Exercise $3$

On $1$ July $2013($ DATE OF ACQUISITION $),$ Pyxis $($PARENT$)$ Ltd acquired all the share capital

of Gemini $($ SUBSIDIARY$)$ Ltd for $218,500.$ At this date, Gemini Ltd$\text{'}$s equity comprised:

CARRYING AMOUNT OF EQUITY OF SUBSIDIARY

All identifiable assets and liabilities of Gemini Ltd were recorded at fair value as at $1$ July $2013$

except for the following:

The equipment is expected to have a further $10-$year life. All the inventory was sold by June

The tax rate is $30\%.$

$\backslash$times On $30$ June $2014,$ the directors of Gemini Ltd decided to transfer $25000$ from the general

reserve to retained earnings.

Required:

Prepare the acquisition analysis on $1$ July $2013.$

Prepare the consolidation worksheet entries for the preparation of consolidated financial

statements for Pyxis Ltd and its subsidiary Gemini Ltd as at:

A$.1$ July $2013$

B$.30$ June $2014.$