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I need solution to this. Can you confirm the price? Q1 Consolidation worksheet entries Ben Ltd operates a number of supermarkets with an emphasis on
I need solution to this. Can you confirm the price?
Q1 Consolidation worksheet entries Ben Ltd operates a number of supermarkets with an emphasis on the supply of quality produce The operations of Sam Ltd are primarily in the fine fruit market. Believing that the acquisition of Sam Ltd would enable Ben Ltd to expand its supply of quality produce to its customers, Ben Ltd commenced actions to acquire the shares of Sam Ltd. On 1 July 2013, Ben Ltd acquired all the issued shares (cum div.) of Sam Ltd for $123 500. At this date the equity of Sam Ltd consisted of: Share capital Reserves Retained earnings $100 000 5 000 10 000 On 1 July 2013, Sam Ltd had recorded a dividend payable of $6000 and goodwill of $5000 (net of accumulated impairment losses of $7000). The dividend was paid in August 2013. In the previous year's annual report Sam Ltd had reported the existence of a contingent liability for damages based upon a lawsuit by a customer who had slipped on some fallen fruit in one of the stores operated by Sam Ltd. Ron Ltd calculated that this liability had a fair value of $10 000. Sam Ltd also had some customer databases that were not recorded as assets but Ron Ltd placed affair value of $6000 on these items. Sam Ltd believed that the databases had a future life of 4 years. All of the identifiable assets and liabilities of Sam Ltd were recorded at amounts equal to their fair values except for the following: Plant (cost $120 000) Land Inventory Carrying amount $94 000 80 000 20 000 Fair value $96 000 85 000 24 000 The plant had an expected remaining useful life of 10 years. The land was sold by Sam Ltd in February 2015. The inventory was all sold by 30 June 2014. In February 2016, Sam Ltd transferred $3000 of the reserves on hand at 1 July 2013 to retained earnings. The remaining $2000 was transferred in February 2017. The court case involving the damages sought by the customer was settled in May 2017. Sam Ltd was required to pay $7500 to the customer. Required Prepare the consolidation worksheet entries for the preparation by Sam Ltd of its consolidated financial statements at 30 June 2017. Q2 The following details are taken from the accounting records of Mercy Ltd as at 30 June 2016: Debit Credit Plant and equipment (net of depreciation) $ 800 000 Land 600 000 Buildings (net of depreciation) 900 000 Investments (long-term) 460 000 Accounts receivable Allowance for impairment of receivables Inventory Bank overdraft Accounts payable Dividend payable Goodwill (net of impairment) Share capital (3 200 000 shares) General reserve Retained earnings Income tax payable Other debtors 600 000 $ 60 000 520 000 200 000 400 000 256 000 300 000 2 400 000 290 000 375 000 249 000 50 000 $4 230 000 $4 230 000 Additional information (a) Profit for the year was $581 000. (b) Balance of retained earnings at 1 July 2015 was $80 000. (c) During the year $30 000 was transferred from retained earnings to general reserve. (d) A final dividend of 8c per share has been declared by directors and is not subject to shareholders' approval. Required Prepare the statement of financial position and statement of changes in equity to comply with AASB 101. Include Notes to the accounts for the above financial statementsStep by Step Solution
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