acct2017s2 wmcq期末考试多项选择练习题问题12使用以下数据.pdfVIP

Multiple Choice Practice Questions for ACCT6010 Final Exam Questions 1 and 2 use the following data: Chief is the chief parent entity of a group. The summarised balance sheets of Associate Pty as at 30 June 20X7 are as follows: Associate Pty Balance Sheet 30 June 20X7 Assets $300,000 Liabilities $ 75,000 Share capital 185,000 Retained earnings 40,000 Total liabilities and equity $300,000 1. If Chief had acquired a 20% interest in Associate Pty on 30 June 20X7 for $65,000 the debit to Investment in Associate would have been a. $45,000. b. $37,000. c. $65,000. d. $60,000. 2. Associate Pty ’s balance sheet reflects the fair value of asset and liabilities and it has no contingent liabilities. If Chief had acquired a 30% interest in Associate Pty on 30 June 20X7 for $75,000 the goodwill or excess luded in the acquisition would have been a. $7,500 goodwill. b. $7,500 excess. c. nil d. $150,000 excess. 3. Assume now that Chief had acquired a 20% interest in Associate Pty on 1 July 20X6 for $45,000 and during the year ended 30 June 20X7 Associate Pty had profit for the period of $25,000 and paid a post acquisition cash dividend of $10,000. Applying the equity accounting method, the journal entry for the share of associate’s profit for the year ended 30 June 20X7 would lude: a. Cr Investment in Associate $5,000. b. Dr I