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ACCT 401 Assignment Deadline is Sunday 2 July 2017 Submit hard copy in the class on Sunday 2 July 2017 Below are the Balance Sheets

ACCT 401 Assignment Deadline is Sunday 2 July 2017

Submit hard copy in the class on Sunday 2 July 2017

Below are the Balance Sheets of Alpha, Beta and Gamma Ltd for the year to 31 December 2007

Alpha Beta Gamma

Plant Assets 450 80 50

Investment in:

Beta 300 - -

Gamma 153

Inventory 197 110 50

A/R 180 95 30

Cash 50 63 40

Total Assets 1330 348 170

A/P 200 40 14

Share capital 700 200 100

Retained earnings 430 108 56

Total liabilities and equity 1330 348 170

Notes:

i) Alpha bought 75% of the share capital of Beta on 1/1/2006 when Betas retained earnings were 60

ii) Alpha bought 80% of the share capital of Gamma on 1/1/2007 when Gammas retained earnings were 32.

iii) The inventory of Alpha includes inventory bought from Beta for 50. Beta sold this inventory at cost plus a 25% mark-up. All the inventory remains unsold by Alpha.

iv) In 1/1/2007, Alpha sold a plant asset to Beta for 80. It had originally purchased it in 2001 for 100. It used straight-line depreciation based on a life of ten years (including full year depreciation in year of purchase).Beta depreciates this asset over its remaining life using straight line method.

v) The A/R of Alpha includes 10due for Beta. Beta paid back this amount on 22 December 2007, but Alpha has not entered this into its accounts yet.

v) The goodwill on the acquisition of Gamma has been impaired by an estimated 50% in 2007.

Required:

(a) Prepare the Group Consolidated Balance Sheet for the year to 31 December 2007

(b) Record all the necessary Journal entries in the parent company

(c) Record all the necessary worksheet entries required to prepare the consolidated statement of financial position.

A

B

G

group

Plant assets

450

80

50

Investment

300+153

Goodwill

Inventory

197

110

50

A/R

180

95

30

Cash

50

63

40

Total

1330

348

170

A/P

200

40

14

NCI

Share Cap

700

200

100

RE

430

108

56

Total

1330

348

170

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