50.1K

Verified Solution

Link Copied!

Both questions please

6. The following account information is for Extra Inc. as at December 31, 2017. All accounts have debit balances. 10 marks Identify the accounts from the list that should be classified as intangible assets. If the item is not an intangible asset, indicate where it should be reported in the financial statements. Assume Extra Inc. follows IFRS. Account/Item, Cable Television Franchises Research costs Cash Pr Annual Franchise Fee paid Account/Item Music copyrights Goodwill Accounts Receivable Leasehold Im In-process research & development acquired in a business combination Customer lists Non-compete covenants Notes Receivable Organization costs Excess o purchase price over fair value of identifiable net assets of TV C Plant & Equipment Film Contract rights Prepaid Expenses Brand Names Investments in Affiliated Companies Land internal 7. Prepare Bella Bella's Statement of Cash Flows for the year ended December 31, 2015. Bella Bella uses the indirect method for calculating cash flows from operating activities. The company follows IFRS and has elected to treat dividends paid as a financing activity [10 marks] Bella Bella Corporation Statement of Financial Position December 31, 2014 Cash Accounts Receivable (net) FV-NI investments Equipment Accumulated depreciation Land $20,000 Accounts Payable 21,200 Bonds Payable 32,000 Common Shares 119,000 Retained Earnings S30,000 41,000 100,000 23.200 (38,000) 40,000 S194,200 S194,200 Information for fiscal 2015 a. Bella Bella Corporation liquidated its FV-NI investment portfolio at a loss of $5,000 b. A piece of land was purchased for $38,000 c. Additional common shares were issued for cash proceeds of S30,000 d. $10,000 of dividends were declared and paid to common shareholders e. Net income was $35,000 f. Depreciation expense in 2015 was $12,000 g. Issued S30,000 in bonds to acquire new equipment h. December 31, 2015 balances were: Cash $70,200, Accounts Receivable (net) $42,000 and Accounts Payable $40,000

Answer & Explanation Solved by verified expert

See Answer