Question

On 1 January 2017, Dark Ltd acquired all the issued shares (cum div.) of Sam Ltd...

On 1 January 2017, Dark Ltd acquired all the issued shares (cum div.) of Sam Ltd for

$820 000. At that date, the equity of Sam Ltd was recorded at:

                                    Share capital               $500 000

                                    Reserves                      200 000

                                    Retained earnings       50 000

On 1 January 2017, the records of Sam Ltd also showed;

                           Carrying amount         Fair value

Land                  $30000                        $ 55000

Further Sam Ltd had a dividend payable of $10 000, the dividend to be paid in March 2017. All other assets and liabilities were carried at amounts equal to their fair values.

Required: Prepare the consolidation worksheet entries on 1 January 2017, immediately after combination (tax rate of 30%)

Part A: Acquisition analysis :

_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________________________________________________________________________

Part B: Business combination valuation entries (2.5 marks):

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Part C: Pre-acquisition entries (3.5marks):

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
6. On 1 January 2020, Big Ltd acquired all the issued shares (non cum. div.) of...
6. On 1 January 2020, Big Ltd acquired all the issued shares (non cum. div.) of small Ltd for $750 000. At that date, the equity of small Ltd was recorded at:                                                 Share capital                       $350,000                                                 Reserves                               150,000                                                 Retained earnings              100 000 On 1 January 2020, the records of small Ltd also showed that the carrying value of the land is $40,000 with a fair value of $50,000 . Further small Ltd had a dividend payable of $5...
On 1 July 2023, Gordon Ltd acquired all the issued shares (cum div.) of Henry Ltd...
On 1 July 2023, Gordon Ltd acquired all the issued shares (cum div.) of Henry Ltd for $528000. At that date, the financial statements of Henry Ltd showed the following information. Share capital 220000 General reserve 110000 Retained earnings 154000 Dividend payable 44000 All the assets and liabilities of Gordon Ltd were recorded at amounts equal to their fair values at the acquisition date. The dividend payable reported at 1 July 2023 by Henry Ltd was paid on 15 August...
Corporate Accounting 16. On 1 January 2020, Big Ltd acquired all the issued shares (non cum....
Corporate Accounting 16. On 1 January 2020, Big Ltd acquired all the issued shares (non cum. div.) of small Ltd for $750 000. At that date, the equity of small Ltd was recorded at:                                                 Share capital                       $350,000                                                 Reserves                               150,000                                                 Retained earnings              100 000 On 1 January 2020, the records of small Ltd also showed that the carrying value of the land is $40,000 with a fair value of $50,000 . Further small Ltd had a dividend payable...
In the year ended 30 June 2019, Jane Ltd acquired all of the issued shares of...
In the year ended 30 June 2019, Jane Ltd acquired all of the issued shares of Thomas Ltd for $231 300 on a-cum-div. basis. Information about the two companies at 1 July 2019 included the following. The equity of Thomas Ltd at 1 July 2019 consisted of $144 000 share capital and $36 000 retained earnings. Included in the assets and liabilities recorded by Thomas Ltd at 1 July 2019 were goodwill of $5400 and dividend payable of $4500. On...
Selene Ltd is a major Australian manufacturer of women’s clothing. Selene Ltd acquired on 1 July...
Selene Ltd is a major Australian manufacturer of women’s clothing. Selene Ltd acquired on 1 July 2016 all the issued shares (cum-div.) of Marcus Ltd, a competitor, for $330 000. At this date, the equity of Marcus Ltd was as follows: SHARE CAPITAL $200,000 RETAINED EARNINGS $50,000 GENERAL RESERVE $20,000 All the identifiable assets and liabilities of Marcus Ltd were recorded at amounts equal to their fair values except for the following: Carrying Amount Fair Value Plant (cost $220,000) $180,000...
On 1 July 2017, Max Ltd acquired 90% all the issued shares of Jay Ltd for...
On 1 July 2017, Max Ltd acquired 90% all the issued shares of Jay Ltd for $240 000. At this date the equity of Jay Ltd consisted of Share capital of $80 000, Retained earnings of $60 000, and General Reserve of $40 000. All the identifiable assets and liabilities of Jay Ltd were recorded at amounts equal to fair value. On 30/6/2019 the equity accounts consisted of Share capital of $80 000, Retained earnings of $70 000, and General...
On 1 July 2017, Max Ltd acquired 90% all the issued shares of Jay Ltd for...
On 1 July 2017, Max Ltd acquired 90% all the issued shares of Jay Ltd for $240 000. At this date the equity of Jay Ltd consisted of Share capital of $80 000, Retained earnings of $60 000, and General Reserve of $40 000. All the identifiable assets and liabilities of Jay Ltd were recorded at amounts equal to fair value. On 30/6/2019 the equity accounts consisted of Share capital of $80 000, Retained earnings of $70 000, and General...
On 1 July 2022, Dean Ltd acquired the remaining 80% of the issued shares of Lewis...
On 1 July 2022, Dean Ltd acquired the remaining 80% of the issued shares of Lewis Ltd for shares in Dean Ltd with a fair value of $1 000 000. At that date, the financial statements of Lewis Ltd showed the following information. All the assets and liabilities of Lewis Ltd were recorded at amounts equal to their fair values at the acquisition date, except some equipment recorded at $50 000 below its fair value with a related accumulated depreciation...
On 1 July 2019, Alpha Ltd acquired 80% of the shares (ex div.) of Beta Ltd...
On 1 July 2019, Alpha Ltd acquired 80% of the shares (ex div.) of Beta Ltd for $285 000. The NCI owns the remaining 20% of the shares in Beta Ltd. At this date the shareholders’ equity of Suburb Ltd consisted of: Share capital $150 000 Retained earnings 75 000 General reserve 60 000 At this date, all the identifiable assets and liabilities of Suburb Ltd were recorded at amounts equal to their fair values except for the following: Carrying...
Q) Bush Ltd acquired all the shares of Beach Ltd on 1 July 2018. Due diligence...
Q) Bush Ltd acquired all the shares of Beach Ltd on 1 July 2018. Due diligence work conducted by Bush Ltd revealed that all the assets and liabilities of Beach Ltd were carried at fair value at the date of acquisition, except for a contingent liability that has been assessed as a present obligation having a fair value of $80,000. The contingent liability was settled by Beach Ltd for $90,000 on 1 July 2019. Which of the following consolidation adjusting...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT