In the trial balance of Company A on the 31st December year 1 we can find the following accounts:

Machinery (213) : 500 euros (debit);  Government Investments grants (130) 500 euros (credit).

We know that the grant was awarded on the 1st January Year 1 and that the machinery purchased has been depreciated 10% this year. 

With the previous information, which option do you think is correct regarding the entries to be done about the investment grant on the 31st December Year 1? 

Indicate which of the following statements is correct in terms of grants and how to enter them in the books.

On January 1st, the Government of Catalonia awards us a grant to finance furniture for a new soup kitchen we want to open in Barcelona. The total cost of that furniture is €240,000, and the grant covers 75% of that amount. The estimated useful life of that furniture is 10 years. We receive the grant money on January 31st and acquire the furniture on February 1st.

The moment we are awarded the grant, we have to enter it into the books as follows:

The General Shareholders Meeting agrees in March Year 2 the following distribution for the 1,200 net income of Year 1:

Offset of losses from previous years              200

Legal reserves                                                240

Dividends (including the interim)                    760

Considering that during Year 1 there has been an interm dividend of 600€, what will be the accounts to be considered on the credit side of the following entry in March Year 2? 

1,200 Net Income   (129)         ......??

In terms of foreign exchange differences, indicate which of the following statements is correct.

In terms of the net book value of the share:

We have in our balance sheet a liability of 1.000€ corresponding to a US supplier who invoiced us a 1.000$ purchase. On the 31st December the exchange rate is 1$=0,99 euros. What is the entry we should post? 

What is the legal requirement in Spain regarding the minimum payment of capital increases in Corporations (S.A) at the subscription moment?  

Company ABC increases capital in 1.000 shares with a total issuing price of 10 euros/ share. If the nominal value  of each share is  9 euros/ share and the full capital increase is subscribed and paid up from the first moment. 

What would be the correct entry? 

Company AAA closes fiscal year 1 with a profit of €320,000. As of 12/31 in year 1, its Equity includes the following: Capital €4,000,000, Legal reserves €800,000, Voluntary reserves €500,000 and Statutory reserves €100,000. When the time comes to distribute year 1’s profits, the company decides to distribute a dividend of 80,000, bearing in mind that it already distributed an interim dividend of 30,000 in December of year 1 (and the total dividend cannot exceed 80,000). Which of the following accounts would we include, amongst others, in the profit appropriation entry?