300 Consolidation Exercise Description: Stubbs acquires all the shares in Billa on 30 June 2014. The financial statements for Stubbs and Billa at 30 June 2015 (one year after the acquisition are provided below) Reconciliation of opening and closing retained earnings (June 2015) Stubbs Billa (C000) (000) Sales revenue 2 000 610 Cost of goods sold (800) (240) Other expenses (300) (70) -Profit 900 Retained earnings opening balance, 31/06/2014 1 100 500 Retained earnings closing balance, 31/06/2015 2 000 800 Statements of financial position (June 2015) Stubbs Billa (6000) (COO) Land 1 200 750 Plant 2 600 Acc Deprec - plant (600) (280) Investment in Billa 1 100 Accounts Receivable 450 250 Cash 150 280 Total Assets 4900 1000 2 000 1 100 350 2 000 800 1 100 700 Equity share capital Retained Earnings Loans Accounts Payable Total Liabilities Total Liab & Shareh Eq 700 150 1 800 850 2 000 4900 Stubbs acquires Billa on 1 July 2014 for 1,1 million in cash. The directors of Stubbs consider that, in the year to 30 June 2015, the value of goodwill has been impaired by an amount of 20 000. There are no intragroup transactions and the tax rate is 30 %. On the date at which Stubbs acquires Billa, the carrying value and the fair value of the assets of Billa are: . Fair value (C000) Carrying value (000) Cash 150 We use this table 150 200 200 750 800 Accounts receivable Land Plant (cost of 1 million, acc depr of 200 000) 800 900 1900 2050 . . No revaluations are undertaken in Billa's financial statements before consolidation. At the date of acquisition of Billa, Billa's liabilities amount to 1 050 000 and there are no contingent liabilities. The plant in Billa is expected to have a remaining useful life of ten years from 30 June 2014, and no residual value. . Required: set up consolidated statements for the year ending June 2015 doing both the consolidation worksheet and the consolidation journal. 300 Consolidation Exercise Description: Stubbs acquires all the shares in Billa on 30 June 2014. The financial statements for Stubbs and Billa at 30 June 2015 (one year after the acquisition are provided below) Reconciliation of opening and closing retained earnings (June 2015) Stubbs Billa (C000) (000) Sales revenue 2 000 610 Cost of goods sold (800) (240) Other expenses (300) (70) -Profit 900 Retained earnings opening balance, 31/06/2014 1 100 500 Retained earnings closing balance, 31/06/2015 2 000 800 Statements of financial position (June 2015) Stubbs Billa (6000) (COO) Land 1 200 750 Plant 2 600 Acc Deprec - plant (600) (280) Investment in Billa 1 100 Accounts Receivable 450 250 Cash 150 280 Total Assets 4900 1000 2 000 1 100 350 2 000 800 1 100 700 Equity share capital Retained Earnings Loans Accounts Payable Total Liabilities Total Liab & Shareh Eq 700 150 1 800 850 2 000 4900 Stubbs acquires Billa on 1 July 2014 for 1,1 million in cash. The directors of Stubbs consider that, in the year to 30 June 2015, the value of goodwill has been impaired by an amount of 20 000. There are no intragroup transactions and the tax rate is 30 %. On the date at which Stubbs acquires Billa, the carrying value and the fair value of the assets of Billa are: . Fair value (C000) Carrying value (000) Cash 150 We use this table 150 200 200 750 800 Accounts receivable Land Plant (cost of 1 million, acc depr of 200 000) 800 900 1900 2050 . . No revaluations are undertaken in Billa's financial statements before consolidation. At the date of acquisition of Billa, Billa's liabilities amount to 1 050 000 and there are no contingent liabilities. The plant in Billa is expected to have a remaining useful life of ten years from 30 June 2014, and no residual value. . Required: set up consolidated statements for the year ending June 2015 doing both the consolidation worksheet and the consolidation journal