QUESTION ORDER IS DIFFERENT FOR EACH STUDENT
THE M ISSING SOLUTIONS WILL BE SENT SHORTLY
Question 1
.
The pro-forma journal entry to eliminate the depreciation relating to the prior year on the
sale of the video editing equipment is:
1.
Accumulated depreciation – Neptune Ltd 18 750
Retained earnings – Uranus Ltd 18 750
2.
Accumulated depreciation – Uranus Ltd 22 500
Retained earnings – Neptune Ltd 22 500
3.
Accumulated depreciation – Neptune Ltd 22 500
Depreciation – Uranus Ltd 22 500
4.
Accumulated depreciation – Uranus Ltd 18 750
Depreciation – Neptune Ltd 18 750
(1 700 000 – 1 450 000) x 9% x 10/12 = 18 750
Neptupe is depreciating the machine, therefore the depreciation should be eliminated from Neptune
, Question 2
Use the scenario to answer the following question.
The intragroup portion of arrear preference dividends up to the beginning of the current
year amounts to:
1. R45 581
2. R32 175
3. R42 900
4. R60 775
Uranus owns: 45 000/60 000 shares = 75%
Total preference dividend declared and paid= 103 675
Less Preference dividend for current year = 390 000 x 11% = 42 900
Intragroup preference dividend in arrear up to beginning of current year = (103 675 – 42 900) x 75% = R45 581
Question 3
Use the scenario to answer the following question.
In the current group context, other components of equity in the consolidated statement of
financial position comprises:
1.
Ordinary share capital, preference share capital, the revaluation surplus, retained earnings
and the non-controlling interests
2.
Only the revaluation surplus
3.
Ordinary share capital, preference share capital, the revaluation surplus and retained
earnings
4.
Ordinary share capital, the revaluation surplus and retained earnings
THE M ISSING SOLUTIONS WILL BE SENT SHORTLY
Question 1
.
The pro-forma journal entry to eliminate the depreciation relating to the prior year on the
sale of the video editing equipment is:
1.
Accumulated depreciation – Neptune Ltd 18 750
Retained earnings – Uranus Ltd 18 750
2.
Accumulated depreciation – Uranus Ltd 22 500
Retained earnings – Neptune Ltd 22 500
3.
Accumulated depreciation – Neptune Ltd 22 500
Depreciation – Uranus Ltd 22 500
4.
Accumulated depreciation – Uranus Ltd 18 750
Depreciation – Neptune Ltd 18 750
(1 700 000 – 1 450 000) x 9% x 10/12 = 18 750
Neptupe is depreciating the machine, therefore the depreciation should be eliminated from Neptune
, Question 2
Use the scenario to answer the following question.
The intragroup portion of arrear preference dividends up to the beginning of the current
year amounts to:
1. R45 581
2. R32 175
3. R42 900
4. R60 775
Uranus owns: 45 000/60 000 shares = 75%
Total preference dividend declared and paid= 103 675
Less Preference dividend for current year = 390 000 x 11% = 42 900
Intragroup preference dividend in arrear up to beginning of current year = (103 675 – 42 900) x 75% = R45 581
Question 3
Use the scenario to answer the following question.
In the current group context, other components of equity in the consolidated statement of
financial position comprises:
1.
Ordinary share capital, preference share capital, the revaluation surplus, retained earnings
and the non-controlling interests
2.
Only the revaluation surplus
3.
Ordinary share capital, preference share capital, the revaluation surplus and retained
earnings
4.
Ordinary share capital, the revaluation surplus and retained earnings
