User Account

All Pages

Prepare the journal entries ignoring income tax effects

Assignment Help Taxation
Reference no: EM13838116

Assignment

Question 1.

"The only measurement of value which properly serves the objectives of financial reporting is historical cost. The obsession of standard-setters with various fair value concepts has made accounting information less fit for purpose." Evaluate this statement.

Indicative length: 1,000 words - a few pages. You are expected to express a conclusion about the quote, and persuade us by evidence and argument why we should agree with your conclusion, taking due account of contrary evidence and arguments. To answer the question fully, you will need to research information from sources beyond those that we have provided in this course; you should reference your sources properly. A marking rubric for this assignment will be provided on Stream.

Question 2.

On 1/1/2013, Shark Ltd acquired 40% of the contributed capital of Minnow Ltd for $2,020. On that date Minnow Ltd had Contributed Capital of $2,000 and Retained Earnings of $3,000. The other 60% of Minnow is owned by the Barracuda Group, but Shark has significant influence over Minnow and appoints two directors to Minnow's board. Shark Ltd controls a number of subsidiary companies.

Assume that all transactions described are for cash.

Information relating to Minnow's profits and dividends is listed below.

2013 2014

Net income $200 $400

Dividends $50 $150

Other information:

a) Shark's investment in Minnow has not been impaired.

b) Minnow sold inventory to Shark in 2014 at a selling price of $440, recording a gross profit on the sale of $50. As at 31/12/2014 25% of these goods had been sold by Shark to third parties at a gross profit of $20.

c) Both Shark and Minnow employ 31/12 balance dates.

Required:

Prepare the following journal entries, ignoring income tax effects. If no entry is required, say so. Number each entry clearly.

1) Entry in Shark's books to record the initial purchase of Minnow.

2) Entry in Shark's books to record the 2013 dividend from Minnow.

3) Entry in Shark's books to record any necessary adjustments at 31/12/2013.

4) Entry in Shark's books to record the purchase of inventory from Minnow.

5) Entry in Minnow's books to record the sale of inventory to Shark.

6) Entry in Shark's books to record any necessary adjustments at 31/12/2014.

7) Entry required in the consolidation worksheet for the Shark Group for 2014.

Reference no: EM13838116

Questions Cloud

Unit sphere centered : Problem 1: If D is the unit sphere centered at (0, 0, 0), evaluate
Importance of hrm and master program : "The Importance of HRM and Master Program" Please respond to the following: As you approach your final course in your academic program, discuss how your views about human resources in the workforce have changed throughout the time you have spent ..
Similarities and differences among types of teams used in tq : What are the similarities and differences among the types of teams used in TQ? How are Six Sigma project teams different from the other types of teams
What is the density of the unknown liquid : What is the density of the unknown liquid
Prepare the journal entries ignoring income tax effects : Prepare the following journal entries, ignoring income tax effects. If no entry is required, say so. Number each entry clearly. Entry in Shark's books to record the initial purchase of Minnow.
Demonstrates mastery in the rhetorical technique : Write thoughtfully with thorough detail and supporting examples to substantiate the claims you state. Write with purpose and direction that demonstrates mastery in the rhetorical technique of argument
What is the communication climate like in your organization : To what degree does your company use technology? Website? Sell products on it? What is the communication climate like in your organization
Can apple justify their behaviour : Can Apple justify their behaviour? Use the shareholder and stakeholder theories of corporate social responsibility to evaluate Apples behaviour and frame your answer.
What issues should be considered in drafting code of conduct : Within the Discussion Board area, write 600-800 words that respond to the following questions with your thoughts, ideas, and comments. Why is it important for a company to have a written code of conduct? What issues should be considered in drafting ..

Reviews

Write a Review

Taxation Questions & Answers

  Discussion post excluding formal citation

What are the merits of each argument and which side do you support and why? How does the use of capital punishment in Texas compare to other states?

  Depreciation expense will be reported for tax purposes

What annual depreciation expense will be reported on the income statement for the center and what annual depreciation expense will be reported for tax purposes?

  Public economics - taxation

Public Economics - Taxation, What if Matt had put his money in a Roth IRA instead and tax rate Matt faces in this problem will be the same in all years from now through retirement unless stated.

  Calculate marys taxable gifts for year

Calculate Marys taxable gifts for year and Mary was recently informed by the executor of Mom's will that Mom's estate--Mom died 1 year ago--is eligible for a death benefit of $150,000 from her retirement plan.

  1 donald owns a 60 interest in a partnership that earned

1. donald owns a 60 interest in a partnership that earned 230000 in the current year. he also owns 60 of the stock in a

  Determine what is ordinary income and capital gain

Determine what is ordinary income and capital gain/loss for Ben and how would that change under the options he and Reed suggest and what is an income payment or capital payment for the LLC?

  Describe and contrast the deficits projected

Describe and contrast the deficits projected under the baseline and alternative fiscal scenario and the implications of the projections based on the CBO report.

  Compare the benefits of deduction

Compare the benefits of a $4,000 deduction and a $4,000 tax credit for two single taxpayers, one with taxable income of $40,000 and the other with taxable income of $200,000.

  Question you are sitting in an office in fargo north dakota

question you are sitting in an office in fargo north dakota with joanne dwood human resources director of black hill

  Question prepare an essay in which you recommend the most

question prepare an essay in which you recommend the most advantageous tax filing status for spouse a and spouse b on

  How do these affect the shareholders of s corps taxes

What are the guidelines for handling charitable contributions within S Corporations? How do these affect the shareholders of S Corp's taxes?

  Evaluate what amount of dividends must the company pay

Evaluate what amount of dividends must the company pay the preferred shareholders in 2009 if they wish to pay the common stockholders a dividend?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd