Hi everyone,
I was given a test exercise by an interviewer and was unable to complete this particular question (so I know I scored zero for this question):
Here is the test problem:
Rebates Receivable $2,000
Less:Shares issued in lieu ($1,500)
Net rebate received $500
Dividends received $100
Less: Imputation credits ($33)
Net dividends received $567
The initial journal entry given by default was Dr Bank $567
Cr Net dividends received $567
The next step should be to gross up the dividends received:
Dr Imputation credits $33
Cr Dividends received $33
I am unsure what the journal entry should be to account for the Rebates Receivable and
Shares issued in lieu.
Any help would be appreciated, even if you are not from NZ.
I was given a test exercise by an interviewer and was unable to complete this particular question (so I know I scored zero for this question):
Here is the test problem:
Rebates Receivable $2,000
Less:Shares issued in lieu ($1,500)
Net rebate received $500
Dividends received $100
Less: Imputation credits ($33)
Net dividends received $567
The initial journal entry given by default was Dr Bank $567
Cr Net dividends received $567
The next step should be to gross up the dividends received:
Dr Imputation credits $33
Cr Dividends received $33
I am unsure what the journal entry should be to account for the Rebates Receivable and
Shares issued in lieu.
Any help would be appreciated, even if you are not from NZ.