Exam 12: Completing the Balance Sheet

LMN Ltd declared an interim dividend on 12 February 2016 of 5 cents per share (500 000 issued shares)and paid it on 3 March 2016. - The journal entry on 3 March 2016 would include:

XYZ buys a 24 per cent share in ABC for $80m.ABC's total net profit is $50m and it pays $4m in dividends to XYZ. -Using the cost method,what would be the revenue and investment amounts at year-end for this investment?

Springtown Ltd issued 10 000 ordinary shares for $2.50 each,payable $1 on application,50 cents on allotment and $1 in calls as required.The journal entries to record the allotment of 10 000 shares would include a:

On 1 January 2016,Sky-High Ltd acquired 100 000 shares (30 per cent of the voting interest)in Down Ltd for $600 000 cash.On 30 June 2016,Down Ltd announced its earnings per share for the first six months of 2016 at $1.50 per share.On 20 November,Down Ltd paid dividends to shareholders at $0.90 per share.On 31 December 2016,Down Ltd announced its earnings per share for 2016 at $2.80 per share (i.e. ,$1.30 additional since 30 June). - If Sky-High Ltd used the equity basis,which of the following accounting records would it make on 31 December 2016 in response to Down Ltd's earnings announcement?