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Consolidation Worksheet Adjustment Entries (10 marks) On 1 July 2020, Dark Ltd acquired all the issued shares of Sam Ltd for $425000. At that date,
| Consolidation Worksheet Adjustment Entries (10 marks) On 1 July 2020, Dark Ltd acquired all the issued shares of Sam Ltd for $425000. At that date, the equity of Sam Ltd was recorded at: | ||||||||||
| Share Capital | $150,000 | |||||||||
| Retained earnings | $125,000 | |||||||||
| Reserves | $70,000 | |||||||||
| All the assets and liabilities of Sam Ltd were recorded at amounts equal to their fair values at the acquisition date, except ; | ||||||||||
| Carrying Amount | Fair value | |||||||||
| Patent | 27500 | 35000 | ||||||||
| Inventory | 14500 | 22500 | ||||||||
| Equipment (cost:$60000) | 55000 | 65000 | ||||||||
| Required: 1. Prepare the acquisition analysis at 1 July 2020. (1.5 marks) 2. Prepare the consolidation worksheet entries for Darka Ltds group at 1 July 2020. (8.5 marks) | ||||||||||
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