BrightStar Ltd. has the following balance sheets for 31 December 2023. Prepare the consolidated balance sheet for
Question:
BrightStar Ltd. has the following balance sheets for 31 December 2023. Prepare the consolidated balance sheet for 31 December 2023.
BrightStar Ltd Balance Sheet as at 31 December 2023
Assets | Amount |
Investment in subsidiary (85,000 shares bought 31.12.2022) | $200,000 |
Fixed assets | $275,000 |
Current assets | $75,000 |
Total | $550,000 |
Liabilities and Equity | Amount |
Share capital | $380,000 |
Profit and loss account (31.12.2022) | $60,000 |
Add Profit for 2023 | $110,000 |
Total | $550,000 |
NovaWave Ltd Balance Sheet as at 31 December 2023
Assets | Amount |
Fixed assets | $110,000 |
Current assets | $70,000 |
Total | $180,000 |
Liabilities and Equity | Amount |
Share capital | $90,000 |
Profit and loss account (31.12.2022) | $10,000 |
Add Profit for 2023 | $80,000 |
Total | $180,000 |
Requirement: Prepare the consolidated balance sheet for BrightStar Ltd. and its subsidiary as at 31 December 2023. Determine the equity attributable to shareholders of the parent company.
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann