Account name Debit Credit Investment in Othello Share of profit of associate

Account name debit credit investment in othello share

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Account name Debit Credit Investment in Othello Share of profit of associate Cash Investment in Othello 40 000 12 000 40 000 12 000 (b) Desdemona does prepare consolidated financial statements. Prepare the entries to apply the equity method for 30 June 2015. Account name Debit Credit Investment in Othello Retained earnings Investment in Othello Share of profit of associate Dividend revenue Investment in Othello (20% x $30 000) 16 000 40 000 12 000 16 000 40 000 12 000
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14Question 7: Interest in joint operation (10 marks) On 1 July 2014, Viola Ltd and Sebastian Ltd enter into a 50:50 joint operation to explore for gold. Viola initially contributes cash of $40 000. Sebastian Ltd initially contributes land with a fair value of $40 000. The accounting records of the joint operation for 30 June 2015 show the following: Cash $ 10 000 Land 40 000 Exploration asset 36 000 Accounts payable 6 000 (a) What is a key difference between a joint operation and joint venture? (2 marks) A joint venture is structured through a separate vehicle (b) Prepare the journal entries of Viola Ltd to account for its interest in the joint operation in the financial statements for 30 June 2015 (8 marks) Account name Debit Credit Land in JO Cash in JO Cash Exploration asset in JO Accounts payable in JO Cash in JO 20 000 20 000 18 000 40 000 3 000 15 000
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15Question 8: Various Topics (10 marks) Answers for this question must be in the generalized answer sheet. 1. In Australia, the body responsible for the enforcement of accounting standards is: A) Australian Accounting Standards Board B) Australian Securities Investments Commission C) Australian Securities Exchange D) CPA Australia E) International Accounting Standards Board 2. Comprehensive income includes: 3. In accounting for intangible assets: 4. If there is an impairment loss of $40 000 on a cash generating unit (CGU) and the CGU has land of $50 000 and plant of $30 000, then the impairment loss allocated to land is:
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