Hi! I need help with this problem regarding consolidation.

ACCT 20002 INTERMEDIATE FINANCIAL ACCOUNTING Lecture 10 - Workshop Exercise On 1 July 2010, Parent Ltd acquired 80% of the shares of Sub Ltd for $125,000. At acquisition date the equity of Sub Ltd consisted of: Share capital $80,000 Revaluation surplus 16,000 Retained earnings 20,000 On this date, all the identifiable assets and liabilities of Sub Ltd were recorded at fair value with the exception of Land that had a carrying amount $20,000 below fair value. Additional information (a) Profit in inventory arising from intra-group sales: At 30 June 2013 $500 in Parent arising from $3,000 of purchases from Sub during the year $200 in Sub arising from $1,500 of purchases from Parent during the year At 30 June 2014 $1,200 in Parent arising from $10,000 of purchases from Sub during the year ($450 of these purchases are outstanding at the reporting date) $300 in Sub arising from $4,000 of purchases from Parent during the year ($150 of these purchases are outstanding at the reporting date) (b) On 1 July 2011, Sub sold equipment to Parent Ltd for a profit of $5,000. Parent charges depreciation assuming a 5 year life with no residual value. (c) During the current year Sub provided rental services of $800 to Parent for cash. (d) The directors of Parent believe the recoverable amount of the business combination has exceeded the carrying amount since acquisition. (e) The tax rate is 30%. Required a) Complete the consolidation adjustments and the Non-controlling Interest worksheet provided as at 30 June 2014 b) Complete the consolidation worksheet provided as at 30 June 2014 c) Complete the financial statement extracts provided as at 30 June 2014 (a) CONSOLIDATION JOURNAL ENTRIES 1 2 (b) Consolidation Worksheet as at 30 June 2014 Parent Sub 90 000 (65 000) 75 000 (48 000) 25 000 7 000 27 000 5 000 Depreciation General & admin expenses Profit before tax Income tax expense Net profit after tax Profit attributable to NCI Profit attributable to the parent Retained earnings (1/7/13) Dividends paid (9 000) (11 000) 12 000 (3 500) 8 500 (6 000) (15 500) 10 500 (3 000) 7 500 33 000 (6 000) 25 500 (5 000) Retained profits (30/6/14) Share capital Revaluation surplus 35 500 130 000 13 000 28 000 80 000 19 000 Equity attributable to NCI Accounts payable Deferred tax liabilities Loans Total equities Cash Receivables Inventory Deferred tax assets 21 700 800 110 000 311 000 19 800 28 000 35 000 2 200 30 500 500 50 000 208 000 4 500 16 800 22 300 1 400 24 000 62 000 140 000 30 000 41 000 92 000 - 311 000 208 000 Sales revenue Cost of sales Gross profit Other income Motor vehicles (net) Equipment (net) Land Shares in other entities Goodwill Total Assets 3 Adjustments DR Ref CR Group 151 000 431 950 (a) Non-controlling Interest worksheet Sub Ltd Retained profits (O/B) (from worksheet) Adjusted opening retained profits Net profit (after tax) (from worksheet) 7 500 Adjusted profit Dividends paid Adjusted Closing retained profits Share capital (from worksheet) Reserves 80 000 (from worksheet) Total equity (c) Disclosure Extracts Income Statement (extract) for the year ended 30 June 2014 Group Net profit 12 140 Net profit attributable to non-controlling interest Net profit attributable to the parent Balance Sheet (extract) as at 30 June 2014 Equity Share capital Reserves Retained profits Equity attributable to members of the parent Equity attributable to non-controlling interest Total equity 213 050 Note - NCI in Equity Share capital Reserves Retained profits Total NCI in Equity 4 NCI (20%)