The financial statements of Jewel Ltd and its subsidiary Opal Ltd are shown below: Income Statement...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The financial statements of Jewel Ltd and its subsidiary Opal Ltd are shown below: Income Statement and Partial Statement of Changes in Equity For the Year Ended 31 December 20x2 Sales Operating profit. Dividend income from Opal Profit before tax Tax Profit after tax Retained earnings, 1 January 20x2. Dividends declared Retained earnings, 31 December 20x2 Share capital Retained earnings Shareholders' equity Statement of Financial Position As at 31 December 20x2 Investment in Opal, cost Other net atsets Net assets Share capital Retained earnings. br Jewel Ltd $2,350,000 2.753,400 $5,103,400 $ 450,000 4.653,400 $5.103.400 Jewel Ltd $10,000,000 Shareholders equity Purchase consideration paid by Jewel Ltd. Percentage ownership by Jowel Ltd in Opal Ltd Fair value of identifiable not assess was close to the book value at acquisition date $1,000,000 23,400 $ 1,023.400 (220,000) $ 803,400 2,050,000 (100,000) $ 2,753,400 Opal Ltd $300,000 305.550 $605,550 $605.550 $605.550 Opal Ltd $3.300.000 $ 160,000 Additional information: (a) Jenel Ltd acquired the interest in Opal Ltd on 1 January 2010 when the shareholders equity of Opal was as follows: $100,000 120.000 420,000 450,000 80% $ 160,000 (35.200) $ 124.800 210,000 (29.250) $ 305,550 (b) Goodwill and non-controlling interests Non-controlling interests are recognized at fair value on acquisition date Fair value of non-controlling interests as at 1 January 20x0 $112.500 Goodwill impairment is as follows: $50,000 in previous years and $40.000 in the current year. (c) Intercompany sales Intercompany sales made by Jewel to Opal during 20x2. Profit on intercompany sales included in Opal's inventory as at 31 December 20x2. Tax expense on profit on intercompany sales has been properly charged to the income statement of jewel during 20x2 (d) Taxation rate was 20%. Tax effects are to be considered wherever appropriate. $100,000 30.000 Required: 1. Prepare consolidation adjustment and elimination entries for the year ended 31 December 20x2. Show all relevant workings. Worksheets are not required. 2. Perform an analytical check on non-controlling interests as at 31 December 20x2. 3. Perform an analytical check on consolidated retained earnings as at 31 December 20x2. The financial statements of Jewel Ltd and its subsidiary Opal Ltd are shown below: Income Statement and Partial Statement of Changes in Equity For the Year Ended 31 December 20x2 Sales Operating profit. Dividend income from Opal Profit before tax Tax Profit after tax Retained earnings, 1 January 20x2. Dividends declared Retained earnings, 31 December 20x2 Share capital Retained earnings Shareholders' equity Statement of Financial Position As at 31 December 20x2 Investment in Opal, cost Other net atsets Net assets Share capital Retained earnings. br Jewel Ltd $2,350,000 2.753,400 $5,103,400 $ 450,000 4.653,400 $5.103.400 Jewel Ltd $10,000,000 Shareholders equity Purchase consideration paid by Jewel Ltd. Percentage ownership by Jowel Ltd in Opal Ltd Fair value of identifiable not assess was close to the book value at acquisition date $1,000,000 23,400 $ 1,023.400 (220,000) $ 803,400 2,050,000 (100,000) $ 2,753,400 Opal Ltd $300,000 305.550 $605,550 $605.550 $605.550 Opal Ltd $3.300.000 $ 160,000 Additional information: (a) Jenel Ltd acquired the interest in Opal Ltd on 1 January 2010 when the shareholders equity of Opal was as follows: $100,000 120.000 420,000 450,000 80% $ 160,000 (35.200) $ 124.800 210,000 (29.250) $ 305,550 (b) Goodwill and non-controlling interests Non-controlling interests are recognized at fair value on acquisition date Fair value of non-controlling interests as at 1 January 20x0 $112.500 Goodwill impairment is as follows: $50,000 in previous years and $40.000 in the current year. (c) Intercompany sales Intercompany sales made by Jewel to Opal during 20x2. Profit on intercompany sales included in Opal's inventory as at 31 December 20x2. Tax expense on profit on intercompany sales has been properly charged to the income statement of jewel during 20x2 (d) Taxation rate was 20%. Tax effects are to be considered wherever appropriate. $100,000 30.000 Required: 1. Prepare consolidation adjustment and elimination entries for the year ended 31 December 20x2. Show all relevant workings. Worksheets are not required. 2. Perform an analytical check on non-controlling interests as at 31 December 20x2. 3. Perform an analytical check on consolidated retained earnings as at 31 December 20x2.
Expert Answer:
Answer rating: 100% (QA)
Journal Entries Jewel Retained Earnings NCI Sales Cost ... View the full answer
Related Book For
Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Posted Date:
Students also viewed these accounting questions
-
Monarch Products, Inc. provided the following information from its current-year trial balance. (Click the icon to view the trial balance.) Requirements Prepare a single-step income statement for the...
-
Fill in the blue cells above. How could you defer $40,000 in weekly expenses for one week in the middle of the project? Compare Figure Early - Late Weekly Weekly Cumulative Cumulative Cumulative...
-
The following are financial measures from the financial statements of Brown Buildings for the past two years: Required a. Conduct a horizontal analysis of Brown Buildings. Comment on your findings...
-
What is the Antebellum Interregional growth hypothesis?
-
Suppose the power line in the previous problem has an impulse response that may be approximated by h (t) = te atu (t), where a = 10s 1. (a) What does the shot noise on the power line look like?...
-
Determine whether each improper integral converges or diverges, and find the value of each that converges. .-1 -00 In |x| dx
-
\(\frac{a^{14}}{a^{5}}\) Simplify the expression.
-
Knott Radio Corporation is a subsidiary of Mercer Companies. Knott makes car radios that it sells to retail outlets. It purchases speakers for the radios from outside suppliers for $28 each....
-
I need to compare and contrast two related companies in which one uses U.S. accounting reporting and one that uses International accounting reporting. Part 1 : Select financial statements for two...
-
Analyze, Forecast, and Interpret Income Statement and Balance Sheet Following are the income statement and balance sheet of ADP Inc. Note: Complete the entire question using the following Excel...
-
Exhibit 9: Modeling Assumptions a. For Brookline: i. Hold the property another five years. ii. Operating expenses beginning in 2016 will grow at a 2% annual rate, independent of occupancy. iii. The...
-
In an industrial nozzle, steam is expanded from 260C and 7.00 bar absolute to 200C and 4.00 bar absolute. The heat transferred from the nozzle to the surroundings is given as 42.4 kJ/kg. The steam...
-
Kilt Company had the following information for the year: Direct materials used $110,000 Direct labor incurred (5,000 hours) $150,000 Actual manufacturing overhead incurred $166,000 Kilt Company used...
-
Hunt represents one of many African - Americans who have been wrongly convicted in the United States. In order to resolve this injustice, some people feel that the attorney - client privilege should...
-
Stuart Services Company has 58 employees, 22 of whom are assigned to Division A and 36 to Division B. Stuart incurred $357,280 of fringe benefits cost during Year 2. Required Determine the amount of...
-
Raceway Company manufactures engines. Raceway produces all the parts necessary for its engines, except for one electronic component, which is purchased from two local suppliers: Hydra International...
-
The subject matter of a work of art is what the image means or the idea that the artist is communicating visually. True False
-
In order to get an idea on current buying trends, a real estate agent collects data on 10 recent house sales in the area. Specifically, she notes the number of bedrooms in each house as follows: a....
-
Contrast the advantages and disadvantages of the direct and indirect methods of preparing the statement of cash flows. Are both methods acceptable? Which method is preferred by the FASB? Which method...
-
The stockholders?? equity section of Traylor Corporation??s balance sheet at December 31 is presented here. InstructionsFrom a review of the stockholders?? equity section, answer the following...
-
Bonnie Decker is planning to start a business. Identify for Bonnie the advantages and disadvantages of the corporate form of business organization.
-
Prepare a consolidated balance sheet from the following balance sheets of Pop Ltd and Son Ltd which were drawn up immediately after Pop Ltd had acquired the share capital of Son Ltd. Pop Balance...
-
Papa and Mamae Ltd buys 667/3 per cent of the shares in Son and Daughter Ltd. You are to draw up the consolidated balance sheet from the following balance sheets constructed immediately control had...
-
Immediately after Parental Times Ltd had acquired control of Offspring One Ltd and Offspring Two Ltd the following balance sheets were drawn up. You are to draw up a consolidated balance sheet....
Study smarter with the SolutionInn App