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Little Company Declared a Dividend of $90,000 for the Period

Question 1

Multiple Choice

Little Company declared a dividend of $90,000 for the period ended 30 June 2005. Big Company owns 100 per cent of the equity of Little Company. Big Company accrues dividends when they are declared by its subsidiaries. What elimination entry would be required to prepare the consolidated financial statements for the group for the period ended 30 June 2005?


A) Little Company declared a dividend of $90,000 for the period ended 30 June 2005. Big Company owns 100 per cent of the equity of Little Company. Big Company accrues dividends when they are declared by its subsidiaries. What elimination entry would be required to prepare the consolidated financial statements for the group for the period ended 30 June 2005? A) B) C) D) E) None of the given answers.
B) Little Company declared a dividend of $90,000 for the period ended 30 June 2005. Big Company owns 100 per cent of the equity of Little Company. Big Company accrues dividends when they are declared by its subsidiaries. What elimination entry would be required to prepare the consolidated financial statements for the group for the period ended 30 June 2005? A) B) C) D) E) None of the given answers.
C) Little Company declared a dividend of $90,000 for the period ended 30 June 2005. Big Company owns 100 per cent of the equity of Little Company. Big Company accrues dividends when they are declared by its subsidiaries. What elimination entry would be required to prepare the consolidated financial statements for the group for the period ended 30 June 2005? A) B) C) D) E) None of the given answers.
D) Little Company declared a dividend of $90,000 for the period ended 30 June 2005. Big Company owns 100 per cent of the equity of Little Company. Big Company accrues dividends when they are declared by its subsidiaries. What elimination entry would be required to prepare the consolidated financial statements for the group for the period ended 30 June 2005? A) B) C) D) E) None of the given answers.
E) None of the given answers.

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