Select the correct answer for each of the following questions.A corporation using the equity method of...
Select the correct answer for each of the following questions.
A corporation using the equity method of accounting for its investment in a 40 percent-owned investee, which earned $20,000 and paid $5,000 in dividends, made the following entries:
Investment in Investee | 8,000 |
|
Equity in Earnings of Investee |
| 8,000 |
Cash | 2,000 |
|
Dividend Revenue |
| 2,000 |
What effect will these entries have on the investor’s statement of financial position?
a. Financial position will be fairly stated.
b. Investment in the investee will be overstated, retained earnings understated.
c. Investment in the investee will be understated, retained earnings understated.
d. Investment in the investee will be overstated, retained earnings overstated.
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Select the correct answer for each of the following questions.A corporation using the equity method of...
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1- Under IFRS, which of the following is generally
not a guideline for recognizing revenue?
The transaction price is determinable.
When (or as) the company satisfies the performance
obligation.
The contract is identified with the client.
Collection is reasonably assured.
2- If Bee Corp. fails to adjust the Unearned Rent account for
rent that has been earned, what effect will this have on that
month’s financial statements?
Liabilities will be understated and revenues will be
understated.
Assets will be understated...
8) Daisy Co. previously received & recorded $5,000 cash from a client for future consulting services. Now Daisy Co. has provided $3,000 of the services and earned that revenue. What is the necessary adjusting entry? Debit Credit If this adjustment is not made, the following are overstated, understated, or not impacted: (completed for you on this question) Assets: not impacted Revenue: understated Liabilities: overstated Expense:_not impacted Stockholders' Equity: understated 9) Interest of $450 has accrued on a note payable. What...
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The CFO of the Perez Microscope Corporation intentionally
misclassified a downstream transportation expense in the amount of
$671,600 as a product cost in an accounting period when the company
made 9,200 microscopes and sold 7,500 microscopes. Perez rewards
its officers with bonuses that are based on net earnings.
Required
Indicate whether the elements on the financial statements (i.e.,
assets, liabilities, equity, revenue, expense, and net income)
would be overstated or understated as a result of the
misclassification of the downstream...
Please help with the one I got wrong, I don't understand what
the correct answer should be
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