Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

8 14 MARKS Grandview Ltd acquired 100% of the issued capital of Electro Ltd on 1 July 2021 for $110,000. At that date the shareholders'

8 14 MARKS Grandview Ltd acquired 100% of the issued capital of Electro Ltd on 1 July 2021 for $110,000. At that date the shareholders' equity of Electro Ltd was: Share Capital $60,000 General Reserves, 15,000 Retained Earnings 16,000 During the year ended 30 June 2021: Electro Ltd sold goods to Grandview Ltd for 70,000 and unrealised profit in closing inventory of Grandview Ltd was $6,000. During the year Electro Ltd paid an interim dividend of $4,000 and at 30 June 2021 they provided for a final dividend of $6,000. No impairment of goodwill occurred. Required: (a) Journal entries to eliminate the investment in Electro Ltd by Grandview Ltd. (b) Journal entries to eliminate any other inter-company transactions. Eding

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions