H plc owns 80% of the the voting shares of S plc. S plc is a subsidiary of H plc. The most recent income statements of each company include the following entries: H S £ £ Interest receivable 111,000 76,000 Finance charges 220,000 342,000 Two years' previously H plc made a loan of 437,000 to S plc which is repayable in full in 3 years' time. The loan bears interest at 8% a year. What figure will be reported in the Consolidated Income Statement of H plc for 'Interest receivable'?
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- luxco acquires participation on Aprin 1, 2012 for 1000000. This investment is financed by (a) share premium for 100.000é (b) an interest-free shareholder loan for 250000€ and (c) bank loan bearing interest at 5% per annum for the balance. the interest on the bank mentioned above are payable on the last day of each civil quarter (March 31...). Any unpaid accrued interest bear also interest at 5% per annum starting from the day after their due date (from Aprin 1 for interest payable on March 31). Assuming that Luxco does not pay its interest on June 30, 2012, please detail the accounting entries in relation with the booking of interest as Jube 30, 0210 and September 30, 2012 Make the journal entries only for the interestluxco acquires participation on Aprin 1, 2012 for 1000000. This investment is financed by (a) share premium for 100.000é (b) an interest-free shareholder loan for 250000€ and (c) bank loan bearing interest at 5% per annum for the balance. make the journal entryPUP CAF Company, provided the following income and expenses for the current year:· Dividend income from investments- P9,200,000· Share of profit of associate- P500,000· Interest income on deposits- P700,000· Income from bank treasury bills- P100,000· Unrealized gain on derivative contracts- P400,000· Income from dealing in securities and derivatives held for trading- P600,000· Writedown of securities and derivatives held for trading- P150,000· Other income- P250,000· Finance cost- P300,000· Administrative staff costs- P3,800,000· Selling expenses- P1,200,000· Income tax expense- P1,700,000What is the total comprehensive income for the year?
- On 1 January 2020 Harleen Inc purchased 1,275 ordinary shares in Shresta Inc , paying £5,300 by cheque. At the time of purchase, Shresta Inc’s profit and loss account balance were £1,000 and share premium was £500. The following are the statement of financial positions of Harleen Inc and Shresta Inc: Statement of Financial Position as at 31 December 2020 Harleen Inc Shresta Inc Non-Current Assets £ £ £ £ Buildings 10 000 4000 Motor Vehicles 7000 900 Investment in Shresta Inc 5300 22300 4900 Current Assets Inventory 1200 800 Trade Receivables 1500 260 Bank 300 390 Cash 50 10 3050 1460 Current Liabilities Trade Payables 5600 800 (2550) 660 19750 5560 Non-Current Liabilities Loans 6000…Accounting Corelli Ltd acquired all the shares of Handel Ltd on 1 July 2016. During the year 1 July 2016 to 30 June 2017 the following transactions take place between Handel and Corelli: a) Handel has a $400 000 loan from Corelli Ltd, at an annual interest of 10% (the loan was taken on 1 July 2016). Accruals of Corelli Ltd include $15 000 loan interest due from %3D Handel Ltd. b) The parent charged a $9 000 management fee. All of this was paid by 30 June 2017. c) Dividends declared by Handel amount to $30 000 and Corelli, $90 000. All dividends were yet to be paid out. Required: Prepare journal entries required on consolidation to eliminate the intra-group transactions as of 30 June 2017, assuming a tax rate of 30%.1. On January 1, 2010, parent lends 70% owned subsidiary $5,000,000 at 6% annual interest for two years. Subsidiary pays the accrued interest at the end of each year. Answer the following: a. How much interest income is recorded on the Parent's books in 2010. b. How much interest expense is recorded on the subsidiary's books in 2010 2. Apple owns 80% of Pear. Apple had a bond payable outstanding on January 1, 2010 with a book value of $212,000. Pear purchases the bond in openmarket for $199,000. How much is the gain or loss on retirement of the bond.
- Assume the following independent cases:A. At the beginning of the year, a check was issued for P400,000 as payment for a piece of land, and the buyer assumed the liability for the unpaid taxes at the end of the year, P10,000 and those assessed for the current year at P9,000.B. A company issued 14,000 ordinary shares (P10 par) with a market value of P60 per share (based upon a recent sale of 100 shares) for the land. The land was recently appraised at P800,000 by independent and competent appraisers.C. A company rejected an offer to purchase the land for P8,000,000 cash two years ago. Instead, the company issued 100,000 ordinary shares for the land (market value of the ordinary share, P78 each based on several recent large transactions and normal weekly stock trading volume).D. A company purchased land by signing a note with the seller, requiring P100,000 down payment, payment of P120,000 one year from purchase, and P80,000 three years from purchase. The note is non-interest bearing,…Katipunan Company has financial liability (accounted under amortized cost) with face amount of P5,000,000 and a carrying amount of P4,800,000. In addition, there is an unpaid interest of P250,000, accrued. The creditor agreed to the settlement of the bonds payable in exchange for 50,000 shares of P50 par value. The shares have current market value of P4,500,000. How much should be recorded as additional share premium as a result of the extinguishment of the liability?Great Ltd owns all of the share capital of Barrier Ltd. The income tax rate is 30%. The following transactions took place during the periods ended 30 June 2020 or 30 June 2021. On 1 January 2020, Barrier Ltd lent Great Ltd the sum of $25 000. The loan is repayable in ten years and carries an annual interest charge of 4%. At 30 June 2021, both companies have recognized the interest for the year but no cash has been exchanged. In February 2021, Great Ltd sells inventories to Barrier Ltd for $11 000 in cash. These inventories had previously cost Great Ltd $8 000, and are on-sold externally on 2 April 2021. On 28 June 2021, Barrier Ltd declared a final dividend of $15 000. Shareholder approval is not required in relation to dividends. In March 2021, Great Ltd sold inventories for $15 000 to Zara Ltd, an external entity. These inventories were transferred from Barrier Ltd on 1 June 2020. The inventories had originally cost Barrier Ltd $4000, and were sold to Great Ltd for $11 000.…
- Sonnet Company began operations as a new subsidiary of Poem Company, a U.S.Corporation, on January 2, 2019, by issuing common stock for 180,000 foreigncurrency units (FCU). Sonnet immediately borrowed 35,000 FCU with a 10-year, 10%note, interest payable annually on January 1. On the same date, Sonnet bought abuilding for 200,000 FCU. The building was to be depreciated for 20 years on astraight-line basis with a residual value of 40,000 FCU.During the year, the building was rented for 9,000 FCU per month and all rentwas collected monthly.On May 1 a repair on the building of 15,000 FCU was completed and paid for. Landfor a parking lot was acquired for 30,000 FCU in cash on June1.A dividend of 20,000 FCU was declared and paid on December 1. (The dividendwas paid to Poem which owns 100% of Sonnet.)Exchange rates for the year were as follows: January 2, 2019 1 FCU = $0.30May 1, 2019 1 FCU = $0.39June 1, 2019 1 FCU = $0.38November 1, 2019 1 FCU = $0.41December 1, 2019 1 FCU = $0.40December…14. A company has the following information during the year? Total consideration from share issuances amounted to P3,000,000. A land and building were acquired through a lump sum payment of P450,000. A mortgage amounting to P150,000 was assumed on the land and building. Total payments of P70,000 were made during the year on the mortgage assumed on the land and building, The payments are inclusive of interest amounting to P20,000. Additional capital of P220,000 was obtained through bank loans. None of the bank loans were paid during the year. Half of the bank loans required a secondary mortgage on the land and building. There is no accrued interest as of year-end. Dividends declared during the year but remained unpaid amounted to P63,000. No other transactions during the year affected liabilities. Retained earnings as of December 31, 20x1 is P130,000 How much is the profit for the year? 15. Using the information on the preceding number, how much is the total assets as of the end of the…JJJ Co. was incorporated on January 1, 20x1. The following were the transactions during the year: Total consideration from share issuances amounted to P2,000,000. · A land and building were acquired through a lump sum payment of P400,000. A mortgage amounting to P100,000 was assumed on the land and building. Total payments of P80,000 were made during the year on the %. mortgage assumed on the land and building, The payments are inclusive of interest amounting to P10,000. · Additional capital of P200,000 was obtained through bank loans. None of the bank loans were paid during the year. Half of the bank loans required a secondary mortgage on the land and building. There is no accrued interest as of year-end. Dividends declared during the year but remained unpaid amounted to P60,000. • No other transactions during the year affected liabilities. • Retained earnings as of December 31, 20x1 is P120,000. How much is the profit for the year?