ADVANCED ACCOUNTING

ARGENT

Question B: Consolidated Financial Statements The statements of financial position of Rose plc and Hill plc as at 31 December 2018 are as follows: Rose plc Hill plc Assets Non Current Assets at cost 550,000 225,000 Depreciation 220,000 67.500 330.000 157,500 Investment in Hill plc 187,500 Current Assets Inventories Trade Receivables Current Account-Hill Bank 67,500 90,000 225,000 180,000 22,500 36,000 463,500 Current Liabilities Current Account-Rose Trade Payables Taxation 283,500 31.500 315.000 148,500 666,000 18.000 175,500 22,500 40,500 13.500 76.500 99.000 256,500 Net Current Assets Net Assets Equity Share Capital Retained Earnings 441,000 225,000 666,000 121,500 135.000 256,550 Total Equity Required: 666,000 256,550 Required: 1. Calculate the amount of goodwill. 2. Calculate the unrealized profit, and record the required journal entry. 3. Determine the eliminated inter-company transaction and record the required. journal entry. 4. Calculate the Non-controlling Interest. 5. Calculate the amount of the consolidated Equity section. 6. Calculate the amount of inventories that should be appear in the consiladated statement of financial position. Farthotel Question B: Consolidated Financial Statements The statements of financial position of Rose plc and Hill plc as at 31 December 2018 are as follows: Rose plc Hill plc Assets Non Current Assets at cost 550,000 225,000 Depreciation 220,000 67.500 330.000 157,500 Investment in Hill plc 187,500 Current Assets Inventories Trade Receivables Current Account-Hill Bank 67,500 90,000 225,000 180,000 22,500 36,000 463,500 Current Liabilities Current Account-Rose Trade Payables Taxation 283,500 31.500 315.000 148,500 666,000 18.000 175,500 22,500 40,500 13.500 76.500 99.000 256,500 Net Current Assets Net Assets Equity Share Capital Retained Earnings 441,000 225,000 666,000 121,500 135.000 256,550 Total Equity Required: 666,000 256,550 Required: 1. Calculate the amount of goodwill. 2. Calculate the unrealized profit, and record the required journal entry. 3. Determine the eliminated inter-company transaction and record the required. journal entry. 4. Calculate the Non-controlling Interest. 5. Calculate the amount of the consolidated Equity section. 6. Calculate the amount of inventories that should be appear in the consiladated statement of financial position. Farthotel