hi, help me complete question 4.

QUESTION 4 15 MARKS Philips Limited (Philips) and Smeg Ltd ("Smeg") are both listed companies that have been specialising in custom making portable fridges and freezers for clients across the country. On 28 February 2021, Philips obtained control over Smeg Ltd when Philips obtained 80% of the shares in Smeg. The following is an extract from the separate financial statements of the two companies: Smeg Ltd Extract of the statement of financial position as at 28 February 2021: Philips Ltd ASSETS Property, plant and equipment 1 312 500 Investment in Smeg (at cost) 525 000 Trade and other debtors 87 500 Total assets 1 925 000 612 500 43 750 656 250 EQUITY AND LIABILITIES Share capital Retained earnings Loan Trade and other creditors Total equity and liabilities 875 000 315 000 700 000 35 000 1 925 000 350 000 175 000 96 250 35 000 656 250 Extract of the statement of profit or loss and other comprehensive income for the year ended 28 February 2021: Sale Cost of sales Gross profit Other expenses Profit before tax Other comprehensive income Total comprehensive income for the year Philips Ltd 262 500 (131 250) 131 250 (35 000) 96 250 0 96 250 Smeg Ltd 122 500 (52 500) 70 000 (8 750) 61 250 0 61 250 Extract of the statement of changes in equity for the year ended 28 February 2021: Balance as at 1 March 2020 Profit for the year Dividends declared and paid Balance as at 28 February 2021 Retained earnings Philips Smeg Ltd Ltd 227 500 113 750 96 250 61 250 (8 750) 0 315 000 175 000 Additional information: 1. Assume that all the identifiable assets and liabilities obtained, are shown at their fair value on the date of acquisition. The investment in Smeg Ltd is carried at its cost price in Philips's Ltd books. 2. Philips decided to measure the non-controlling interest at its fair value at acquisition date. The fair value of the non-controlling interest at acquisition date amounts to R131 250. MARKS REQUIRED Sub- Total total 6 6 6 co 12 (a) Prepare the at acquisition pro forma journal entry of the Philips Ltd Group Journal narrations are not required. Show all calculations. (b) Prepare the consolidated statement of financial position of the Philips and Smeg Ltd Group as at 28 February 2021. Communication skills: Presentation and layout (c) Indicate whether the following statements is true or false. A wholly-owned subsidiary is when the parent owns 100% of the subsidiary, thus there is no non-controlling interest? 1 13 1 15