Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can someone solve this please * Question 3 On 30 September 20X0 Gold plc acquired 75% of the equity shares, 30% of the preferred shares

image text in transcribed

image text in transcribed

can someone solve this please

* Question 3 On 30 September 20X0 Gold plc acquired 75% of the equity shares, 30% of the preferred shares and 20% of the bonds in Silver plc and gained control. The balance of retained earnings on 30 September 20x0 was 16,000. The fair value of the land owned by Silver was 3,000 above book value. No adjust- ment has so far been made for this revaluation. The statements of financial position of Gold and Silver at 31 December 20XI were as follows: Gold Silver 108,550 82,300 46,000 ASSETS Property, plant and equipment (including land) Investment in Silver Current assets Inventory Silver current account Bond interest receivable Other current assets Total assets 10,000 23,200 20,000 175 5,000 176,675 7,500 126,050 EQUITY AND LIABILITIES Equity share capital Preferred shares Retained earnings 60,000 10,000 75,000 145,000 12,500 27,600 20,000 21,200 68,800 17,500 20,000 Non-current liabilities - bonds Current liabilities Gold current account Bond interest payable Other current liabilities Total equity and liabilities 875 625 18.550 176,675 18.875 126.050 Notes: | The recoverable amount for purposes of calculating the impairment of goodwill is 50,040. 2 During the year Gold sold some of its inventory to Silver for 3,000, which represented cost plus a markup of 25%. Half of these goods are still in the inventory of Silver at 31.12.20X1. 3. There is no depreciation of land. 4 There has been no movement on share capital since the acquisition. 5 Method I is to be used to compute the non-controlling interest. Required: Prepare a consolidated statement of financial position as at 31 December 20X1. * Question 3 On 30 September 20X0 Gold plc acquired 75% of the equity shares, 30% of the preferred shares and 20% of the bonds in Silver plc and gained control. The balance of retained earnings on 30 September 20x0 was 16,000. The fair value of the land owned by Silver was 3,000 above book value. No adjust- ment has so far been made for this revaluation. The statements of financial position of Gold and Silver at 31 December 20XI were as follows: Gold Silver 108,550 82,300 46,000 ASSETS Property, plant and equipment (including land) Investment in Silver Current assets Inventory Silver current account Bond interest receivable Other current assets Total assets 10,000 23,200 20,000 175 5,000 176,675 7,500 126,050 EQUITY AND LIABILITIES Equity share capital Preferred shares Retained earnings 60,000 10,000 75,000 145,000 12,500 27,600 20,000 21,200 68,800 17,500 20,000 Non-current liabilities - bonds Current liabilities Gold current account Bond interest payable Other current liabilities Total equity and liabilities 875 625 18.550 176,675 18.875 126.050 Notes: | The recoverable amount for purposes of calculating the impairment of goodwill is 50,040. 2 During the year Gold sold some of its inventory to Silver for 3,000, which represented cost plus a markup of 25%. Half of these goods are still in the inventory of Silver at 31.12.20X1. 3. There is no depreciation of land. 4 There has been no movement on share capital since the acquisition. 5 Method I is to be used to compute the non-controlling interest. Required: Prepare a consolidated statement of financial position as at 31 December 20X1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions