[Tom]

John, you are correct. The variable cost was 20 not 40. Thank you so much.

[Tom]

Thank you so much John! I’m not sure if that was a cryptic message in there but I just multiplied the lines to make a similar X, subtracted the two lines and solved for my answer. Solve a S Equation the way its supposed to be solved. *Together

Once more I made things more difficult than was necessary.

Will watch the videos again. Cheers.

[Tom]

I’m having the same problem with Kaplan. I intended to supplement John’s notes and videos with the book and an Exam kit which I purchased from Kaplan too. I’m a bit worried now. 10 hour work days and long commutes. Oh well, thats life I guess. Cant answer every question…

[Tom]

Thank you very much John.
you made it look so easy lol

[Tom]

Thanks.

[Tom]

I cant compare as I only used one book. I wasn’t exactly impressed with the Kaplan text though! 🙁

[Tom]

72% today.

I’m delighted. Didnt start studying that long ago.

Thanks very much for your help John, Gabriella and Pippa! Hopefully one day I can help students on here like you.

[Tom]

Ahhh Perfect! Understand it completely now!

The extra debit was the payment of the accrual.

The 10 is the under accrual that should have added on the 240 brought forward. Must be paid mistake or no mistake.

Exam on Friday. VERY nervous!

[Tom]

Hi Pippa. I understand it now and see my mistake. A bill is a bill. I was thinking to try and calculate how much was paid. Not what was the expense for the period. Thanks fr helping me realize.

HOwever, what i thought I understood about the accrual of 10$ I dont. In gathering the figure for the income statments-the bills. How does the 10$ can the amount of the bill quantity. If it belongs to another period shouldnt it be matched to that? Or shouldnt the question say that the bill was under-charged by 10$???

Thanks for your help!!

[Tom]

Thank you VERY much Christine. Really appreciate it!

[Tom]

Thanks Christine, but you arent given 10% in the question. How do you ascertain to get 10%?

[Tom]

Hi John. I have a question from a similar topic!

On 1 January 2011, Black acquired 76,500 ordinary equity shares in Foxworth for €208,000. On that date, Foxworth’s retained earnings amounted to €88,000 and the fair values of Foxworth’s net assets were equal to their carrying values.
Black measures non-controlling interests at dates of acquisitions at the proportion of identifiable net assets.
At 31 December 2013, the statements of financial position of the two entities were as follows:
Black Foxworth
Net assets € €
Sundry net assets 165,000 213,000
Investment in Foxworth 208,000
373,000 213,000
Equity
€1 ordinary equity shares200,000 85,000
Retained earnings 173,000 128,000
373,000 213,000
Foxworth’s equity share capital has remained unchanged since 1 January 2011. Goodwill has not been impaired since the date of acquisition.
What amount should appear on the consolidated statement of financial position at 31 December 2013 for goodwill?

Solution € €
Cost of investment in Foxworth 208,000
Non-controlling interest (10%) 17,300
225,300
Net assets of Foxworth at date of acquisition:
€1 ordinary equity shares 85,000
Retained earnings 88,000
(173,000)
Goodwill 52,300

The part I cant understand is how he calculates the Non-controlling interest part? 10%. Can anyone tell me how its done. Thanks very much for any help!!

[Tom]

Thanks very much John! Much appreciated.

Any idea about this one?

In May, Sunshine sold inventories on sale or return terms for €4,000. The cost to Sunshine was €1,600. The transaction has been recorded as a credit sale in Sunshine’s financial statements for the year ended 31 May 2013. In the past, some customers have returned inventories under this arrangement.

In June 2013, the customer accepted half of the inventories and returned the other half in good condition.
What adjustments, if any, should be made to the financial statements for the period ended 31 May 2013?

(A) No adjustments required.
(b) Sales and receivables should be reduced by €4,000 and closing inventories increased by €1,600.
(c) No adjustments to sales or receivables but closing inventories should be increased by €800.

The answer is (B). But if only half the goods are returned shouldn’t only have of the revenue by subtracted? Not all of it!? (4,000)

[Tom]

Ahhh adding a plus to a minus doesnt increase the minus. Silly. Thanks John (On both answers!).

[Tom]

Wow..thanks for the tips! Unfortunately it is too late for me to order the revision kit now. I want to do the exam next Friday and already I can see the new revision kit is for the changed course after the 26th of February. It would be slow to order anyway. Thanks for the tip about watching the videos (faster than notes) though!! Great advice and much appreciated.

Anyone else just used the Kaplan book with much success?

[Author]

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