For my consolidation journal entries, from D - h am i correct in my calculations
On 1/7/17 ABC Led acquired 100% of the issued shares for XYZ Itd $3,092,000 At the date of acquisition, the Owner's Equity of XYZ consisted of Share capital $1,391400 Plant replacement reserve 5347,900 Retained earnings $260,820 2,000,120 As at 30/6/20 The accounts of the two companies are as follows ABC XYZ Sales 4,947,500 2,493,000 less Cost of Goods Sold 2,968,500 1,620,400 Depreciation expense 247,300 124,600 Interest expense 197,900 60,190 Other expenses 481,000 94,310 Other Income plus Interest revenue 90,200 Dividend revenue 270,500 less Income tax expense 424,000 178,000 Net Profit after Tax 989,500 415,500 Retained earnings (1/07/2019] 1,484,100 434,700 Available for appropriation 2,473,600 850,200 Interim dividend paid 231,900 115,900 Final dividend declared 386,500 154,600 Retained earnings (30/06/2020] 1,855, 200 579,700 Share Capital 4,019,600 1,391,400 Plant replacement reserve 309,200 347,900 Total Owner's Equity 6,184,000 2,319,000 Loan payable (Due 30/06/2022] 0 463,000 Dividend payable 386 500 154,600 Deferred Tax Liability 463,800 38,600 Other liabilities 695,700 116,800 Total Liabilities 1,546,000 773,000 Total Liabilities & Owner's Equity 7.730,000 3,092,000Dividend receivable 154,600 0 Inventory 1,082,200 185,500 Property, Plant & Equipment 2,087,100 1,236,800 Accumulated depreciation -834,900 -247,400 Land 1,314,100 1,236,800 Investment in XYZ 3,092,000 0 Loan receivable 463,000 Other assets 371,900 680,300 Total Augets 7,730,000 3,092,000 Additional information; 4) At date of acquisition, all identifiable net assets of XYZ were recorded at fair value, with the exception of a block of land in the books of Noriku Lid. The block of land had a carrying value of: $1,236,800 and a fair value of: $1,730,000 b] The directors apply the impairment test for good will annually. As at 30/06/2020 The cumulative good will impairment write downs for prior years totalled: -$3,863,000 On 1/07/2018 c] An equipment owned by XYZ Lid was sold to ABC Cost of the equipment was: $552,000 Accumulated depreciation of the equipment was: $197,000 The asset was sold for: $494,000 ABC Led estimated this item had a remaining useful life of: 5 Years and residual value of: so d) The opening inventory of ABC Lid includes unrealised profit of: $324,000 on inventory transferred from XYZ Lid during the prior financial year. All of this inventory was sold by ABC Lid to parties external to the By 30/06/2020 Group.el During the current year, ABC Lid purchased inventory from XYZ Lid for: $1,406,000 This inventory had previously cost XYZ $562,000 Percentage of this inventory sold to outsiders by Yokiko Lid during the Year Was: 50%% XYZ Led borrowed a loan from ABC Lid amounting to: $463,000 On 30/06/2020 XYZ Lid paid the annual interest for the intra group loan at a rate of: 13%% gl During the current year, ABC Lid paid Avenge Lid, an external party for management fees expense amouning to: $2,000 h] The following are dividends paid and declared by XYZ Ltd to ABC Lid: Interim dividend paid 115,900 Final dividend declared 154,600 il The tax rate is: 30%%d. Retaned earnings $226,800 Income tax expense 597,200 Cost of goods sold $324,000 Sales Revenue $185,500 Cost of goods sold $185,500 e. Sales Revenue $1,406,000 Cost of goods sold $1,406,000 Cost of goods sold $422,000 Inventory $422,000 OTA $126,600 ITE $126,600 f. Loan Payable $463,000 Loan recievable 5463,000 Interest revenue $60,190 Interest expense $60,190 E. Management service payable $2,000 Management service expense $2,000 h. Dividend revenue $115,900 Divdend paid $1,159,000 Dividend payable $154,600 Dividend declared $154,600 Dividend Revenue $154,600 Dividend recievable 5154,600
