Consolidation question

Question 1 Complete the following task in line with organisational policy, procedures and relevant accounting standards (see handout). Livingstone Ltd acquired 80% of the issued capital of Stanley Ltd on July 1, 2018 for $138,000. At that date the shareholders' equity of Stanley Ltd was: Share capital $50,000 Retained earnings $50,000 Reserves $60,000 Additional information for the year ended June 30, 2020: Intercompany sales: Sales from Stanley Ltd to Livingstone Ltd $100,000 . The directors review the balance of goodwill each year. They agree that: For the year ended June 30, 2020 goodwill was impaired by $1,000 For the year ended June 30, 2019 goodwill is to be impaired by $1,000 . Make sure you do the dividend elimination entries - note there is only a dividend which has been declared today, so it is an outstanding liability. Using appropriate accounting treatments complete the following tasks in Excel. .) Prepare the elimination entries and NCI entries in the worksheet. Note: You will need to number each elimination in order as shown in the textbook and check for accuracy and completeness. b) Using the worksheet figures, prepare a classified balance sheet as at 30th June 2020 and income statement for the year ending 30th June 2020. c) Present the data in the income statement in visual form, e.g. diagram or chart. Consolidated Work Sheet June 30 2020 Livingstone Stanley Lid Eliminations NCI Consolidated Lid entity $000's SOOO's Dr Cr Dr Cr Sales 1,200 Less: Cost of Sales 450 90 GROSS PROFIT 750 310 Less: Expenses 200 30 350 Add: Interest revenue 30 Profit before tax 580 280 Less: Income tax expense 174 Profit after tax 106 196 Less: NCI profit share Parent members' profit Retained Earnings 366 01/07/2019 Available for appropriation 772 286 on 30/06/2020; Final dividend declared 150 Retained earnings 622 256 30/06/2020 Share capital 400 50 Reserves 90 90 Dividends payable 50 30 Creditors 120 65 1.282 491 Value of NCI Bank 250 100 Accounts receivable 227 92 Inventory 240 90 Property and equipment 427 209 Investment in Stanley 138 Goodwill on consolidation 1.282 491