ltd. These goods had good quality, so they were popular and fully sold out shortly in April. In March 2016, East Ltd paid dividends of $400 to all eligible ordinary shareholders out of the profit earned in the financial year 2015/16. HK Ltd accounted for the receipt as investment income. After taking into account the dividends paid in the current financial year, East Ltd's retained earnings has a credit balance of $340 on 31 March 2016. The recoverable amount of East Ltd and the revaluation reserves' balance on 31 March 2016 were $12,000 and $4,000, respectively. Required: c) Prepare all journals needed for the consolidated financial statements of HK Ltd at 31 March 2016, assuming East Ltd is an associate of HK Ltd. d) Based on the answer from c) above, provide notes of disclosure for the investment in East Ltd on HK Ltd's consolidated financial statements for the year ended 31 March 2016.

On 30 June 2017, P Co pays £50,000 cash to acquire 70% of the ordinary shares of S Co. The draft statements of financial position of these two companies as at 30 June 2018 are below: Assets P Co £ S Co £         Property, plant and equipment 400,000 55,000   Investment in S 50,000     Total Non-current Assets 450,000 55,000   Receivables 50,000 5,000   Inventories 50,000 5,000   Bank and Cash 250,000 15,000   Current Assets 350,000 25,000   Total Assets 800,000 80,000   Equity       Ordinary Share Capital (£1 shares) 500,000 50,000   Retained Earnings 200,000 10,000   Liabilities 700,000 60,000         Trade Payables 100,000 20,000   Total Equity and Liabilities 800,000 80,000     The following information is also available: The fair value of the property, plant and equipment of S Co on 30 June 2018is £60,000 as…

On July 1, 2015, Cleopatra Corporation acquired 25% of the shares of Marcus, Inc. for P1,000,000. At that date, the equity of Marcus was P4,000,000, with all the identifiable assets and liabilities being measured at amounts equal to fair value. The table below shows the profits and losses made by Marcus during 2015 to 2019: Year Profit (Loss) 2015 200,000 2016 2,000,000 2017 2,500,000 2018 160,000 2019 300,000 How much will the Investment in Associate account be debited/credited in 2018? P1,035,000 Cr. P1,060,000 Cr. P40,000 Dr. No entry How much will the Investment in Associate account be debited/credited in 2019? P960,000 Cr. No Entry P15,000 Dr. P75,000 Dr.

Pye Co has owned 75 per cent of the 100 000 shares of S Co since the incorporation of S Co. During the year to 31 December 2012, S Co sold goods costing Shs.16 000 to P Co at a price of Shs.20 000 and these goods were still unsold by P Co at the end of the year. Draft statements of financial position of each company at 31 December 2012 were as follows:

Andoy Corp. was organized on January 1, 2017 with authorized capital of 100,000 ordinary shares, P20 par value. During 2014, Andoy Co. had the following transactions affecting the shareholders’ equity. Jan 10 - Issued 25,000 shares at P22 per share. Mar 25 - Issued 1,000 shares for legal service when the fair value was P24 per share. Sep 30 - Issued 5,000 shares for a piece of equipment when the value was P26 per share. 1.What amount should be reported as ordinary share premium? 2.How much is the balance of the ordinary share capital account as of September 30?

The stockholder’s equity accounts of Pen Corporation and Sin Corporation at December 31, 2017, were as follows (in thousands):      Pen  Corporation  Sin  Corporation  Capital stock  $1,200  $ 500  Retained earnings      500    100  Total  $1,700  $ 600    On January 1, 2018, Pen Corporation acquired an 80 percent interest in Sin Corporation for $580,000. The excess fair value was due to Sin Corporation’s equipment being undervalued by $50,000 and unrecorded patents. The undervalued equipment had a 5-year remaining useful life when Pen acquired its interest. Patents are amortized over 10 years.    The income and dividends of Pen and Sin are as follows:      Pen  Sin  2018  2019  2018  2019  Net income  $ 340  $ 350  $120  $150  Dividends  240  250  80  90  [فاصل التفاف النص]  REQUIRED:  Assume that Pen Corporation uses the equity method of accounting for its investment in Sin.  Determine consolidated net…

On March 31, 2018, Chow Brothers, Inc., bought 10% of KT Manufacturing’s capital stock for $50 million. KT’snet income for the year ended December 31, 2018, was $80 million. The fair value of the shares held by Chow was$35 million at December 31, 2018. KT did not declare or pay a dividend during 2018.Required:1. Prepare all appropriate journal entries related to the investment during 2018.2. Assume that Chow sold the stock on January 20, 2019 for $30 million. Prepare the journal entry Sanbornwould use to record the sale.

On December 31, 2015, Raja Corporation's balance sheet reported the following: The following transactions occurred during 2016: (a) Raja Corporation purchased 1,000 shares at $30 per share to be held as treasury stock. (b) Sold 600 shares of treasury stock for $37 per share (c) Sold the remaining shares of treasury stock at $28 per share. Instructions Prepare the necessary journal entries for Raja Corporation to record the above transactions. Raja Corporation uses the cost method of accounting for treasury stock. Account Debit Credit (a) (b) (c)

On December 31, 2016, Akron, Inc. purchased 5 Percent of Zip’s Company's common shares on the open market in exchange for $16,000. On December 31, 2017, Akron, Inc., acquires an additional 25 percent of Zip Company's outstanding common stock for $95,000. During the next two years, the following information is available for Zip Company:     Income Dividends Declared Common StockFair Value (12/31) 2016     $320,000 2017 $75,000 $7,000 380,000 2018 88,000 15,000 480,000     At December 31, 2017, Zip reports a net book value of $290,000. Akron attributed any excess of its 30 percent share of Zip's fair over book value to its share of Zip's franchise agreements. The franchise agreements had a remaining life of 10 years at December 31, 2017.   Assume Akron applies the equity method to its Investment in Zip account: What amount of equity income should Akron report for 2018? On Akron's December 31, 2018, balance sheet, what amount is reported for the Investment in Zip…

On July 1, 2016, Miller Company purchased 25% of Wall Company’s outstanding ordinary shares and no goodwill resulted from the purchase. Miller appropriately carried this investment at equity and the balance in Miller’s investment account was ₱1,900,000 on December 31, 2016. Wall Company reported net income of ₱1,200,000 for the year ended December 1, 2016, and paid dividend totaling ₱480,000 on December 31, 2016. How much did Miller pay for the 25% interest in Wall? a. 1,720,000b. 2,020,000c. 1,870,000d. 2,170,000 What is the solution for option C?