{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-29T02:34:01-04:00", "answer_date": "2024-06-29 02:34:01", "is_docs_available": null, "is_excel_available": null, "is_pdf_available": null, "count_file_available": 0, "main_page": "student_question_view", "question_id": "4449725", "url": "\/study-help\/questions\/a-b-c-d-e-f-g-adjustments-alpha-beta-4449725", "question_creation_date_js": "2024-06-29T02:34:01-04:00", "question_creation_date": "Jun 29, 2024 02:34 AM", "meta_title": "[Solved] A B C D E F G Adjustments Alpha Beta DR R | SolutionInn", "meta_description": "Answer of - A B C D E F G Adjustments Alpha Beta DR Ref CR Group WNA 4,800 2,000 Revenue UI A (800) Cost of sales 2,960) Gross pro | SolutionInn", "meta_keywords": "c,adjustments,alpha,beta,dr,ref,cr,group,wna,4,800,2,000,revenue", "question_title_h1": "A B C D E F G Adjustments Alpha Beta DR Ref CR Group WNA 4,800 2,000 Revenue UI A (800) Cost of sales 2,960)", "question_title": "A B C D E F G Adjustments Alpha Beta DR Ref", "question_title_for_js_snippet": "A B C D E F G Adjustments Alpha Beta DR Ref CR Group WNA 4,800 2,000 Revenue UI A (800) Cost of sales 2,960) Gross profit 1,840 1,200 Dividend Revenue 800 Depreciation Expense 600) 100) 10 General admin expenses 600) 11 Profit before tax 2,040 500 12 (612) 150) 13 Income tax expense 14 15 Net profit after tax 1,428 350 16 Profit attributable to NCI 17 Profit attributable to the parent 18 1,522 2,200 19 20 Retained earnings (O B) 21 22 23 24 500) Dividends paid 700) 25 26 Retained Earnings (E B) 2,250 2,050 27 12,000 4,000 Common Shares 28 29 30 Consolidation Revaluation Surplus 31 32 Equity attributable to NCI 33 Payables 400 200 34 Loans 1,500 300 35 Total equities 16,150 5,550 36 Cash 500 300 37 Receivables 1,600 300 38 Inventory 3,550 2,000 39 Deferred tax assets 500 100 40 41 42 Equipment (net) 2,000 1,900 43 44 Land 3,000 1,950 45 Investment in Beta 5,000 46 47 48 49 Total Assets 16,150 6,550 50A B C D Dr Cr 1 FV Increment 1 (1) Fair Value Increment of Land Inventory 2 Acquisition Elimination (Ignore NCI) 2 LD CO 10 11 12 13 (2) Eliminating investment in subsidiary against 14 parent's share of equity 15 3 Unrealised profit in opening inventory 16 3 17 18 19 3) Eliminating unrealised gain in opening 20 inventor 21 4 Unrealised loss in closing inventory 22 4 23 24 25 26 (4) Eliminating unrealised loss in closing 27 inventon 28 5 Unrealised profit on sale of non current asset 29 5 30 31 32 (5) Eliminating the unrealised gain on sale of 33 non current asset 34 6 Excess Depreciation 35 6 36 37 38 39 40 (6) Adjusting for excess depreciation 41 42 7 Rental Service 43 7 44 45 46 47 (7) Eliminating intra group service revenue 48 8 Dividend 49 8 50 51 (8) Eliminating Intra Group Dividends 52 53 9 Impairment of Goodwill 54 9 55 56 (9) Adjust the value of goodwill with impairment 57 10 NC 58 10 Share Capital 800 59 Consolidation Revaluation Surplus 50 60 Retained Earnings (O B) 336 61 NCI Share of Profits 54 62 Dividends 100 63 NCI Share of Equity 1,140 64 (10) Entry to record NCI 65mbWNH 10 11 12 13 14 15 16 17 NCI Schedule Retained prots (0 3) (from worksheet) Aftertax unrealised prot in opening inventory Aftertax unrealised prot on sale of equipment Aftertax excess depreciation on equipment Adjusted opening retained earnings Net prot (after tax) (from worksheet) Aftertax unrealised prot in opening inventory Aftertax unrealised prot in closing inventory Aftertax excess depreciation on equipment Dividends paid Adjusted Closing retained prots Adjusted prot Share capital (from worksheet) Share of Hi increments NCI share of equity B c Sub Ltd NCI (20 ) 120 I N o o 350 DJ (240 12 4,000 300 IErepare Consolidated Financial Statements In this part, you are given the relevant information about a hypothetic case of business combination between Alpha Inc and Beta Q OnJanuary 1, 2021, Alpha Inc ('Alpha') acquired control over Beta Inc ('Beta') by acquiring 80 of the shares of Beta for $5,000 On the date of the acquisition, the equity in Beta comprised the following Shareholders'Equig 3' Common Shares Retained Earnings This equity reected the fair value of all the assets and liabilities of Beta, with t1 1 ex c ept i9 n o f land, which had a fair value of $250 in excess of the carrying amounts, respectively The following additional information is available 0 During the year ended December 31, 2022, Beta sold inventory to Alpha at a price of $600 This inventory had cost Beta $460 As of December 31, 2022, Alpha still had 45 of the inventory in stock ' During the year ended December 31, 2023, Alpha sold inventory to Beta at a prot of $400 This inventory had cost Alpha $1,000 As of December 31, 2023, Beta had all these inventories in stock On January 1, 2022, Beta sold an equipment to Alpha at a prot of $1,000 Alpha has since depreciated the equipment on a straight line basis assuming a useful life of ve years ' During the year ended December 31, 2023, Beta rented ofce space om Alpha at a cost of $600 As of December 31, 2023, Beta still owed $100 of the rent During the year ended December 31, 2023, Beta declared and paid a dividend of $500 ' The impairment tests on cash generating units at the end of 2021, 2022 and 2023 revealed that the recoverable amount of goodwill is $450, $350, and $750 respectively Assume that the corporate tax rate is 40 and impairment loss on goodwill is not tax deductible 0 Both companies have December 31 year end The nancial statements of Alpha and Beta for the scal year ended December 31, 20221 are provided in the Excel spreadsheet Assume that Beta is Alpha' 5 only m and the NCI equity is valued under Identiable Net Asset (INA) method Please use the information above and data provided in the attached Excel sheet to prepare the consolidated Income Statement for the scal year ended on December 31, 2023, consolidated Statement of Retained Earnings and Balance Sheet as a t December 31, 2023", "question_description": "
\"image\"image\"image\"image<\/div><\/div><\/div><\/figure> A B C D E F G Adjustments Alpha Beta DR Ref CR Group WNA 4,800 2,000 Revenue UI A (800) Cost of sales 2,960) Gross profit 1,840 1,200 Dividend Revenue 800 Depreciation Expense 600) 100) 10 General & admin expenses 600) 11 Profit before tax 2,040 500 12 (612) 150) 13 Income tax expense 14 15 Net profit after tax 1,428 350 16 Profit attributable to NCI 17 Profit attributable to the parent 18 1,522 2,200 19 20 Retained earnings (O\/B) 21 22 23 24 500) Dividends paid 700) 25 26 Retained Earnings (E\/B) 2,250 2,050 27 12,000 4,000 Common Shares 28 29 30 Consolidation Revaluation Surplus 31 32 Equity attributable to NCI 33 Payables 400 200 34 Loans 1,500 300 35 Total equities 16,150 5,550 36 Cash 500 300 37 Receivables 1,600 300 38 Inventory 3,550 2,000 39 Deferred tax assets 500 100 40 41 42 Equipment (net) 2,000 1,900 43 44 Land 3,000 1,950 45 Investment in Beta 5,000 46 47 48 49 Total Assets 16,150 6,550 50A B C D Dr Cr 1 FV Increment 1 (1) Fair Value Increment of Land & Inventory 2 Acquisition Elimination (Ignore NCI) 2 LD CO 10 11 12 13 (2) Eliminating investment in subsidiary against 14 parent's share of equity 15 3 Unrealised profit in opening inventory 16 3 17 18 19 [3) Eliminating unrealised gain in opening 20 inventor 21 4 Unrealised loss in closing inventory 22 4 23 24 25 26 (4) Eliminating unrealised loss in closing 27 inventon 28 5 Unrealised profit on sale of non-current asset 29 5 30 31 32 (5) Eliminating the unrealised gain on sale of 33 non-current asset 34 6 Excess Depreciation 35 6 36 37 38 39 40 (6) Adjusting for excess depreciation 41 42 7 Rental Service 43 7 44 45 46 47 (7) Eliminating intra-group service revenue 48 8 Dividend 49 8 50 51 (8) Eliminating Intra-Group Dividends 52 53 9 Impairment of Goodwill 54 9 55 56 (9) Adjust the value of goodwill with impairment 57 10 NC 58 10 Share Capital 800 59 Consolidation Revaluation Surplus 50 60 Retained Earnings (O\/B) 336 61 NCI Share of Profits 54 62 Dividends 100 63 NCI Share of Equity 1,140 64 (10) Entry to record NCI 65mbWNH 10 11 12 13 14 15 16 17 NCI Schedule Retained prots (0\/3) (from worksheet) Aftertax unrealised prot in opening inventory Aftertax unrealised prot on sale of equipment Aftertax excess depreciation on equipment Adjusted opening retained earnings Net prot (after tax) (from worksheet) Aftertax unrealised prot in opening inventory Aftertax unrealised prot in closing inventory Aftertax excess depreciation on equipment Dividends paid Adjusted Closing retained prots Adjusted prot Share capital (from worksheet) Share of Hi increments NCI share of equity B c Sub Ltd NCI (20%) 120 I\\\" N o o 350 DJ (240 12 4,000 300 IErepare Consolidated Financial Statements In this part, you are given the relevant information about a hypothetic case of business combination between Alpha Inc. and Beta Q OnJanuary 1, 2021, Alpha Inc. ('Alpha') acquired control over Beta Inc. ('Beta') by acquiring 80% of the shares of Beta for $5,000. On the date of the acquisition, the equity in Beta comprised the following: Shareholders'Equig: 3' Common Shares Retained Earnings This equity reected the fair value of all the assets and liabilities of Beta, with t1_1_ex_c_ept_i9_n _o_f land, which had a fair value of $250 in excess of the carrying amounts, respectively. The following additional information is available: 0 During the year ended December 31, 2022, Beta sold inventory to Alpha at a price of $600. This inventory had cost Beta $460. As of December 31, 2022, Alpha still had 45% of the inventory in stock. ' During the year ended December 31, 2023, Alpha sold inventory to Beta at a prot of $400. This inventory had cost Alpha $1,000. As of December 31, 2023, Beta had all these inventories in stock. On January 1, 2022, Beta sold an equipment to Alpha at a prot of $1,000. Alpha has since depreciated the equipment on a straight-line basis assuming a useful life of ve years. ' During the year ended December 31, 2023, Beta rented ofce space om Alpha at a cost of $600. As of December 31, 2023, Beta still owed $100 of the rent. During the year ended December 31, 2023, Beta declared and paid a dividend of $500. ' The impairment tests on cash-generating units at the end of 2021, 2022 and 2023 revealed that the recoverable amount of goodwill is $450, $350, and $750 respectively. Assume that the corporate tax rate is 40% and impairment loss on goodwill is not tax deductible. 0 Both companies have December 31 year end. The nancial statements of Alpha and Beta for the scal year ended December 31, 20221 are provided in the Excel spreadsheet. Assume that Beta is Alpha' 5 only m and the NCI equity is valued under Identiable Net Asset (INA) method. Please use the information above and data provided in the attached Excel sheet to prepare the consolidated Income Statement for the scal year ended on December 31, 2023, consolidated Statement of Retained Earnings and Balance Sheet as a_t December 31, 2023", "transcribed_text": "", "related_book": { "title": "Accounting Principles", "isbn": "1119491630, 978-1119491637, 978-0470534793", "edition": "10th Edition", "authors": "Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/54.jpg", "uri": "\/textbooks\/accounting-principles-10th-edition-54", "see_more_uri": "" }, "free_related_book": { "isbn": "0955382726", "uri": "\/textbooks\/redbreast-the-robin-in-life-and-literature-1st-edition-9780955382727", "name": "Redbreast The Robin In Life And Literature", "edition": "1st Edition" }, "question_posted": "2024-06-29 02:34:01", "see_more_questions_link": "\/study-help\/questions\/business-corporate-finance-2020-July-01", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/sketch-the-region-and-find-its-area-if-the-area", "description": "Sketch the region and find its area (if the area is finite).", "stars": 3.5 }, { "url": "\/study-help\/psychology\/what-do-you-know-of-my-the-interviewers-research-program-1980588", "description": "What do you know of my (the interviewers) research program?", "stars": 3.5 }, { "url": "\/illustrate-the-effects-on-the-accounts-and-financial", "description": "Illustrate the effects on the accounts and financial statements of the following transactions in the accounts of Food Unlimited Company, a restaurant supply company that uses the allowance method of...", "stars": 3 }, { "url": "\/study-help\/questions\/your-80yearold-uncle-has-an-estate-valued-at-over-25-9863416", "description": "Your 80-year-old uncle has an estate valued at over $25 million and asked for your advice regarding how to make sure that each of his heirs receive certain assets and that estate taxes are minimized...", "stars": 3 }, { "url": "\/study-help\/questions\/the-data-for-the-number-employed-at-several-famous-it-562527", "description": "The data for the number employed at several famous IT companies is maintained in the COMPANY table. Write a query to print the \/Ds of the companies that have more than 10000 employees, in ascending...", "stars": 3 }, { "url": "\/study-help\/questions\/4-the-pizza-market-in-dfw-is-horizontally-differentiated-stores-3650390", "description": "4. The pizza market in DFW is horizontally differentiated. Stores specialize in a single type of pizza and an equal number specialize in each type. With some consumers preferring deep dish (Type A)...", "stars": 3 }, { "url": "\/study-help\/questions\/neo-banknot-physical-only-internet-banking-has-a-cyber-threat-1004434", "description": "Neo bank(not physical, only internet banking) has a cyber threat about fake ID card issue. Q1. What is high level plan of possible options in terms of focus and investment options as part of both...", "stars": 3 }, { "url": "\/study-help\/questions\/question-1-hypothesis-for-an-ecommerce-company-an-instant-messaging-1008643", "description": "Question 1: Hypothesis: For an E-commerce company, an instant messaging mobile application is required for day-to-day communications. For a given business use case, derive the scope using concept...", "stars": 3 }, { "url": "\/study-help\/questions\/b-figure-q2-b-shows-the-composite-crosssectional-area-of-1024221", "description": "(b) Figure Q2 (b) shows the composite cross-sectional area of the C-shape beam. i. Determine the centroid of the beam's cross-sectional area. ii. Determine the moment of inertia of the area about the...", "stars": 3 }, { "url": "\/study-help\/questions\/your-company-has-an-onpremises-active-directory-domain-named-contosocom-999685", "description": "Your company has an on-premises Active Directory domain named contoso.com and a Microsoft 365 E5 subscription. You need to implement Microsoft Entra Connect cloud sync. What should you create first?...", "stars": 3 }, { "url": "\/study-help\/questions\/using-the-method-analysis-described-in-the-textbook-defend-the-1005173", "description": "Using the method analysis described in the textbook, defend the new change implementation process and the rationale for the change of method.", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/marxproduces-a-hard-disk-drive-that-sells-for-175per-unit-4449724", "next": "\/study-help\/questions\/17-which-one-did-you-enjoy-exploring-the-most-and-4449726" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": "A B C D E F G Adjustments Alpha Beta DR Ref", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/a-b-c-d-e-f-g-adjustments-alpha-beta-4449725" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } }" } }