Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

At acquisition date, a wholly owned subsidiary had the following equity items. Retained earnings $28 000 Share capital $60000 In the year following the acquisition,

At acquisition date, a wholly owned subsidiary had the following equity items.

Retained earnings

$28 000

Share capital

$60000

In the year following the acquisition, the subsidiary transferred $20000 from pre-acquisition retained earnings to a general reserve account. At the reporting date following the reserve transfer, which of the following consolidation adjustments is needed?

i. DrRetained earnings$20000

CrGeneral reserve$20000

ii. DrGeneral reserve$20000

CrShares insubsidiary$20000

iii. DrShares in subsidiary$20000

CrRetainedearnings$20000

iv. DrGeneral reserve$20000

CrTransfer to general reserve$20000

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

Recommended Textbook for

Practicing Financial Planning

Authors: Sid Mittra, Anandi P Sahu, Brian Fischer

12th Edition

9386042851, 9789386042859

More Books

Students also viewed these Accounting questions

Question

Did the researcher seek out those who are silent and marginalized?

Answered: 1 week ago

Question

1. Maintain my own perspective and my opinions

Answered: 1 week ago

Question

2. What do the others in the network want to achieve?

Answered: 1 week ago