Prepare all the necessary journal entries in the records

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Apple Ltd acquired 30% interest in Pie Ltd for $100,000 on 1 July 2012. Profits and Dividends for Pie Ltd for years ended 30 June 2013 to 2014 were as follows:

                                 Profit before tax                Income tax expense                 Dividends paid

2013                          $160,000                             $60,000                        $160,000

2014                           $140,000                               $50,000                     $30,000

Required:

Question 1: Prepare all the necessary journal entries in the records of Apple Ltd in relation to its investment in the associate, Pie Ltd based on the above information. Assume there are sufficient net assets for dividend distribution and Apple Ltd does not prepare consolidated financial statements.

Reference no: EM132606528

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