Q3. Jaafar acquired 200,000 ordinary shares of Sally on 1 January 2020 at a total cost...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Q3. Jaafar acquired 200,000 ordinary shares of Sally on 1 January 2020 at a total cost of RM300,000. At that date the accumulated profit of Sally was RM20,000. Shortly after, Sally declared and paid dividend of RM20,000 (net of tax) for the year ended 31 December 2019. Jaafar received its share of the dividends on 10 January 2020 and it is credited its profit and loss account. Given below are the Statement of Financial Position of Jaafar and Sally as at 31 December 2020. (Jaafar membeli 200,000 saham biasa Sally pada 1 Januari 2020 pada jumlah kos RM300,000. Pada tarikh itu untung terkumpul Sally adalah RM20,000. Kemudian Sally mengisytihar dan membayar dividen RM20,000 (bersih cukai) bagi tahun berakhir 31 Disember 2019. Jaafar menerima dividen saham itu pada 10 Januari 2020 dan dikreditkan ke dalam akaun untung rugi. Diberi berikut adalah Penyata Kedudukan Kewangan Jaafar dan Sally pada 31 Disember 2020.) Ordinary share (saham biasa) of RM1 each(setiap satu) Profit and Loss (Untung dan rugi) 10% Debentures (Debentur) Creditors (Pemiutang) Land and building (Tanah dan bangunan) Plant and equipment (Loji dan peralatan) (net) (bersih) Investment in (Pelaburan dalam) Sally (cost) (kos) Inventories (Inventori) Debtors (Penghutang) Bank Jaafar RM'000 500 136 200 44 880 250 180 300 50 45 55 880 Sally RM'000 300 60 50 30 440 150 160 40 25 65 440 Additional information (Maklumat tambahan): i. Provisions are to be made for the second half year's debenture interest for both companies. (Peruntukan dibuat untuk faedah debentur untuk separuh tahun kedua bagi kedua-dua syarikat.) ii. Proposed ordinary dividends Jaafar 10% and Sally 5%. (Dividen saham biasa dicadangkan Jaafar 10% dan Sally 5%.) iii. iv. On 1 January 2020 Jaafar valued the plant and equipment of Sally at RM250,000. Sally did not adjust the books to reflect the new value. Both the companies depreciate plant and equipment at 20% using the reducing balance method. The book value in the above statement of financial position is after providing 2020 depreciation charge. (Pada 1 Januari 2020 Jaafar telah menilai loji dan peralatan Sally pada RM250,000. Sally tidak melaraskan bukunya untuk menunjukkan nilai baru. Kedua syarikat menyusutnilaikan loji dan peralatan pada 20% dengan menggunakan kaedah baki berkurangan. Nilai buku dalam penyata kedudukan kewangan di atas adalah selepas mengambilkira susutnilai bagi 2020.) V. Half of the inventories of Sally were purchase from Jaafar. Jaafar makes a profit of 25% on invoice price on inventories sold to Sally, out of which 10% is to cover transportation costs. Unrealised profits in the opening inventories of Sally was RM1,000. (Separuh daripada inventori Sally telah dibeli daripada Jaafar. Jaafar mendapat untung 25% daripada harga invois inventori yang dijual kepada Sally. yang mana 10% daripadanya adalah untuk kos pengangkutan. Untung belum realis bagi stok awal Sally adalah RM1,000.) vi. Sally did not purchase or dispose of any plant and equipment during 2020. (Sally tidak membeli atau melupuskan loji dan peralatan pada 2020.) During the year Sally sold building, which had book value of RM150,000 for RM200,000 to Jaafar. The remaining useful life of this building is 25 years. Straight line depreciation method is adopted by the group. (Dalam tahun semasa Sally telah menjual bangunan dengan nilai buku RM150,000 dengan harga RM200,000 kepada Jaafar. Baki usia guna bangunan adalah 25 tahun. Kaedah garis lurus digunakan oleh kumpulan syarikat itu.) vii. viii. Debtor of Jaafar include RM25,000 due from Sally. However Sally remitted RM5,000 on 31 December 2020 which was received by Jaafar on 3 January 2021. (Penghutang bagi Jaafar termasuk RM25,000 daripada Sally. Walaubagaimanapun Sally telah membayar RM5,000 pada 31 Disember 2020 yang diterima Jaafar pada 3 Januari 2021.) Tax rate is 25%. (Kadar cukai adalah 25%.) Q3. Jaafar acquired 200,000 ordinary shares of Sally on 1 January 2020 at a total cost of RM300,000. At that date the accumulated profit of Sally was RM20,000. Shortly after, Sally declared and paid dividend of RM20,000 (net of tax) for the year ended 31 December 2019. Jaafar received its share of the dividends on 10 January 2020 and it is credited its profit and loss account. Given below are the Statement of Financial Position of Jaafar and Sally as at 31 December 2020. (Jaafar membeli 200,000 saham biasa Sally pada 1 Januari 2020 pada jumlah kos RM300,000. Pada tarikh itu untung terkumpul Sally adalah RM20,000. Kemudian Sally mengisytihar dan membayar dividen RM20,000 (bersih cukai) bagi tahun berakhir 31 Disember 2019. Jaafar menerima dividen saham itu pada 10 Januari 2020 dan dikreditkan ke dalam akaun untung rugi. Diberi berikut adalah Penyata Kedudukan Kewangan Jaafar dan Sally pada 31 Disember 2020.) Ordinary share (saham biasa) of RM1 each(setiap satu) Profit and Loss (Untung dan rugi) 10% Debentures (Debentur) Creditors (Pemiutang) Land and building (Tanah dan bangunan) Plant and equipment (Loji dan peralatan) (net) (bersih) Investment in (Pelaburan dalam) Sally (cost) (kos) Inventories (Inventori) Debtors (Penghutang) Bank Jaafar RM'000 500 136 200 44 880 250 180 300 50 45 55 880 Sally RM'000 300 60 50 30 440 150 160 40 25 65 440 Additional information (Maklumat tambahan): i. Provisions are to be made for the second half year's debenture interest for both companies. (Peruntukan dibuat untuk faedah debentur untuk separuh tahun kedua bagi kedua-dua syarikat.) ii. Proposed ordinary dividends Jaafar 10% and Sally 5%. (Dividen saham biasa dicadangkan Jaafar 10% dan Sally 5%.) iii. iv. On 1 January 2020 Jaafar valued the plant and equipment of Sally at RM250,000. Sally did not adjust the books to reflect the new value. Both the companies depreciate plant and equipment at 20% using the reducing balance method. The book value in the above statement of financial position is after providing 2020 depreciation charge. (Pada 1 Januari 2020 Jaafar telah menilai loji dan peralatan Sally pada RM250,000. Sally tidak melaraskan bukunya untuk menunjukkan nilai baru. Kedua syarikat menyusutnilaikan loji dan peralatan pada 20% dengan menggunakan kaedah baki berkurangan. Nilai buku dalam penyata kedudukan kewangan di atas adalah selepas mengambilkira susutnilai bagi 2020.) V. Half of the inventories of Sally were purchase from Jaafar. Jaafar makes a profit of 25% on invoice price on inventories sold to Sally, out of which 10% is to cover transportation costs. Unrealised profits in the opening inventories of Sally was RM1,000. (Separuh daripada inventori Sally telah dibeli daripada Jaafar. Jaafar mendapat untung 25% daripada harga invois inventori yang dijual kepada Sally. yang mana 10% daripadanya adalah untuk kos pengangkutan. Untung belum realis bagi stok awal Sally adalah RM1,000.) vi. Sally did not purchase or dispose of any plant and equipment during 2020. (Sally tidak membeli atau melupuskan loji dan peralatan pada 2020.) During the year Sally sold building, which had book value of RM150,000 for RM200,000 to Jaafar. The remaining useful life of this building is 25 years. Straight line depreciation method is adopted by the group. (Dalam tahun semasa Sally telah menjual bangunan dengan nilai buku RM150,000 dengan harga RM200,000 kepada Jaafar. Baki usia guna bangunan adalah 25 tahun. Kaedah garis lurus digunakan oleh kumpulan syarikat itu.) vii. viii. Debtor of Jaafar include RM25,000 due from Sally. However Sally remitted RM5,000 on 31 December 2020 which was received by Jaafar on 3 January 2021. (Penghutang bagi Jaafar termasuk RM25,000 daripada Sally. Walaubagaimanapun Sally telah membayar RM5,000 pada 31 Disember 2020 yang diterima Jaafar pada 3 Januari 2021.) Tax rate is 25%. (Kadar cukai adalah 25%.)
Expert Answer:
Answer rating: 100% (QA)
1Provision of interest on debentures to be made Jaafar 200000 x 10 x 12 10000 ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Posted Date:
Students also viewed these accounting questions
-
Sentosa Bhd memperoleh 80% kepentingan modal ekuiti Selasih Bhd pada 1 Januari 2019. Pada tarikh tersebut, perolehan tertahan Selasih Bhd ialah RM6,000,000. Sentosa Bhd acquired 80% equity interest...
-
Q2. You are given the Statement of Comprehensive Income of Mubin and Alya for the year ended 31 December 2019. (Anda diberi Penyata Pendapatan Komprehensif bagi Mubin dan Alya bagi tahun berakhir 31...
-
Q1. The following is the Statement of Financial Position of BIDIN Sdn. Bhd. as at 30 June 2020. (Berikut merupakan Penyata Kedudukan Kewangan bagi BIDIN Sdn Bhd pada 30 Jun 2020.) RM'000 Share...
-
How to respond to this response The effective utilization of data is integral to enhancing efficiency and making informed decisions?
-
Jacobs, owner of a farm, entered into a contract with Earl Walker in which Walker agreed to paint the buildings on the farm. As authorized by Jacobs, Walker acquired the paint from Jones with the...
-
A system that controls the mean arterial pressure during anesthesia has been designed and tested [12]. The level of arterial pressure is postulated to be a proxy for depth of anesthesia during...
-
Why are controls and reporting so important?
-
Referring to the Texas Lotto situation in Problem 7-20 suppose the investor has changed his attitude about the investment and wishes to give greater emphasis to the risk of the investment, now the...
-
Classify and describe in detail the four categories of hazard risk: property, liability, personnel, and net income and address the following: Describe a related real world experience How do the four...
-
On March 1, Marigold Inc sells 1,400 common shares to its employees at $26 per share and lends the money to the employees to buy the new shares in exchange for a note receivable The employees pay 45...
-
Issue #1 John and Marsha are married and filed a joint return for 2020. During 2020, Marsha was employed as an assistant cashier at a local bank and, as such, was able to embezzle $175,000, none of...
-
What type of planning is completed by middle managers?
-
Qwerty Company had 100,000 of P 15 par value ordinary shares on January 1,2019. During 2019, the following transactions pertaining to its ordinary shares occurred: Purchased 5,000 shares as treasury...
-
consider the everyday task of getting to work or school on time on the morning. using a cause and effect analysis fishbone describe reasons why you might arrive late. list tye 4 major categories of...
-
- WESTCHESTER, III. With the semester drawing to a close, millions of college students are preparing to take their final exams. Unfortunately, research is increasingly showing that more and more...
-
Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Kyan Company Data from the current year-end Barco Company Kyan Company Data...
-
Placing a dollar value on a job's worth is called ________. market pricing job enlarging job evaluation job analysis
-
You have just begun your summer internship at Omni Instruments. The company supplies sterilized surgical instruments for physicians. To expand sales, Omni is considering paying a commission to its...
-
Refer to E 2-9 and respond to the following requirements. In E 2-9 Prepare the necessary adjusting entries at December 31, 2018, for the Microchip Company for each of the following situations. Assume...
-
For each of the following situations involving annuities, solve for the unknown (?). Assume that interest is compounded annually and that all annuity amounts are received at the end of each period....
-
CircuitTown commenced a gift card program in January 2018 and sold $10,000 of gift cards in January, $15,000 in February, and $16,000 in March 2018 before discontinuing further gift card sales....
-
Accounting for Partly Completed Events: A Prelude to Chapter 3} Ehrlich Smith, the owner of The Shoe Box, has asked you to help him understand the proper way to account for certain accounting items...
-
Explain how the periodicity assumption, revenue recognition principle, and matching concept affect the determination of income. - The revenue recognition principle under IAS 18 currently specifies...
-
Professional and Ethical Behaviour} Your close friend Avery was recently hired to work in the accounting department at Ted's Automotive Ltd. You are excited to have your friend working at the same...
Study smarter with the SolutionInn App