Question
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.
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Plant assets | 450 | 80 | 50 |
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Investment | 300+153 |
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Goodwill |
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Inventory | 197 | 110 | 50 |
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A/R | 180 | 95 | 30 |
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Cash | 50 | 63 | 40 |
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Total | 1330 | 348 | 170 |
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A/P | 200 | 40 | 14 |
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NCI |
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Share Cap | 700 | 200 | 100 |
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RE | 430 | 108 | 56 |
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Total | 1330 | 348 | 170 |
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