Hello there,

I would like to get help on my accounting assignments. Please find attached a copy of Assignment 2 and Assignment 3. Your help is greatly appreciated.

Thank you.

1 Assignment 2 This assignment should be completed after Chapter 7. It contributes 5% toward your final grade. Remember to show all your work as partial marks may be awarded. Question 1 (40 marks) On October 1, 2010, Madison Ltd. acquired all the shares of Dobson Ltd. for $849,600. On that date, Dobson's statement of financial position showed share capital of $540,000 and retained earnings of $273,600. In addition, at the acquisition date, all of Dobson's identifiable assets and liabilities had carrying values that equaled their fair values. Madison and Dobson's financial statements for September 30, 2014 are presented below: Statement of Financial Position As of September 30, 2014 Assets: Current assets: Cash Short-term investments Accounts receivable Inventory Non-current assets: Land Equipment, net Investment in Dobson Dobson Ltd. $ $ 144,000 27,000 18,000 302,400 491,400 126,000 75,600 849,600 1,051,200 1,542,600 Liabilities and shareholders' equity: Current liabilities: Accounts payable Non-current liabilities: Deferred income taxes Shareholders' equity: Share capital Retained earnings ACCT451v12 Madison Ltd. Assignment 2 131,400 122,400 540,000 64,800 858,600 216,000 27,000 ___-___ 243,000 1,101,600 9,000 23,400 93,600 102,600 54,000 77,400 900,000 540,000 1,440,000 $1,542,600 540,000 484,200 1,024,200 $1,101,600 June 26/2014 2 Statement of Income For the year ended September 30, 2014 Sales revenue Cost of sales Gross profit Madison Ltd. Dobson Ltd. $ 2,152,500 1,598,400 554,100 $ 1,670,400 1,207,225 463,175 103,500 9,360 7,200 120,060 57,600 8,640 __-___ 66,240 300 (1,800) 432,540 173,016 $ 259,524 1,225 __-___ 398,160 213,264 184,896 Expenses: Salaries and benefits Amortization Other Other revenues and expenses: Investment income Loss on disposal of asset Income tax expense Net income $ Statement of Changes in Equity For the year ended September 30, 2014 Madison Ltd. Dobson Ltd. Share capital, October 1, 2013 Changes during the year Share capital, September 30, 2014 $ $ Retained earnings, October 1, 2013 Net income Dividends declared Retained earnings, September 30, 2014 424,476 259,524 (144,000) 540,000 $ 1,440,000 ACCT451v12 Assignment 2 900,000 ___-___ 900,000 540,000 ___-___ 540,000 299,304 184,896 ______ 484,200 $ 1,024,200 June 26/2014 3 Additional information: Both companies use a perpetual inventory system, have a September 30 yearend, and a 30% tax rate. Madison uses the entity theory method for consolidation. On June 30, 2014, Madison sold some equipment to Dobson for $10,800. At that date, the net book value of the equipment to Madison was $12,600. The equipment is expected to have a remaining useful life of 10 years. On April 1, 2014, Madison purchased $90,000 of merchandise from Dobson. Dobson had acquired the goods for $54,000. On July 15, Madison sold half of the goods to a customer for $50,400. The remaining goods were still in Madison's inventory at its 2014 fiscal year-end. At October 1, 2013, Madison had some goods in inventory that it had purchased from Dobson at May 25, 2013. The profit on these goods was $10,800. These goods were sold by December 31, 2013. In 2011, Madison sold a tract of land to Dobson for an accounting gain of $36,000. Dobson plans to build a warehouse and office complex on the land in 2015. Required: Prepare Madison's consolidated financial statements for the year ended September 30, 2014. (Round numbers to the nearest dollar, and show all your calculations.) ACCT451v12 Assignment 2 June 26/2014 4 Question 2 (60 marks) On January 1, 2015, Portia Ltd. issued shares worth $1,120,000 to Storm Ltd. to acquire 80% of Storm's outstanding shares. On the acquisition date, Storm's statement of financial position shows share capital of $420,000 and retained earnings of $777,000. At the acquisition date, all of Storm's identifiable assets and liabilities equaled their fair values with the exception of the following: Inventories (fair value exceeded book value by $14,000) Investments (fair value exceeded book value by $14,000) Equipment (fair value exceed net book value by $105,000) At the acquisition date, Storm's accumulated amortization account for the equipment had a balance of $805,000. As of the acquisition date, Storm's equipment had a remaining useful life of 10 years. Additional information: Portia records its investments using the cost method. Portia uses the entity theory method of consolidation. In 2017, Portia sold all its investments for a gain of $63,000. In 2018, Portia purchased equipment from Storm for $127,400. At the sale date, Storm's net book value of the equipment was $98,000. Storm had originally purchased the equipment for $140,000. After the purchase, Portia amortized the equipment at a rate of $18,200 per year for the remaining 7 years of its useful life, taking a full year of amortization in 2018. During 2019, Storm purchased goods from Portia. At the end of 2019, Storm still had $28,000 of these goods in inventory. Portia had earned a gross margin of 40% on the sale. The goods were sold to external customers in 2020. During 2019, Portia purchased goods from Storm. At the end of 2019, Portia still had $140,000 of these goods in inventory. Storm had earned a gross margin of 40% on the sale. The goods were sold to external customers in 2020. During 2020, Portia sold goods of $140,000 to Storm. Portia earned a gross profit of $56,000 on this sale. At the end of 2020, Storm still had $56,000 worth of goods in inventory. During 2020, Storm sold goods of $980,000 to Portia at a gross margin of 40%. At the end of 2020, Portia still had 10% of the goods in inventory. During 2020, Portia received $126,000 in royalties from Storm. Between January 1, 2015 and December 31, 2019, Portia received $700,000 in royalties from Storm. The financial statements for Portia and Storm for the year ended December 31, 2020 are presented on the following pages. ACCT451v12 Assignment 2 June 26/2014 5 Statement of Financial Position As of December 31, 2020 Portia Ltd. Assets: Current assets: Cash Accounts receivable Inventory $ Noncurrent assets: Land Equipment Accumulated amortization, equipment Investment in Storm Total assets Liabilities and shareholders' equity: Current liabilities: Accounts payable Noncurrent liabilities: Loan payable Shareholders' equity: Share capital Retained earnings 70,000 210,000 252,000 532,000 Storm Ltd. $ 28,000 224,000 140,000 392,000 140,000 7,000,000 (2,478,000) 1,120,000 5,782,000 $ 6,314,000 3,780,000 (1,736,000) ____-___ 2,044,000 $ 2,436,000 $ $ 630,000 280,000 420,000 1,050,000 700,000 980,000 1,680,000 3,584,000 5,264,000 $ 6,314,000 420,000 1,036,000 1,456,000 $ 2,436,000 Condensed Statement of Comprehensive Income For the year ended December 31, 2020 Portia Ltd. Revenue: Sales Royalties Dividends $ 2,804,200 $ 2,100,000 210,000 100,800 ____-___ 3,115,000 2,100,000 Expenses: Cost of sales Other Net and comprehensive income ACCT451v12 Storm Ltd. Assignment 2 1,680,000 1,260,000 784,000 575,400 2,464,000 1,835,400 $ 651,000 $ 264,600 June 26/2014 6 Statement of Changes in Equity - Retained Earnings Section For the year ended December 31, 2020 Retained earnings, beginning of the year Net income Dividends declared Retained earnings, end of year Portia Ltd. Storm Ltd. $ 3,353,000 $ 897,400 651,000 264,600 (420,000) (126,000) $ 3,584,000 $ 1,036,000 Required: Prepare Portia's consolidated financial statements for the year ended December 31, 2020. Be sure to show all your supporting calculations. ACCT451v12 Assignment 2 June 26/2014 PK##########!#J#\\#### ######[Content_Types].xml ##(########################################################################### ################################################################################ ################################################################################ ################################################################################ ################################################################################ ################################################################################ #######################################MO0#H#"_W#+#ja# #g 4#@N6#TpF\\"%33$@#YzLxh)HU\\CA= >$ :+o#ln4A+nEka#?rre(}=>UIjn_1B##ve##( t#" @ xxNw@ @K7|Yn##x#r#1zK'! *#vI#p"f3\\T#I S#W#Yig@X6_#]7#~ f##ao.b*lIrj),#l0%b 6iD_, |u#Z^#t y;#!Y,#}{C/h>#####PK##########! #D5####L#######word/_rels/document.xml.rels ##(########################################################################### ################################################################################ ################################################################################ #######################O0#M#RPPEMxU]w#vi#### %w#m:QM#Fg##u=I#r]h## p ] h } #wiA#iM[O^####cj1$f(2b#_[l#e-  #=##^# #}} R#Ih>##`#`gB#ZXT#Ewor:\\7>j#Qc###+a{B#l## y7L_T#### #\\!#bS\\a#.7o{##g#E%A8#[n%?#t #w#{Bx#@#K7a8U'#_#####PK##########! #>,##s#######word/document.xml] [o8~_`#a#@*{Ab($`d:V,i$9.S}dDJbKry#w xxx./? ##yfo:uul#f##ASj96n1#f##^aW+ n=7lAix s Y| vf3`W7n\\1x#j?S#n|2#9 #=}^P#owi`>#;xsXzUDA'W! A#/1q#G##~#48?74^6\\7%[nb +X##Ka4##w7yV#_# #5k^##o! 5/P1_@Y5O#$TaN] #x#V.Al X<:5 es iofn>xhdt# #>e#"%X'[@y0#,8###_/W%#?#F#^Cw"E#Cq#$_| pu:##w/M}bySj]7o)#>+#f? b0~XcWKP#c>Yc ? w HC}N#@#x2`>i5#;#A#gE)Y;KLZSvN,#! ##>#~;0#2#3>#yLulzL#87r+"d]; #,Ox#74#P\\#e#e6z6A#q>: |#`2#3#bt##O6mx)#x;##gQn@##tn/8#a 2#onyi9##3!/X#e##@X#3j#@,6###f#0###  i Jdi i Ejjj%S=QP.###%S#b|B=Fx##*Y]eYCRExR#@kDeOD| j####.kyWWK#-t,W"xD#FXJ#nr %#iFQ|h.Z#dt3c}eGTd#e```M %#KC[@y0#T#:? t#,"PP{{##B#QAV#t.#U##QR#xx)?h~ %Y#g\\.1#'BJ#Y6bdhTq#@xoPfvhnWWr#oL#b'T| #~##HNAP{hG?#*-@#*@ # # 5,yx&x$@#H0 Gm#%ql$G|! ### cyi`6!#>#s6l"5 gi#|nh1'#S;MibIZ4\\]mZP ;B#^i+S5InQ]#=X#^xDe)JEa1Vm#Que)}L tT @#zY##_k#F1s g'&+(!sg#OQTH-?6:#! xc09B t` #} ####.MCa7tq&$ZE#|KjSQp"^K6-vmE$*##6#t#| EAL#Tn^##Q#)#"#~!AD@*u ]w3##gvy`#,! f0@_@v $#=#9Yti###vIm[3bx#|x ##L#m#?u#h7:x|(g #$=#hc%4 ? EAEy8#I#l#edEAN/ #?Y!j1KK(=a  )N#4W##R9d#w#Sry#'#a###o##gPR#z#~a#0_#2h####Ne#N# E##,aby#Vo,,#$##QtV#)w2#)x-#ZE#n+ C=Xa#I3I##p##@y#TF#1#+#r#_d# |6##.cbv WiBUL-WqEiu7SfXhW#IYqs`ev9P%uDkAAC^BtT## [? p##2)#J##s'!#VGZ-##>v}+\\#HT#oAV9u#t#[) [lS+`e24" NL#oI#;" #f"K]##w#  9] v#I*25###'\\;k#]BN/9[j#/Ay;?! 9#-#v+eiy*6#G#!L%~_LR7yAq:2D=EW#,nI! m,#N2HUv#XW#}#W #wH #_#utA&}4-8J&~M  Pl_C### %U#.#l#/]Y#(%h:KrK#e! Y##e&N w#I#[d3#h#Qx#n#1###WvPv'w#8pT7#~QH##&7#79D^{_Y5^O[#| uD#T tt0 !L] bV`,V g#pk#*#5}`bP&8#$1#E#; 5D#J (#g#5m6%z6?| 4t##nag#EHMvf+S".5u=EL)#k'&D3ZQ##M;4Ww#{#K# =##Icru+B~@>{q ##mx'0h;fwCZ#B# 2qR!)8;## .DO#]v| c#;h&?]@+tPSv;y'##k~.e~y4k#5"wC#>#QN#T#R/cG '#m#3?P##: 6 #1BIW34Jw`####Qj#:U5f\\DD\\|W#z? Nv? J1#HE##w#Z_-_bK~#Ijn  +NiN7#v ##~LTq2u  #2J+U9ZD##GZ43A#*C#HU#^A#l  j#;v2P##%#m#*MRz~J.=nB|?KX9& 1&w\\Znwn#{##k^U['jh##D8% 5#_B#('#xt{X#hpf#=m#2#(Z`3C####`#[3L#O cih(=#N###m>K923'|Rh7tLj#bO;zBV y#[u/8u2 vl>S(4d #.*^:tRZE![#W6GeU~yw]##:Vgr #v *allq|UJn_O QSw|cC#I#}L#;7LC@##-#:#BSIN- 8 #V q{X]L#Uv#V+I  7# _J%GM# Z]~]z&N#]##rM>;M2#+u>JggnqI\\-#fON`Cz;sJ bpPu+MM.(;v{C#Fjx[Q%s:&>3#v'*H#2i0.=liWRb-ZO}| 'i+cFlSRa{#ze# P#"= T )v7iySjS|m)}#"/-#/pK%&$b(# ##V5;#Bp}#rGT!uZ`# w#7z$C#5~BA]#L%e6WJyI Is6#=WW= #97/c#YP #"WkSeU#? UV#rs!(A#_#### ]r#~#Jg##SkR:$[##### t##?#F, t:c#G#v ##/t\\]. %p#EVp}x}y#C5Rf"MG#d&ycf/9#9! LONqR#m#p#H6:#c##k$ #iK[Pn\\#gk7#f##S+3X#/8##d y#.St-q=#/|#O6}u;; Q V#>FQvG*#0BbsQ #"b:q`eD:;z]8W8h#M#x& #7Y6r,94{OI## 5>(#Js#"E4rYsvq#O"##pqU$gtF2C\\v*#+z##] (/ o1 # Q?1`#OTD#ywK:##W?.-b>###" % %JBkG#g#j#7##j+ E#H;3b#@|N## r #&#K?ZS Sgh>n9/_bW#Rx k9i#^zP3=gn##Pz>#v#\\B?#iC#7[o#Y?8##> /Rv?[P##E#/1#D#DK##\\,deSs-( N{,Q,#pj#fo#LJt`#e/dhBJYx/v9!F## 5Hn#)lZ#+pbtVQ)T6+w"x,# 3L]9x 1t##! e#4Ohein"s(e>u J#.##>7#$[o9Ye2(0i#GBm'P###+]/z###^JQ#Q5# #s#^#3~H.c^#,,FAh## 9 2 # S#m#Bk 0 CV'X-7## ap$##0H[FqKev}h#M4%wn[| #iHRCt"D3x`lO}\\S6f#uR# IA~zY#m#PH3,RWFI Y#Qx#dd#B@4#EEB7FJQ&(#"u )"=4x9Xsskh###^;f1*}7uRn[r4f 8K~^be#)LCI #?9a######PK##########! ##o##########word/footer3.xmln0##H[#w}I#X#*A0D#S#R6 x_##Q`#Q)#X 3g##l\\i9#cli$C###R#S+0)#Q i# S YS S *E{@3se`$qv#f%1#x&n@ A'#wK#az.NE.#)d #>-Rv_q/_g/=X#RV#=b ) vu{ob#3H4E#I0~#9# :J}vz&,4wl##h#IF! k#U8O${B#U5Aap#Gw`#);Dfys[ ###3#3##p#+#'#o#0jin$'T&/Sbz;QjIJcg@hY D0E0#:n;>#u0#o\\=Y/wT~ f#nS/###}#u.#s#41D7#es0#) .iU ,br\\ClE%|Ct0F#,-`##y?puh>(H[c3#nL~######PK##########! ##o##########word/footer1.xmln0##H[#w}I#X#*A0D#S#R6 x_##Q`#Q)#X 3g##l\\i9#cli$C###R#S+0)#Q i# S YS S *E{@3se`$qv#f%1#x&n@ A'#wK#az.NE.#)d #>-Rv_q/_g/=X#RV#=b ) vu{ob#3H4E#I0~#9# :J}vz&,4wl##h#IF! k#U8O${B#U5Aap#Gw`#);Dfys[ ###3#3#}O,T'G]##GUmf# 7#Q####K!5Y #}x#Il3' ###`#{U"#jq[vPl8#+&,#et|.#~#####PK##########! #B##########word/header1.xmlN0#EHC}GAQS#T@w#X#v#8##6qx ;SdrP ! rI#####%h,[  8OM+M#;c- $v*95`!sS #Cqp#a#6o#eTD#'4L\\##I`IG'k.zv81#4##! q+[#3rK6r LLxl_ibK*#(U:##,#!o#8R C]W##5bp9{%p5`Va~4PA*g#e }k$ht_s# $W##WTEWA}"#:b/ #,#p{g,n+Z#'FRf#^^ g ;yh#####PK##########! #T##########word/endnotes.xmlTN0 }G#oI#Z##7#B##%kAK:9v.N! $2#I#)XvrI"9dD)HG#':#z##.HII(uVO#jy5 ;cQH#5wc44##WVshWTsVI@7 WU* TT#Nd#$[A (#n=(*w2h@p20~#B,zIcAu M$### ##!)O^rC$y@#/yH*#)UDb`}"q J #X^)I`nE#p)##li V1MG# MGeD###3Vq %'#q##$8ZK##)fw#9:## x}r#x##w#r:\\TZaG*y8IjbRc|X#I u3#KGnD#1#N##IB#s RuK>V.E#L+M2#'fi ~V vl{#u8z#H *##:(#W#~#JTe\\O*tH#GHY#}KNP* ##T9/#A7qZ#$*c? ###qU#nw#N##%O#i4##=3##N#)#cbJ#uV4(Tn 7#_?m-{UB#wzn"Z## xJZ#p;##{#/#S#R!#3#K4'+r#zQ TTI#I#vt]KcK#v5+|#D##~#O@ %\\w_nN[L9Kq#gVh#n R!y+#Un;*&/Hr#T >##>\\#t=.T ####S; Z~#!#P9giC!#### B,;X= ,I#2#U#WV#9$lk=#Aj#;#{AP79|s*Y#;# [MC #h#f]o{oY#=1k#yV#V5E8Vk+\\80X4D)!!#?*|fv u"xA@T_###q64)k uV7#t#'%;i9s9x,45-xd8? #d/Y|t### &LI#LJ`# -Gt/#####PK##########! #qH###x#######word/settings.xmlWmo6#>`9#n!N! Y Y#DDERQ:a>=w;n|a q,#ECq|X.#g+# N6#7wv;=Q #}sRKW>#### +a-k: T=#WJt#C ^7A',q:\\#Vp%E;kBmK%l NMG#l##a5/! B t A#8Kd|?# 9#,67#i ;R#V#LCJ@ Z:\\#c1#s#At:!#gI_wI#;#pI#`K* #jT$s(\\###^#p#\\b##;R#vTJ!#/:###vH_ #b#^4:HJ3####JM#yhV#xQd[8 6#o##%| B#[w4^0F_J(# k*WV)3#,r'(O#O2*+;p(TPN#9 D:Je#U$FZ#K*#\\pLUg%t# *a#h #scxEp#2#+###/+{%##7-U3j,Q#M#G:g(9#wsF-3#)F"#j~#{J]Y# #`T .M,WuA[*rUd2#Qu#.#8t~3w|ENW|5#Xn #;#oD :Jo#BV;,`3G? G9u3#t#'p/b##ch#sF+##]#wW#*###t o_ ~]h~]h#_ #i{ {w)c m#q#t ##&6I"1g3#>QxIG#(th#lt_I#;A# #2 #^q#9kvn##PHg#>CO#GEI%hhS| ~##2B##3teSvde#J@upr^7#uNPn#P2S7 XM#jsdk*)v I0M##F @7#xw '#,6#M#C8#-# 6h+gt{h#M@a'.##vv\\M!#&T##o#0M##F @7#h##n#x#`l#647g#o# ;Au&S#TsH%`#T2M!#2XHnS7ca#4x##o#P##N Xlm0j7####o##[###7 7#x#P#9##;A#,##,Ko#q,s:8lW\\+9g###wf# [  L#|{ hg#XFO{VFegL`#;#&~#'i##IP;nz$#x7,#HAUc##s( -Q{[38(#|##_*z#^^,/ Q o0} ?_`EKz#6>#a;###Gt#,] iGV 2k -`}p^;#@}\\^M#hkkdjKP O##o#8M##G @#d4BMq##}~#6#@##O#'!nn9# ?? L};Y.zH_4e#N#w|m#.;#KI#g :#s\\N?WJCH]#@###XT#]##>Y: eoQ%D ]E##9#Bs9#_N igD#, D#U+S5Df,P(8 )k#z|i;f=;,t uR#cAS#UC  h#|#Tlaz#XWeFl3C##c cNy#qfLi##Y# J[N##1q6=G##RiK>L##z9W1x:!/A#@A=R#z.TVXi##jTN/#ZS .P_iaD_z5#pZT#?####PK##########!##MG *7T36#c\\#|#9p]wB|,# l:3 3@]=;!Y ::/qsw#] #+[d7c[ZrB|#(#ASRviFk#j2s######PK##########!#F V##########docProps/core.xml ##(########################################################################### ################################################################################ ################################################################################ #######################QO0#M##d.{r3##m:#c{z| ql#VJ#(# @r%*Y#e#P`#JB:hAoor3 aM| #X##Kd#####PK##########!# l# ##T{######wordumbering.xml]F# * RU#9x#I( J##~T$/Gc#0#####9 s@#3=#==ov B&Ct#W B B B e # J#?#vugc WV#z Y#;5@  #w9  | tG{$#b##ka>Q`.[wPj2G^}#Q 0#bbwD#kg9#/#1W#~6r7 M9#i2#6#?#F#9 #l]####Cp#V#YA9#1c=E fb^'Ysbw### ##@= [YO&0>#F#f]x*w#\\  K2#Mgv\\#3 y#r.pq#y]?##JW6t#i###| #L7#f\\"5#A/## 6Jf## %P#t###ZHUq#####_:nD e###u+M@#O#*{#O/#k_B!8#Fkk##!DM[*j#nbE8" ##L#\\ITh kk##N)8"pVG:#Y[Sx#^\\Dg#b_#9g547_:}# n | [#"'P9XM8##,~W(: ap#ZGX #r#y##,u/j#JxbBRg(##,u&:##K=w}|e#m\\#PGx2)a'C%Y aQI#~#|dH\\z:\\H}Vnz#dI oK$KRknJ#]JSCFU%##$#%`AV##-%z#'}MR#Pa|######PK###########!#J#\\#### ####################[Content_Types].xmlPK##-#########! ######N################# ###_rels/.relsPK##-#########! #D5####L#################.###word/_rels/document.xml.relsPK##-#########! #>,##s################# ##word/document.xmlPK##-#########! ##o####################c6##word/footer3.xmlPK##-#########! ##G###i#################28##word/footer2.xmlPK##-#########! ##o####################:##word/footer1.xmlPK##-#########! #n###m#################v