Question 2 On 1 July 2018, Poon Ltd acquired 100% of the equity in Soon Ltd....
Question 2 On 1 July 2018, Poon Ltd acquired 100% of the equity in Soon Ltd. On 1 July 2019, Poon Ltd sold an item of plant to Soon Ltd for $32,000. This plant had a carrying amount in the records of Poon Ltd of $28,000 at time of sale. This type of plant is depreciated at 20% per year on cost.
Required: Prepare the consolidation journal entries in relation to the sales of plant necessary to prepare the consolidated financial statements for the year ended 30 June 2020.
Homework Answers
Add Answer to:
Question 2 On 1 July 2018, Poon Ltd acquired 100% of the equity
in Soon Ltd....
Question 1 King Ltd acquired 100% of the share capital of Sing Ltd on 1 July...
Question 1 King Ltd acquired 100% of the share capital of Sing Ltd on 1 July 2015, for $356,000. At the acquisition date, the equity of Sing Ltd comprise of the following: $ Share capital 200,000 Retained earnings 80,000 Total 280,000 The identifiable net assets of Sing Ltd were recorded at fair value at the date of acquisition, except for inventory that had a fair value which was $2,000 higher than its carrying amount, and an item of plant...
On 1 July 2013 David Ltd acquired all of the share capital of Goliath Limited for a consideration...
On 1 July 2013 David Ltd acquired all of the share capital of Goliath Limited for a consideration of $500,000 cash and a brand that was held in their accounts at a book value of $10,000 but at 1 July 2013 had a fair value of $24,000. At that date all the identifiable assets and liabilities were recorded at fair value with the exception of: The inventory was all sold by 30/6/14. The remaining useful life of the plant is...
On 1 July 2013 David Ltd acquired all of the share capital of Goliath Limited for a consideration...
On 1 July 2013 David Ltd acquired all of the share capital of Goliath Limited for a consideration of $500,000 cash and a brand that was held in their accounts at a book value of $10,000 but at 1 July 2013 had a fair value of $24,000 At that date all the identifiable assets and liabilities were recorded at fair value with the exception of ASSET Inventory Land Plant (less depn) Book Value Market Value 12,000 28,000 10,000 25,000 20,000...
On 1 July 2017, Parent Ltd acquired all the shares of Son Ltd, on a cum-div....
On 1 July 2017, Parent Ltd acquired all the shares of Son Ltd, on a cum-div. basis, for $3,230,000. At this date, the equity of Son Ltd consisted of: $1,200,000 Share capital -600 000 shares General reserve Retained earnings 500,000 900,000 At the acquisition date, Son Ltd reported a dividend payable of $50,000 and its assets included $100, 000 of recorded goodwill. The dividend payable at the acquisition date was subsequently paid in August 2017. On 1 July 2017, all...
Sky Ltd acquired all the issued shares (Ex div.) of Nu Ltd on 1 July 2018...
Sky Ltd acquired all the issued shares (Ex div.) of Nu Ltd on 1 July 2018 for $100 000. At this date Nu Ltd recorded a dividend payable of $10 000 and equity of: | Share capital Retained earnings | Asset revaluation surplus $54 000 36 000 18 000 All the identifiable assets and liabilities of Nu Ltd were recorded at amounts equal to their fair values at acquisition date except for: Inventories Machinery (cost $100 000) Carrying amount 16...
Part A The Wholesale Ltd acquired 80 per cent of the shares of House Construction Ltd...
Part A The Wholesale Ltd acquired 80 per cent of the shares of House Construction Ltd on 30 June 2020 for a consideration of $800,000. The share capital and reserves of House Construction Ltd at the date of acquisition were: Share capital Retained earnings Revaluation surplus $550,000 $100,000 $150,000 All assets of House Construction Ltd were fairly valued at the date of acquisition, except for a major plant that had a fair value $26,000 greater than its carrying amount. The...
On 1 July 2015, Fluffy Ltd acquired all the issued shares of Glider Ltd. Fluffy Ltd...
On 1 July 2015, Fluffy Ltd acquired all the issued shares of
Glider Ltd. Fluffy Ltd paid $30 000 in cash and 20 000 shares in
Fluffy Ltd valued at $3 per share. At this date, the equity of
Glider Ltd consisted of $66 000 share capital and $6000 retained
earnings.
At 1 July 2015, all the identifiable assets and liabilities of
Glider Ltd were recorded at amounts equal to their fair values
except for:
Additional information
(a) Fluffy Ltd...
On 1 July 2017, Guinness Ltd acquired two assets within the same class of plant and...
On 1 July 2017, Guinness Ltd acquired two assets within the same class of plant and equipment for cash. Information on these assets is as follows. Cost ($) Expected Useful Life Machine A 100,000 5 years Machine B 60,000 3 years The machines are expected to generate benefits evenly over their useful lives. The class of plant and equipment is accounted for subsequent to acquisition using the revaluation model. At 30 June 2018, information about the assets is as follows....
Amber Ltd owns all of the shares of VStone Ltd. In relation to the following intragroup...
Amber Ltd owns all of the shares of VStone Ltd. In relation to the following intragroup transactions, all parts of which are independent unless specified, prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 2019. Assume an income tax rate of 30%. (a) On 1 January 2018, Amber Ltd sold inventory costing $6000 to VStone Ltd at a transfer price of $9000. On 1 September 2018, VStone Ltd sold half these items...
Question 3 28 marks On 1 July 2017, Guinness Ltd acquired two assets within the same...
Question 3 28 marks On 1 July 2017, Guinness Ltd acquired two assets within the same class of plant and equipment for cash. Information on these assets is as follows. Cost ($) Expected Useful Life Machine A 100,000 5 years Machine B 60,000 3 years The machines are expected to generate benefits evenly over their useful lives. The class of plant and equipment is accounted for subsequent to acquisition using the revaluation model. At 30 June 2018, information about the...
On 1 July 2013 David Ltd acquired all of the share capital of Goliath Limited for a consideration of $500,000 cash and a brand that was held in their accounts at a book value of $10,000 but at 1 July 2013 had a fair value of $24,000 At that date all the identifiable assets and liabilities were recorded at fair value with the exception of ASSET Inventory Land Plant (less depn) Book Value Market Value 12,000 28,000 10,000 25,000 20,000...
On 1 July 2017, Parent Ltd acquired all the shares of Son Ltd, on a cum-div. basis, for $3,230,000. At this date, the equity of Son Ltd consisted of: $1,200,000 Share capital -600 000 shares General reserve Retained earnings 500,000 900,000 At the acquisition date, Son Ltd reported a dividend payable of $50,000 and its assets included $100, 000 of recorded goodwill. The dividend payable at the acquisition date was subsequently paid in August 2017. On 1 July 2017, all...
Sky Ltd acquired all the issued shares (Ex div.) of Nu Ltd on 1 July 2018 for $100 000. At this date Nu Ltd recorded a dividend payable of $10 000 and equity of: | Share capital Retained earnings | Asset revaluation surplus $54 000 36 000 18 000 All the identifiable assets and liabilities of Nu Ltd were recorded at amounts equal to their fair values at acquisition date except for: Inventories Machinery (cost $100 000) Carrying amount 16...
On 1 July 2015, Fluffy Ltd acquired all the issued shares of
Glider Ltd. Fluffy Ltd paid $30 000 in cash and 20 000 shares in
Fluffy Ltd valued at $3 per share. At this date, the equity of
Glider Ltd consisted of $66 000 share capital and $6000 retained
earnings.
At 1 July 2015, all the identifiable assets and liabilities of
Glider Ltd were recorded at amounts equal to their fair values
except for:
Additional information
(a) Fluffy Ltd...
Question 3 28 marks On 1 July 2017, Guinness Ltd acquired two assets within the same class of plant and equipment for cash. Information on these assets is as follows. Cost ($) Expected Useful Life Machine A 100,000 5 years Machine B 60,000 3 years The machines are expected to generate benefits evenly over their useful lives. The class of plant and equipment is accounted for subsequent to acquisition using the revaluation model. At 30 June 2018, information about the...
Most questions answered within 3 hours.
-
1. Are all good samples random?
2. Magazines often report surveys giving statistics such as “63%...
asked 2 minutes ago -
Buying your in-laws a gift because it’s expected is
due to the ____________ motive of gift-giving....
asked 10 minutes ago -
Discuss the pros and cons of collaborative software such
as SameTime. Does it increase productivity? What...
asked 7 minutes ago -
A large cable company reports the following.
80% of its customers subscribe to its cable TV...
asked 9 minutes ago -
Calculate the expected value, the variance, and the standard
deviation of the given random variable X....
asked 53 minutes ago -
A hospital performs 100 surgeries per week. The probability that
complications after surgery occur is 10%....
asked 1 hour ago -
1 point) Given the significance level α=0.01 find the following:
(a) left-tailed z value z= (b)...
asked 51 minutes ago -
Assuming you are the head of the software development unit at
Cyber.Soft, explain and justify why...
asked 17 minutes ago -
Magnesium and nitrogen react in a combination reaction to
produce magnesium nitride. 3 Mg + N2...
asked 25 minutes ago -
Two electrons are initially at rest separated by a distance of
2nm. At time t=0, they...
asked 23 minutes ago -
A martial artist is practicing breaking 5 boards. He is able to
break aboard with probability...
asked 30 minutes ago -
The rate constant of a first-order reaction is 2.95 × 10−4 s−1
at 350.° C. If...
asked 33 minutes ago