Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I would like help with questions 13-16 please. I have attached all the pictures, soo please make sure to go through all of it. When

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

I would like help with questions 13-16 please. I have attached all the pictures, soo please make sure to go through all of it. When doing it I want it clearly written so I can understand it. And for the numbers I want to know how you got each of those answer for each of the stages. thank you

13. Backbeach Ltd acquired a 70 per cent interest in another entity, Frontbeach Ltd, in 2019 for a cost of $5 million. There was no goodwill or bargain gain on purchase. The consolidation worksheet for Backbeach Ltd and its controlled entity as at 30 June 2023 included the following: Parent ($000) 2 000 Consolidated ($000) Revenue 5 000 Cost of goods sold 400 1 500 Dividend revenue 1 000 200 Interest expense 50 100 Depreciation expense 100 50 Other expenses 50 10 REQUIRED Prepare a consolidated statement of profit or loss and other comprehensive income for Backbeach Ltd and its controlled entities that conforms with the disclosure requirements of AASB 101. LO 27.2, 27.3, 27.4.. 14. Kelly Ltd acquired 70 per cent of the share capital of Slater Ltd on 1 July 2022 for a cost of $300 000. At the date of acquisition all assets were fairly valued, and the balance of share capital and reserves was as follows: $ Share capital 180 000 Retained earnings Revaluation surplus 50 000 60 000 Settings 14. Kelly Ltd acquired 70 per cent of the share capital of Slater Ltd on 1 July 2022 for a cost of $300 000. At the date of acquisition all assets were fairly valued, and the balance of share capital and reserves was as follows: Page 1097 of 13 $ 180 000 Share capital Retained earnings Revaluation surplus 50 000 60 000 290 000 On 15 August 2022 Slater Ltd paid a $50 000 dividend out of pre-acquisition earnings to all shareholders that held shares at 10 July 2022. Non-controlling interest in the acquiree is measured at fair value. REQUIRED Using the above information, prepare the consolidation adjustments and eliminations required for the year ended 30 June 2023. LO 27.3, 27.4 .. 15. Layne Ltd acquired 90 per cent of the share capital of Beachly Ltd on 1 July 2022 for a cost of $500 000. As at the date of acquisition all assets of Beachly Ltd were fairly valued, other than land that had a carrying amount $50 000 less than its fair value. The recorded balances of equity in Beachly Ltd as at 1 July 2022 were: Share capital $ Retained earnings 350 000 100 000 450 000 Additional information 15. Layne Ltd acquired 90 per cent of the share capital of Beachly Ltd on 1 July 2022 for a cost of $500 000. As at the date of acquisition all assets of Beachly Ltd were fairly valued, other than land that had a carrying amount $50 000 less than its fair value. The recorded balances of equity in Beachly Ltd as at 1 July 2022 were: Share capital Retained earnings 350 000 100 000 450 000 - Additional information The management of Layne Ltd values any non-controlling interest at the proportionate share of Beachly Ltd's identifiable net assets. Beachly Ltd had a profit after tax of $70 000 for the year ended 30 June 2023. During the financial year to 30 June 2023 Beachly Ltd sold inventory to Layne Ltd for a price of $60 000. The inventory cost Beachly Ltd $30 000 to produce, and 25 per cent of this inventory was still on hand with Layne Ltd as at 30 June 2023. 1098 PART 8: Accounting for equity interests in other entities During the year Beachly Ltd paid $10 000 in management fees to Layne Ltd. On 1 July 2022 Beachly Ltd sold an item of plant to Layne Ltd for $40 000 when it had a carrying amount of $30 000 (cost of $50 000, accumulated depreciation of $20 000). At the date of sale it was expected that the plant had a remaining useful life of four years, and no residual value, The tax rate is 30 per cent. . REQUIRED Prepare the consolidation adjustments for the year ended 30 June 2023 and, based on the information provided above, calculate the non-controlling interests in the 2023 profits. LO 27.3, 27.4 16. On 1 July 2021 Anderson I td acquire 70

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions