What portion of the balances of subsidiary stockholders' equity accounts are eliminated in preparing the consolidated balance sheet? Select one: a. All of the balances are eliminated b. Retained Earnings only C. Additional paid-in capital only d. Common stock only
Q: When an entity declares dividends * Only the outstanding shares are entitled to share dividends Only…
A: The dividend is the amount of available retained earnings distributed to the shareholders.
Q: True or False: If Company Accumulates Common Stock in Company B such that it acquires a 51% stake…
A: Consolidated financial statements - Consolidated financial statements will contain the financials of…
Q: Which statement is false concerning a comparison of a parent's books and the consolidated financial…
A: Consolidation is the process of combining the assets, liabilities, and other financial elements of…
Q: appear under the heading capital and reserves in a company balance sheet? A. Ordinary share…
A: The following appear under the heading capital and reserves in a company balance sheet: Ordinary…
Q: Which of the following is/are true about accounting for business combinations when stock is issued…
A: Accounting treatment for expenses in business combinations: When a company acquires…
Q: How is the Non-Controlling Interest displayed in a consolidated balance sheet? As a separate item in…
A: The correct Answer for the above mentioned question is given in the following steps for your…
Q: Which of the following statements are correct? 1.A company's authorised share capital must be…
A: Company means the form of business where management is separately from owner and have perpetual…
Q: Which of the following correctly reflects the effect of dividend? a. On the date of…
A: Important: As per the Policy of Bartleby if there are multiple question then we are allowed to do…
Q: 5. For cash-settled share based payment transactions, until the liability is settled, the entity is…
A: Since you have asked multiple questions, we will solve the first question for you . If you want any…
Q: Which of the following correctly reflects the effect of dividend? a. On the date of payment of…
A: Solution: Option a, b and c are incorrect due to following: a. On the date of payment of property…
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: What portion of the balances of subsidiary stockholders' equity accounts are eliminated in preparing…
A: The portion of each of the balances of subsidiary stockholders' equity accounts is eliminated. And…
Q: In general, consolidated financial statements should be prepared: O whenever the market value of the…
A: Financial statements of a company having many divisions or subsidiaries are called consolidated…
Q: A stock dividend: ) Is not a liability on the corporation's balance sheet. Does not reduce a…
A: A stock dividend is a dividend that is made to the shareholders in shares and not in cash. The stock…
Q: A subsidiary owns shares of its parent company. Which of the following is true concerning the…
A: The treasury stock approach represents that it focuses on the type of ownership the parent company…
Q: The purchase of treasury share does not affect Group of answer choices total assets. the amount of…
A: The treasury stock includes the shares that are repurchased from the shareholders of the business.
Q: Which of the following should be presented in the statement of changes in equity? A. Distributions…
A: The financial statements of the business include the income statement, balance sheet and statement…
Q: Which statement is FALSE? O A. Preferred stockholders receive assets before the common stockholders…
A: The preference shareholders are also known as preferred stock boulders. The stockholders have the…
Q: When share options issued to employees are vested prior to the predetermined vesting date, the…
A: Solution: As per IFRS, fair value of the share-based payment, determined at the grant date, should…
Q: In preparing a consolidated financial position, what shareholder’s equity account balances of…
A: Consolidated financial position: It presents financial position of an affiliated group of companies.…
Q: In consolidated financial statements, it is expected that: A. Retained earnings equals to the sum…
A: The answer for the multiple choice question and relevant explanation are presented hereunder :…
Q: A feature common to both stock splits and stock dividends is Select one: a. That there is no effect…
A: A feature common to both stock splits and stock dividends is that there is no effect on total…
Q: 5. Which of the following is incorrect regarding inclusion or shares in the weighted average number…
A: We shall answer the first question since the exact question wasn't specified. Please resubmit a new…
Q: Sale of treasury shares at less than cost shall be charged to * a. Loss on sale of treasury…
A:
Q: Company A owns shares of Company B and Company C. The statements of Company B are consolidated with…
A: The minority interest is the ownership in a company when owned stock is less than 50%.
Q: Which statement is incorrect? a. PAS 33 is required to be used by companies whose shares and…
A: Accounting standards are regarded as the rules and guidelines that are used by the business to…
Q: Consolidated financial statements are typically prepared when one company has A. a substantial…
A: Consolidated financial statements are prepared when a parent-subsidiary relationship exists. A…
Q: For each item below, indicate to which category of elements of financial statements it belongs.…
A: Assets means all the resources of the business, whether these are tangible or intangible assets.…
Q: The following independent statements may be true or false. Discuss the circumstances whereby the…
A: DIVIDEND IS THE AMOUNT OF MONEY A COMPANY PAY TO IT'S SHAREHOLDER REGULARLY OUT OF ITS PROFIT .
Q: against the related share premium b. Charged to an expense account c. Written off directly against…
A: (a) Charged against the related share premium
Q: Which statement is incorrect? * A. EPS disclosures are required for entities whose ordinary shares…
A: EPS = Earning Per Share It refers to company's net profit Divided by No of common share…
Q: Which feature is not applicable to common stock ownership?a. Right to receive dividends before…
A: Common stock: It can be defined as the form of corporate equity that represents the ownership…
Q: uction permi
A: The consolidated balances of various balance sheet accounts as,
Q: Choose the correct. A subsidiary owns shares of its parent company. Which of the following is true…
A: Treasury stock approach: The treasury stock approach in accounting for mutual ownerships requires…
Q: In a consolidated statements workpaper, which items are carried forward from one section to another?…
A: Following is the answer to the given question
Q: statements correctly relate to ordinary shares? i) They represent an ownership interest. ii)…
A:
Q: Which of the following information from the minutes of meetings would most likely affect the…
A: Retained earnings is the accumulated earnings of the business for the particular period of time.…
Q: A subsidiary's paid-in capital ledger accounts always are eliminated in the preparation of a…
A: When one company controls the other it is known as parent subsidiary relationship.
Q: Which of the following would NOT be included as equity in a corporate balance sheet?…
A: Equity: Equity capital is the permanent capital of the company. Investors of the equity capital are…
Q: Which of the following statements is incorrect?
A: Capital of the company is divided into units of small denomination and each unit is called a share.…
Q: If a parent company has controlling interest in a subsidiary which has no potentially dilutive…
A: 1. The correct answer is option (C)
Q: Which of the following would NOT be reported for capital stock in the contributed capital section of…
A: Balance Sheet contains: Assets account Liabilities account Shareholder's account
Q: Subscriptions receivable from sale of shares which are not collectible currently shall be presented…
A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…
Q: Which of the following is a characteristic of common stock? a. The right to the residual income…
A: The main source of finance for companies are debt and equity. Equity shares are of two types: common…
Q: olidated information Basic EPS amounts uses the profit attributable to ordinary equity holders…
A: The incorrect statement is : When an undertaking presents both consolidated and separate financial…
Q: Which statement is incorrect? * a. PAS 33 is required to be used by companies whose shares and…
A: Earnings per shares (EPS):- It is calculated the company's profit divided by the outstanding shares…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 2. All of the following will affect the retained earnings account, except a. Declaration of 10% bonus issue b. Quasi-reorganization thru recapitalization c. Adjustment due to overstatement of depreciation expense from previous reporting period and was known only this current year d. Issuance of treasury shares at P 29 per share when its cost is P 25 per share 3. Which of the following changes the total shareholder's equity balance? a. Declaration of large bonus issue b. Declaration of cash dividends c. Issuance of share certificates due to subscription receivable fully paid d. Issuance of share rights1. A company declared a cash dividend on its ordinary shares in December 2020 payable in January 2021. Retained earnings would A. increase on the date of declaration. B. not be affected on the date of payment C. not be affected on the date of declaration D. decrease on the date payment 2. Which of the following should be presented in the statement of changes in equity? A. Distributions to owners B. Investments by owners C. Change in ownership interest in subsidiary that does not result in a loss of control D. All of these are presented in the statement of changes in equityTRUE OR FALSE: Indicate whether the statements are true or false. 1. Worksheet elimination 1 will include only the subsidiary’s stock (par value and additional paid-in capital), Retained Earnings, and the parent’s Investment in Subsidiary account when the parent has acquired 100 percent of the subsidiary’s stock at book value at the beginning of the period. 2.
- nEED IN 10 MINUTES 9. On January 1, 20x1, an entity purchased marketable equity securities for P2,500,000. The entity paid commission and taxes of P190,000. The equity securities do not qualify as financial asset held for trading. The entity made irrevocable election to present unrealized gain and loss in other comprehensive income. The securities have a market value of P2,600,000, and P2,750,000 on December 31, 20x1 and December 31, 20x2. On July 1, 2022, half of the securities are sold for P1,400,000. On July 1, 2022, the net increase/ decrease in retained earnings account is (sample answer: 10,500 increase or 10,500 decrease)A 70% owned entity declares and pays cash dividend. What effect does the dividend have on the retained earnings and minority interest balance in the consolidated balance sheet? A. No effect on retained earnings and decrease on minority interest B. Decrease both retained earnings and minority interest C. Increase on retained earnings and decrease on minority interest D. No effect on either retained earnings or minority interestStatement 1: Upon expiry or lapse of stock rights, a necessary Journal Entry is required to recognize such transaction.Statement 2: Share/stock dividends of the same class are recognized by means of a memorandum entry only.Statement 3: Share/stock dividends of different class are recognized by debiting a new investment account and crediting the original investment account. A. All statements are incorrect B. All statements are correct C. Only one statement is correct D. Only two statements are correct
- 6. An entity provided the fo:louingdata for the year ended December 31. 2019:Retained earnings unappropriated. Januar> Overdepreciation of20i 8 due to prior period error. net oftax 400.000Net incomeRetained earning; appropriated for treasury (original balance is 3,000,000but reduced S) P200,000 by reason of reissuance of the treasury Shares)Retained earnings eppropria:ed for contingencies (begirråpg balance P70C,OOO. 300,000but increased by current appropriation ofP 100,000) 800,000Cash dividends paid to shareholders 1000.000Change in accounting policy from FIFO to a average — credit, net OftaxWhat is the balance of unappropriated retained earnings on December 31, 2019? 4,500.000 300.000b. 4,800,000Case 2: Earnings per ShareProgresso Corporation, one of the new audit clients, has not reported EPS data in itsannual reports to stockholders in the past. The president requested that you furnishinformation about the reporting of EPS data in the current year’s annual report inaccordance with GAAP.Required:a) Define the term earnings per share as it applies to corporation with a capitalizationstructure composed of only one class of common stock. Then explain how EPSshould be computed and how the information should be disclosed in thecorporation’s financial statements.b) Discuss the treatment, if any, that should be given to each of the following itemsin computing EPS for financial statement reporting:i. The declaration of current dividends on cumulative preferred stock.ii. The acquisition of some of the corporation’s outstanding common stockduring the current fiscal year (The stock was classified as treasury stock).iii. A two-for-one stock split of common stock during the current fiscal…3. Discuss the accounting treatment, if any, that should be given to each of the following items in computing earnings per share of ordinary shares for financial statement reporting.a) Outstanding preference shares issued at a premium with a par value liquidation right. b) The exercise at a price below market value but above book value of an ordinary share option issued during the current fiscal year to officers of the corporation.c) The replacement of a machine immediately prior to the close of the current fiscal year at a cost 20% above the original cost of the replaced machine. The new machine will perform the same function as the old machine that was sold for its book value. d) The declaration of current dividends on cumulative preference shares.e) The acquisition of some of the corporation's outstanding ordinary shares during the current fiscal year. The shares were classified as treasury shares.f) A 2-for-1 share split of ordinary shares during the current fiscal year.g) A…
- At the date of financial statements, ordinary shares issued would exceed ordinary shares outstanding as a result of the a declaration of share bonus b payment in full of subscribed shares c purchase of treasury shares d. declaration of a share split Quasi-reorganization effected thru revaluation of Property, plant and equipment a.eliminates the deficit by applying the revaluation surplus only up to the extent of the deficit b.eliminates the deficit by applying the share premium balance of a class of share only up to the extent of the deficit. c.eliminates the deficit up to the value of the revaluation surplus d.eliminates the deficit up to the value of the share premium from a class of share.I wanna know the transaction of dt ct sides . 1.The company sold assets previously revalued by 150 through revaluation reserve. dt asset 150 ct revaluation reserve 150 2.the company issued to shareholders 100 shares at a nominal value of 1 and issue price of 4. I do not know this transaction. 3.The company purchased on deferred payment shares of X company for immediate sale 50 shares at a value of 5 per share and commission of 1 per share. dt short term investment 300 ct liabilities 300 ( I am considering if ct : deferred cost)16 - Which of the following accounts is not included in the capital reserves account group? a) 522 Property, Plant and Equipment Revaluation Increases Account B) 521 Stock Cancellation Decisions Account NS) 523 Subsidiaries Revaluation Increases Account D) 549 Special Funds Account TO) 520 Stock Issue Premium Account