H plc owns 70% 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 plc S plc £ £ Interest receivable 317,000 206,000 Finance charges 145,000 230,000 Two years' previously H plc made a loan of 765,000 to S plc which is repayable in full in 4 years' time. The loan bears interest at 6% a year. What figure will be reported in the Consolidated Income Statement of H plc for 'Finance charges'?
Q: Golden Inc. produces men's ties. The following budgeted and actual amounts are for 2018: Cost Budget…
A: given Cost Budget at 5,000 Units Actual…
Q: In 2014,Craig and Kathy Koehler owned a small business which was held as a proprietorship in Kathy's…
A: Tax liability is an amount levied on the taxpayer's income on the basis of applicable slab rates.…
Q: Which of the following statements about forms of variable pay are true? Group of answer choices A…
A: Variable pay refers to the sales remuneration portion which is dependent through job performance. It…
Q: Oxford Co. has a materials standard of 21 pounds per unit of output. Each pound has a standard price…
A: Direct material quantity variance is the one that signifies the variation between the estimated…
Q: [The following information applies to the questions displayed below.] In 2010 Casey made a taxable…
A: Currently, no tax is required to be paid by the gift receiver but gift tax is paid by the donor. The…
Q: Your Division makes a part that can either be sold to outside customers or transferred internally to…
A: As per the general transfer pricing rule, in the case of sufficient capacity available, the minimum…
Q: Pop Ltd and Bubble Ltd are small family-owned companies engaged in sustainably farmed vegetables.…
A:
Q: The management of Your Corporation is considering dropping a product. Data from the company's…
A: Increase (decrease) in overall net operating income if product is dropped = Savings in avoidable…
Q: ayed below.J Tyrell Company entered into the following transactions involving short-term…
A: ANSWER Journal entries for all the preceding transactions and events
Q: When closing income statement accounts having debit balances, which of the following accounts will…
A: In Income Statement expenses has debit balance and Revenue has credit balance. The detailed…
Q: Variance Analysis Problem Avatar, Inc. has prepared the following standard cost sheet for one unit…
A: Variances signifies the variation between the budgeted or estimated costs and the actual costs.
Q: Cafe X purchased a new espresso maker for $3,000 at the beginning of the month. If equipment is…
A: Depreciation Expenses: Depreciation expenditure is the amount that a company's assets are…
Q: Elodie is paid her commissions together with her bi-weekly salary of $1,000.00. This pay period her…
A: Calculation of contributionsTherefore, in 2022, the contribution rate is 12.3% of an employee's…
Q: Natural Desserts has 2,500 gallons of paint in WIP inventory, with all materials already added. The…
A: Introduction:- Equivalent units are the units in production multiplied by the percentage of units…
Q: Identify the better performer between Best Buy and Dollar General. Calculate how much inventory the…
A: We are given some calculations regarding two companies - Best Buy and dollar General. Based on the…
Q: Money market deposit accounts (MMDAS) O a. have floating maturity dates. O b. are federally insured.…
A: 1. a. have floating maturity dates. 2 d. allow check writing privileges above a stipulated minimum…
Q: anger of failing. Why? Is the sky falling? What might be done to correct the situation? Use some of…
A: The money that the taxes is not the same money when receive later in life. Instead, Social Security…
Q: Which of the fo
A: The portion of sales remuneration dependent by job performance is known as variable pay. Variable…
Q: Company has bonds outstanding with a par value of $140,000. The unamortized premium on these bonds…
A: gain or (loss) on this retirement = Par Value - call price + unamortized premium
Q: Ordinary share capital, P50 par, 500,000 shares Preference share capital, P100 par, 100,000 shares…
A: Unpaid for 2 Year + Current year 8000000*12%*2 + 8000000*12% = 2880000
Q: Pizza Inc. reported the following balances: December 31 Inventory 5,200,000 Accounts payable…
A: Cost of goods sold: Cost of goods sold is the direct value of manufacturing the goods which is being…
Q: EZ-Tax is a tax accounting practice with partners and staff members. Each billable hour of partner…
A: Since you have posted a question with multiple sub-parts, we will do the first three sub-parts for…
Q: mark is planning to purchase an Australian Treasury bond with a coupon rate (j2) of 1.04% and face…
A: Treasury bonds are government debt securities issued by the government. These bonds are fixed-rate…
Q: : As the banks and insurance companies in Oman are listed public companies. They are regulated by…
A: The International Financial Reporting Guidelines (IFRS) are a set of standards issued by the…
Q: Jaez Corporation is in the process of going through a reorganization. As of December 31, 2020, the…
A:
Q: 18:44 2 d t 68 < 22-22-ned Prepare a flexible budgeted income statement for 47,000 units u si ng the…
A: Flexible budget is a type of budget which can be changed as per the activity level. The variable…
Q: Ivanhoe Manufacturing Co.s static budget at 13,500 units of production includes $87,750 for direct…
A: Direct material cost per unit = $20250/13500 =$1.50 per unit
Q: When closing income statement accounts having credit balances, which of the following accounts will…
A: Income statement is one of the financial statements that indicates the profit earned or loss…
Q: b. If the net operating income was PhP2,000,000, how much was the beginning finished good inventory?
A: Finished goods inventory refers to all those inventories of a company which are available for sale…
Q: Choose the correct answer. How to build customer loyalty? Select one: a. Give at least 30% discount…
A: Solution : - b. Organize loyalty program and reward returned customers with it.
Q: e following totals for the month of June were taken from the payroll register of Arcon Company:…
A: These are the accounting transactions that are having a monetary impact on the financial statement…
Q: Your Division makes a part that can either be sold to outside customers or transferred internally to…
A: As per the general transfer pricing rule, in the case of sufficient capacity available, the minimum…
Q: Javvi land s a amall country Sectos microchips and computis. This with anly tiuo yar the total…
A: GDP of Jarvilland from Computer sector: As per the Value-added Approach = Gross value of output -…
Q: Purvis Manufacturing, which produces a single product, has prepared the following standard cost…
A: The variance is the difference between standard data of production and actual costs incurred for…
Q: A country’s current account position moves from a surplus to a deficit. What will be the result?…
A: Current Account Current Account means recording a nation’s transactions with the rest of the world.…
Q: What is the production budgeted for the second quarter? Company policy is to have a finished goods…
A: Production budget shows the number of units to be produced by the company in the given period. It is…
Q: Question 26 Residents of which states are most active in seeking to remove the SALT deduction cap?…
A: The SALT cap workaround was enacted in 2021 allowing entities taxed as S corporations or…
Q: Algoe expects to invest $2,500 annually for 15 years to yield an accumulated value of $67,880.25 on…
A: Interest Rate: For the usage of assets, a lender will charge an additional sum on top of the loan in…
Q: Davol Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year.…
A: Total budgeted manufacturing overhead for October = Budgeted variable manufacturing overhead +…
Q: Question 4 The main objective of XBRL is to: A. Produce a comprehensive body of accounting…
A: Introduction:- XBRL stands for Extensible Business Reporting Language. It used for business…
Q: Your Company uses a predetermined overhead rate based on machine hours to apply manufacturing…
A: Formula: Predetermined overhead rate = Total estimated manufacturing overhead cost/ Budgeted direct…
Q: Bonds Payable has a balance of $951,000 and Discount on Bonds Payable has a balance of $11,412. If…
A: Introduction:- The following basic information as follows under:- Bonds Payable has a balance of…
Q: ine will generate 568,000 per year in revenue and the direct o 7. Compute the payback period using…
A: Payback period = initial investment/cash flow per year
Q: When closing income statement accounts having credit balances, which of the following accounts will…
A: The accounts that are temporary in nature are to be closed at the end of a period and these are…
Q: SportsWorld purchased equipment costing $10,000. The equipment has a residual value of $1,000, and…
A: Description: Straight line method: Deduction of Residual value from Asset cost derives the…
Q: A Company issues four-year bonds with a $114,000 par value on January 1, 2021, at a price of…
A: Interest expense = 114000 x 5% x 6/12 = 2850 bond amortisation = (114000-109870)/8 = 516.25
Q: Given a net income of $50,000, sales of $2,000,000, variable costs of S25,000, fixed operating costs…
A: Formula: Degree of operating leverage = ( Sales value - Variable cost ) / ( Sales value - Variable…
Q: rader wants to form a position by combining two different European calls and two different European…
A: Strike Price Premium Call 48 1.5 Sell Call 50 -1 Buy Maximum Profit 0.5 Maximum Loss…
Q: Your Company uses a total of 15,000 units of a part that are produced and used every year. The…
A: Make cost is the cost of producing the product internally. Buy cost is the cost to purchase the…
Q: 6. Thistle Limited has the following information at 31 December 20X5. • 1,000,000 common shares…
A:
Step by step
Solved in 2 steps with 2 images
- 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'?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 interestOn 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…
- 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.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%.Taballa Ltd owns all the share capital of Amaroo Ltd. The income tax rate is 30%. The following transactions took place during the periods ended 30 June 2023 or 30 June 2024. (a) On 1 May 2023, Amaroo Ltd sold inventories costing $600 to Taballa Ltd for $1 200 on credit. On 30 June 2023, only half of these goods had been sold by Taballa Ltd, and Taballa Ltd had paid $600 to Amaroo Ltd. All remaining inventories were sold to external entities by 30 June 2024 and Taballa Ltd paid the outstanding amount to Amaroo Ltd on 5 May 2024. (b) On 1 January 2023, Taballa Ltd sold an item of plant to Amaroo Ltd for $10 000. Immediately before the sale, Taballa Ltd had the item of plant on its accounts for $ 12 000. Taballa Ltd depreciated items at 5% p. a. on the diminishing balance and Amaroo Ltd used the straight-line method over 10 years. (c) An inventories item with a cost of $4 000 was sold by Taballa Ltd to Amaroo Ltd for $3 600 on 1 January 2024. Amaroo Ltd intended to use this item as…
- PUP 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?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. make the journal entryAssume 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,…
- Light Inc. had the following activities during the current year: • Acquired 4,000 shares of Dark Inc. for P5.200,000. • Sold an investment in Lonely Inc. for P7.000,000 when the carrying value was P6.600,000. • Acquired a P10,000,000, 4-year certificate of deposit from a bank. During the year, interest of 175.,000 was paid to Light Inc. • Collected dividends of P240.000 on share dividends. How much should be reported as cash inflows from operating activities?Adam Company Limited was incorporated on 1st April to take over as from 1st January in the same year the existing business of Bijoy Brothers. Under the take over agreement all profits made from 1st January are to belong to the Company. The purchase consideration was $ 7,00,000. The vendors received half of it in cash on 1st July in the same year together with interest at 10 per cent per annum. For other half of the purchase consideration, they were allotted 3,500 fully paid up shares of 100 each in the Company. Following balances appeared in the Company's Ledger as at 31st December : 2$ 12,000 48,000 13,000 7,000 3,000 22,000 10,400 17,500 7,70,000 9,10,000 3,100 Share Capital:4,500 shares of $ 100 each fully paid (including vendors' shares) Bank Overdraft Cash on Hand Salaries and Wages Rent Received 4,50,000 1,65,000 Rates and Taxes 65,000 Repairs to Building 35,000 50,000 1,30,000 15,000 35,000 4,20,00 95,000 Sundry Creditors Fixed Deposits Received Freehold Land at Cost…Subsidiary Company S has $1,000,000 of bonds outstanding. The bonds have 10 years to maturity and pay interest at 8% annually. The parent has an average annual borrowing cost of 6% and wishes to reduce the interest cost of the consolidated company. What methods could be used to maintain the subsidiary as the debtor?