Sutera Sdn Bhd is the parent company of Maya Sdn Bhd and a current account is...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Sutera Sdn Bhd is the parent company of Maya Sdn Bhd and a current account is used to record transactions between the companies. On 31 May 2020, the balance on this account appeared as an asset of RM26,750 in the books of Sutera Sdn Bhd and as a liability of RM14,600 in the books of Maya Sdn Bhd. This discrepancy is caused by the fact that Maya Sdn Bhd sent a payment of RM12,150 to Sutera Sdn Bhd on 30 May 2020. Sutera Sdn Bhd did not receive the payment until 3 June 2020. Required: Explain how this matter will be dealt with in the consolidated statement of financial position at 31 May 2020. Sutera Sdn Bhd is the parent company of Maya Sdn Bhd and a current account is used to record transactions between the companies. On 31 May 2020, the balance on this account appeared as an asset of RM26,750 in the books of Sutera Sdn Bhd and as a liability of RM14,600 in the books of Maya Sdn Bhd. This discrepancy is caused by the fact that Maya Sdn Bhd sent a payment of RM12,150 to Sutera Sdn Bhd on 30 May 2020. Sutera Sdn Bhd did not receive the payment until 3 June 2020. Required: Explain how this matter will be dealt with in the consolidated statement of financial position at 31 May 2020.
Expert Answer:
Answer rating: 100% (QA)
Solution At the time of consolidation Intercompany Owings shall be eliminated and only ... View the full answer
Posted Date:
Students also viewed these business communication questions
-
The comparative consolidated statement of financial position at December 31, Year 2, and the consolidated income statement for Year 2, of Parent Ltd. and its 70%-owned subsidiary are shown below....
-
In May 2007, TJX Co., the parent company of T.J. Maxx and other retailers, announced in a Securities and Exchange Commission filing that more than 45 million credit and debit card numbers had been...
-
In 2008 British Wallboard the parent company of Stonewall has seen enough of the volatility in the Canadian construction materials market and sells the company to a competitor US Corp Its subsidiary...
-
Describe how organizations should apply the general principles of the Uniform Guidelines on Employee Selection Procedures to practical selection decisions.
-
What are the main differences between the aggregate planning strategies?
-
Mehta Company traded a used welding machine (cost $9,000, accumulated depreciation $3,000) for office equipment with an estimated fair value of $5,000. Mehta also paid $3,000 cash in the transaction....
-
Which type of magnetic pole is located near Earth's geographic South Pole?
-
Accounting for bonds using amortized cost measurement based on the historical market interest rate. OBrien Corporation issues $8,000,000 face value, 8% semiannual coupon bonds maturing in 20 years....
-
You are planning a 30-day vacation in Malaysia in one year's time. The present charge for a luxury suite plus meals is RM760.00 per day and the RM is presently trading at RM 3.8000/$. Hence the $...
-
At a local university, the Student Commission on Programming and Entertainment (SCOPE) is preparing to host its first rock concert of the school year. To successfully produce this rock concert, SCOPE...
-
From expert discussion provided in articles on the Web, explain the link between the Magna Carta and the importance of common law in the English legal tradition.
-
Mr. Altman has an idea for a new project, and he is considering starting a new business. The investment cost for the new project is $42 million today. After one year, the project will either succeed...
-
Column A contains 75 randomly generated integers. Use python to graph the distribution of numbers in the x and y axis. Choose your own styling, title, and labels. Then determine the following in your...
-
XOX Technology Bhd. has proposed to undertake a capital reduction exercise by cancelling a portion of its issued share capital due to the accumulated losses of RM378,000 with the arrears on...
-
So far this year, Australia has been experiencing high volatility in the share market and in the value of the Australian dollar, along with inflation at a rate of 6% annually. If you were hired and...
-
Sales dropped 3 0 percent from last quarter, but no on can agree on why it happened. Some think it must be a new competitor in the market, some think it was an illadvised change in the promotional...
-
During a 31.5s interval, the velocity of a rocket increased from 163 m/s to 647 m/s. What was the displacement of the rocket during this time interval?
-
Do the three planes x + 2x + x 3 = 4, X X 3 = 1, and x + 3x = 0 have at least one common point of intersection? Explain.
-
You shoot a beam of electrons through a double slit to make an interference pattern. After noting the properties of the pattern, you then double the speed of the electrons. What effect would this...
-
Photon P in Figure Q28.35 moves an electron from energy level \(n=1\) to energy level \(n=3\). The electron jumps down to \(n=2\), emitting photon \(\mathrm{Q}\), and then jumps down to \(n=1\),...
-
Light consisting of \(2.7 \mathrm{eV}\) photons is incident on a piece of potassium, which has a work function of \(2.3 \mathrm{eV}\). What is the maximum kinetic energy of the ejected electrons? A....
Study smarter with the SolutionInn App