Question 1

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Jean and John Inc had the following balance sheets on August 31,2007:  On August 31S1U1P1,S1S1P02007,Jean's date of acquisition,Jean Inc.purchased 90% of John Inc for $400,000.
-Prepare Jean Inc's consolidated Balance Sheet on the date of acquisition using the Entity Theory.

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Jean...

Question 2

Company A owns all of the outstanding common voting shares of Company B,which is said to have 500,000 shares.However,Company B's bondholders have a conversion option,which,if exercised would be convertible to 600,000 voting shares.50% of Company B's current Board Members are Company A Executives.How should Company A account for its investment in Company B?

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Question 3

Company A Inc.owns a controlling interest in Company B.which is located overseas.Company A and B are in entirely different lines of business.Company A wishes to file a request allowing it to not consolidate its financial statements with those of Company B.Assuming that Company A is based in Canada,is this allowed? Explain.

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Question 4

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Keen and Lax Inc had the following balance sheets on October 31,2007: 
-Assume once again that Keen Purchases 100% of Lax.However,in this instance,Keen acquired Lax for only $100,000.Prepare any journal entries you feel are necessary on the date of acquisition prior to the preparation of Consolidated Financial Statements.

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Keen and...

Question 5

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Keen and Lax Inc had the following balance sheets on October 31,2007: 
-Assuming that Keen Inc.purchases 80% of Lax Inc.for $240,000,prepare the Consolidated Balance Sheet on the Date of Acquisition.

Accepted Answer

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Keen and...

Question 6

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Keen and Lax Inc had the following balance sheets on October 31,2007: 
-Assuming that Keen Inc.purchases 100% of Lax Inc.for $200,000,prepare the Consolidated Balance Sheet on the Date of Acquisition.

Accepted Answer

The answer of The following data pertains to Questions
Keen and...

Question 7

There are a number of theories of how financial statements should be prepared for non-wholly owned subsidiaries.Briefly discuss each theory and provide your reasoning to support the theory that is being adopted under IFRSs.

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Question 8

Discuss the disclosure requirements for long term investments including accounting policies and NCI.

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Question 9

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Keen and Lax Inc had the following balance sheets on October 31,2007: 
-Assuming that Keen Inc.purchases 80% of Lax Inc.for $240,000,prepare any journal entries you feel are necessary on the date of acquisition prior to the preparation of Consolidated Financial Statements.Assume that the Entity Method applies.

Accepted Answer

The answer of The following data pertains to Questions
Keen and...

Question 10

The following data pertains to Questions 
Jean and John Inc had the following balance sheets on August 31,2007:  On August 31S1U1P1,S1S1P02007,Jean's date of acquisition,Jean Inc.purchased 90% of John Inc for $400,000.
-Prepare Jean Inc's consolidated Balance Sheet on the date of acquisition using the Proprietary Theory.

Accepted Answer

The answer of The following data pertains to Questions 
Jean...

Question 11

Assume the same facts as Question 62 except that Company B's Bondholders had a conversion option which,if exercised,would be convertible to 2,000,000 common voting shares.Would this change your response? Explain.

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The answer of Assume the same facts as Question 62...

Question 12

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Keen and Lax Inc had the following balance sheets on October 31,2007: 
-Assume that the following draft balance sheet was prepared by a co-worker subsequent to Keen's 80% purchase of Lax Inc for $240,000.Assuming this balance sheet is devoid of technical errors,what can be concluded about the balance sheet below?

Accepted Answer

The answer of The following data pertains to Questions
Keen and...

Quiz 4: Consolidated Statements on Date of Acquisition

The following data pertains to Questions Keen and Lax Inc had the following balance sheets on October 31,2007: -Assuming that Keen Inc.purchases 80% of Lax Inc.for $240,000,prepare the Consolidated Balance Sheet on the Date of Acquisition.

The following data pertains to Questions Keen and Lax Inc had the following balance sheets on October 31,2007: -Assuming that Keen Inc.purchases 100% of Lax Inc.for $200,000,prepare the Consolidated Balance Sheet on the Date of Acquisition.

There are a number of theories of how financial statements should be prepared for non-wholly owned subsidiaries.Briefly discuss each theory and provide your reasoning to support the theory that is being adopted under IFRSs.

Discuss the disclosure requirements for long term investments including accounting policies and NCI.

Assume the same facts as Question 62 except that Company B's Bondholders had a conversion option which,if exercised,would be convertible to 2,000,000 common voting shares.Would this change your response? Explain.