From the following balance sheets and additional information, prepare a consolidated balance sheet as at 31 December
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Question:
From the following balance sheets and additional information, prepare a consolidated balance sheet as at 31 December 2022.
Parent Company Balance Sheet as at 31 December 2022:
- Non-current assets: £1,600,000
- Less Depreciation: (£500,000)
- Current assets: £400,000
- Share capital: £1,700,000
- Retained earnings:
- As at 31.12.2021: £500,000
- Add Profit for 2022: £150,000
Subsidiary Company Balance Sheet as at 31 December 2022:
- Non-current assets: £900,000
- Less Depreciation: (£300,000)
- Current assets: £250,000
- Share capital: £700,000
- Retained earnings:
- As at 31.12.2021: £200,000
- Add Profit for 2022: £80,000
Additional Information: Parent Company acquired 80% of Subsidiary Company on 1 January 2022. During the year, Parent Company sold equipment to Subsidiary Company for £70,000, which originally cost Parent Company £60,000. Subsidiary Company depreciated this equipment by 15% during 2022.
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