{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-15T14:13:06-04:00", "answer_date": "2024-06-15 14:13:06", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "3089865", "url": "\/study-help\/questions\/iat-1-july-2011-all-the-identifiable-assets-and-liabilities-3089865", "question_creation_date_js": "2024-06-15T14:13:06-04:00", "question_creation_date": "Jun 15, 2024 02:13 PM", "meta_title": "[Solved] i.At 1 July 2011, all the identifiable as | SolutionInn", "meta_description": "Answer of - i.At 1 July 2011, all the identifiable assets and liabilities of Summer Ltd were recorded at fair value except for the | SolutionInn", "meta_keywords": "1,july,2011,identifiable,assets,liabilities,summer,ltd,recorded,fair,value,carrying", "question_title_h1": "i.At 1 July 2011, all the identifiable assets and liabilities of Summer Ltd were recorded at fair value except for the following assets: Carrying amount", "question_title": "i.At 1 July 2011, all the identifiable assets and liabilities of Summer", "question_title_for_js_snippet": "i At 1 July 2011, all the identifiable assets and liabilities of Summer Ltd were recorded at fair value except for the following assets Carrying amount Fair value Land $62,000 $80,000 Machinery (cost 135,000) 105,000 120,000 Receivable 42,000 36,000 The machinery has an expected life of 10 years, with benefits being received evenly over that period Differences between carrying amounts and fair values are adjusted on consolidation The land on hand at 1 July 2011 was sold on 1 March 2013 for $84,000 Any valuation reserve in relation to the land is transferred on consolidation to retained earnings By 30 June 2012, receivables had all been collected ii Perth Ltd uses the full goodwill method The fair value of the non controlling interest at 1 July 2011 was $66,000 iii Opening inventory of Summer Ltd includes unrealised profit of $5,000 on inventory sold by Perth Ltd It was all sold by Summer Ltd during the year iv During the year, intragroup sales by Summer Ltd to Perth Ltd were $80,000 The mark up on cost of all sales was 25 At 30 June 2016, Perth Ltds inventory included $35,000 of items acquired from Summer Ltd v On 1 January 2016, Summer Ltd sold an item of inventory to Perth Ltd for $18,000 at a profit before tax of $3000 Perth Ltd had treated this item as an addition to its machinery and depreciated at 10 p a straight line vi On 1 April 2016, Perth Ltd sold $15,000 worth of inventory to Summer Ltd The cost of this inventory was $9000 By 30 June 2016, Summer Ltd had sold 60 of the inventory to outside entities vii Some of the items manufactured by Summer Ltd are used as machinery by Perth Ltd One of the machinery items held by Perth Ltd at 30 June 2016 was purchased from Summer Ltd on 1 January 2015 It had cost Summer Ltd $17,500 to manufacture this item and was sold to Perth Ltd for $25,000 Perth Ltd depreciates such items at 10 p a on cost viii Management fees derived by Perth Ltd were all from Summer Ltd and represented charges made for administration ix The tax rate is 30 Prepare the consolidation journal entries Note C onsolidation worksheet and all calculation should be presented in the same format as used in Leo, Hoggett and Sweeting, 10ed textbook 2103AFE Company Accounting Group Assignment Trimester 1, 2017 This assignment requires students to prepare consolidated financial statements in accordance with appropriate Australian Accounting Standards and Corporate Legislation DUE DATES Assignment SPARK ratings 5 00pm Friday 19th May 2017 5 00pm Friday 2nd June 2017 TOTAL WEIGHTING 20 This is calculated as follow Part A (by GROUP) 10 Group mark multiplied by SPA factor Part B (by INDIVIDUAL) 10 Individual mark A group mark will be allocated for technical content OUT OF 10 This will be adjusted for each student using the SPA factor generated by SPARK An adjusted mark will be calculated for each individual student therefore, each member of the group may receive a different fnal assessment percentage SPARK ratings will be included in relation to the individual mark awarded for Group Assignment only REQUIREMENTS 1 Students are required to complete Group Assignment in a group 2 All answers must use proper English expression and grammar Students must complete the Self Peer Assessment Resource Kit (SPARK) Ratings of the group Final ratings must be completed by the due date shown above Otherwise a penalty of 20 will be given 3 The assignment is to be submitted on line by the due date SUBMISSION 1 Detailed instructions on how to submit the assignment is available in the Course Home Tab Assignment Submission on Learning Griffith 2 The assignment must be word processed using Microsoft Word or Excel, Times New Roman, 12point font, double spaced 3 Part A is to be submitted by the group (only one member submits the assignment on behalf of the group) Part B is to be submitted by the individual 4 Each group member must complete the electronic assignment cover sheet in assignment on L G 5 Marks may be deducted if any of the requirements (1 4) or submission instructions (1 3) are not completed 1 Part A (by group) Consolidation Case Study Perth Ltd and Summer Ltd Perth Ltd acquired 80 of the share capital of Summer Ltd on 1 July 2011 The following equity balances appeared in the records of Summer Ltd at the date of acquisition $210,000 Share capital (210,000 shares) 6,100 General reserve 75,000 Retained earnings Financial information at 30 June 2016 of Perth Ltd and its subsidiary company, Summer Ltd, is shown below Perth Ltd Summer Ltd $ $ Sales revenue Cost of sales 708,000 (273,000) 492,000 (178,500) 435,000 313,500 10,500 16,800 10,500 Administrative expenses Distribution expenses Depreciation on machinery Finance expenses Other expenses 462,300 (31,500) (189,000) (31,500) (27,600) (29,400) 324,000 (16,800) (126,000) (31,500) (12,000) (25,200) Total operating expenses Profit before tax Income tax expense (309,000) 153,300 (52,500) (211,500) 112,500 (34,500) Profit after tax Retained earnings (1 7 2015) 100,800 105,000 78,000 94,500 Transfer to general reserve Interim dividend paid Final dividend declared 205,800 (6,300) (31,500) (37,800) 172,500 (21,000) (42,000) Retained earnings (30 6 2016) General reserve Other components of equity (1 7 2015) Share capital (75,600) 130,200 105,000 27,300 630,000 (63,000) 109,500 36,000 21,000 210,000 Gross Profit Other revenue Debenture interest Management fees Dividend from Summer Ltd 2 Liabilities Debentures Deferred tax liability Current tax liability Dividend payable Other current liabilities Cash and cash equivalents Trade receivables Inventory Debentures in Perth Ltd Shares in Summer Ltd Machinery (cost) Accumulated depreciation machinery Other depreciable assets Accumulated depreciation Deferred tax asset Land 255,000 52,500 37,800 189,000 60,000 14,700 35,700 42,000 25,200 1,426,800 107,100 68,250 189,000 270,000 252,000 (136,500) 159,600 (84,000) 179,250 422,100 554,100 6,000 40,200 58,500 105,000 214,200 (115,500) 115,500 (52,500) 63,000 119,700 1,426,800 554,100 Additional information i At 1 July 2011, all the identifiable assets and liabilities of Summer Ltd were recorded at fair value except for the following assets Carrying amount Fair value Land $62,000 $80,000 105,000 120,000 Machinery (cost 135,000) 42,000 36,000 Receivable The machinery has an expected life of 10 years, with benefits being received evenly over that period Differences between carrying amounts and fair values are adjusted on consolidation The land on hand at 1 July 2011 was sold on 1 March 2013 for $84,000 Any valuation reserve in relation to the land is transferred on consolidation to retained earnings By 30 June 2012, receivables had all been collected ii Perth Ltd uses the full goodwill method The fair value of the non controlling interest at 1 July 2011 was $66,000 iii Opening inventory of Summer Ltd includes unrealised profit of $5,000 on inventory sold by Perth Ltd It was all sold by Summer Ltd during the year iv During the year, intragroup sales by Summer Ltd to Perth Ltd were $80,000 The mark up on cost of all sales was 25 At 30 June 2016, Perth Ltd's inventory included $35,000 of items acquired from Summer Ltd v On 1 January 2016, Summer Ltd sold an item of inventory to Perth Ltd for $18,000 at a profit before tax of $3000 Perth Ltd had treated this item as an addition to its machinery and depreciated at 10 p a straight line 3 vi On 1 April 2016, Perth Ltd sold $15,000 worth of inventory to Summer Ltd The cost of this inventory was $9000 By 30 June 2016, Summer Ltd had sold 60 of the inventory to outside entities vii Some of the items manufactured by Summer Ltd are used as machinery by Perth Ltd One of the machinery items held by Perth Ltd at 30 June 2016 was purchased from Summer Ltd on 1 January 2015 It had cost Summer Ltd $17,500 to manufacture this item and was sold to Perth Ltd for $25,000 Perth Ltd depreciates such items at 10 p a on cost viii Management fees derived by Perth Ltd were all from Summer Ltd and represented charges made for administration ix The tax rate is 30 Prepare the consolidation journal entries Note Consolidation worksheet and all calculation should be presented in the same format as used in Leo, Hoggett and Sweeting, 10ed textbook 4", "question_description": "\"image

i.At 1 July 2011, all the identifiable assets and liabilities of Summer Ltd were recorded at fair value except for the following assets:<\/p>

<\/p>

<\/p>

Carrying amount<\/strong><\/p>

<\/p>

Fair value<\/strong><\/p>

Land<\/p>

<\/p>

$62,000<\/p>

<\/p>

$80,000<\/p>

Machinery (cost 135,000)<\/p>

<\/p>

105,000<\/p>

<\/p>

120,000<\/p>

Receivable<\/p>

<\/p>

42,000<\/p>

<\/p>

36,000<\/p>

<\/p>

<\/p>

The machinery has an expected life of 10 years, with benefits being received evenly over that period. Differences between carrying amounts and fair values are adjusted on consolidation. The land on hand at 1 July 2011 was sold on 1 March 2013 for $84,000. Any valuation reserve in relation to the land is transferred on consolidation to retained earnings. By 30 June 2012, receivables had all been collected.<\/p>

<\/p>

ii.Perth Ltd uses the full goodwill method. The fair value of the non-controlling interest at 1 July 2011 was $66,000.<\/p>

<\/p>

iii.Opening inventory of Summer Ltd includes unrealised profit of $5,000 on inventory sold by Perth Ltd. It was all sold by Summer Ltd during the year.<\/p>

<\/p>

iv.During the year, intragroup sales by Summer Ltd to Perth Ltd were $80,000.The mark-up on cost of all sales was 25%. At 30 June 2016, Perth Ltds inventory included $35,000 of items acquired from Summer Ltd. <\/p>

<\/p>

v.On 1 January 2016, Summer Ltd sold an item of inventory to Perth Ltd for $18,000 at a profit before tax of $3000. Perth Ltd had treated this item as an addition to its machinery and depreciated at 10% p.a. straight-line. <\/p>

vi.On 1 April 2016, Perth Ltd sold $15,000 worth of inventory to Summer Ltd. The cost of this inventory was $9000. By 30 June 2016, Summer Ltd had sold 60% of the inventory to outside entities.<\/p>

<\/p>

vii.Some of the items manufactured by Summer Ltd are used as machinery by Perth Ltd. One of the machinery items held by Perth Ltd at 30 June 2016 was purchased from Summer Ltd on 1 January 2015. It had cost Summer Ltd $17,500 to manufacture this item and was sold to Perth Ltd for $25,000. Perth Ltd depreciates such items at 10% p.a. on cost.<\/p>

<\/p>

viii.Management fees derived by Perth Ltd were all from Summer Ltd and represented charges made for administration.<\/p>

<\/p>

ix.The tax rate is 30%.<\/p>

<\/u><\/p>

<\/u><\/p>

Prepare the consolidation journal entries<\/span><\/p>

Note: C<\/strong>onsolidation worksheet and all calculation should be presented in the same format as used in Leo, Hoggett and Sweeting, 10ed textbook.<\/span><\/p>\"image 2103AFE Company Accounting Group Assignment Trimester 1, 2017 This assignment requires students to prepare consolidated financial statements in accordance with appropriate Australian Accounting Standards and Corporate Legislation. DUE DATES: Assignment: SPARK ratings: 5.00pm Friday 19th May 2017 5:00pm Friday 2nd June 2017 TOTAL WEIGHTING: 20% This is calculated as follow: Part A (by GROUP): 10% - Group mark multiplied by SPA factor* Part B (by INDIVIDUAL): 10% - Individual mark *A group mark will be allocated for technical content OUT OF 10%. This will be adjusted for each student using the SPA factor generated by SPARK. An adjusted mark will be calculated for each individual student; therefore, each member of the group may receive a different fnal assessment percentage. SPARK ratings will be included in relation to the individual mark awarded for Group Assignment only. REQUIREMENTS: 1. Students are required to complete Group Assignment in a group. 2. All answers must use proper English expression and grammar. Students must complete the Self & Peer Assessment Resource Kit (SPARK) Ratings of the group. Final ratings must be completed by the due date shown above. Otherwise a penalty of 20% will be given. 3. The assignment is to be submitted on-line by the due date. SUBMISSION: 1. Detailed instructions on how to submit the assignment is available in the Course Home Tab\/Assignment Submission on Learning@Griffith. 2. The assignment must be word-processed using Microsoft Word or Excel, Times New Roman, 12point font, double-spaced. 3. Part A is to be submitted by the group (only one member submits the assignment on behalf of the group). Part B is to be submitted by the individual. 4. Each group member must complete the electronic assignment cover sheet in \\\"assignment \\\"on L@G. 5. Marks may be deducted if any of the requirements (1-4) or submission instructions (1 -3) are not completed. 1 Part A (by group): Consolidation Case Study: Perth Ltd and Summer Ltd Perth Ltd acquired 80% of the share capital of Summer Ltd on 1 July 2011. The following equity balances appeared in the records of Summer Ltd at the date of acquisition: $210,000 Share capital (210,000 shares) 6,100 General reserve 75,000 Retained earnings Financial information at 30 June 2016 of Perth Ltd and its subsidiary company, Summer Ltd, is shown below. Perth Ltd Summer Ltd $ $ Sales revenue Cost of sales 708,000 (273,000) 492,000 (178,500) 435,000 313,500 10,500 16,800 10,500 Administrative expenses Distribution expenses Depreciation on machinery Finance expenses Other expenses 462,300 (31,500) (189,000) (31,500) (27,600) (29,400) 324,000 (16,800) (126,000) (31,500) (12,000) (25,200) Total operating expenses Profit before tax Income tax expense (309,000) 153,300 (52,500) (211,500) 112,500 (34,500) Profit after tax Retained earnings (1\/7\/2015) 100,800 105,000 78,000 94,500 Transfer to general reserve Interim dividend paid Final dividend declared 205,800 (6,300) (31,500) (37,800) 172,500 (21,000) (42,000) Retained earnings (30\/6\/2016) General reserve Other components of equity (1\/7\/2015) Share capital (75,600) 130,200 105,000 27,300 630,000 (63,000) 109,500 36,000 21,000 210,000 Gross Profit Other revenue: Debenture interest Management fees Dividend from Summer Ltd 2 Liabilities: Debentures Deferred tax liability Current tax liability Dividend payable Other current liabilities Cash and cash equivalents Trade receivables Inventory Debentures in Perth Ltd Shares in Summer Ltd Machinery (cost) Accumulated depreciation - machinery Other depreciable assets Accumulated depreciation Deferred tax asset Land 255,000 52,500 37,800 189,000 60,000 14,700 35,700 42,000 25,200 1,426,800 107,100 68,250 189,000 270,000 252,000 (136,500) 159,600 (84,000) 179,250 422,100 554,100 6,000 40,200 58,500 105,000 214,200 (115,500) 115,500 (52,500) 63,000 119,700 1,426,800 554,100 Additional information i. At 1 July 2011, all the identifiable assets and liabilities of Summer Ltd were recorded at fair value except for the following assets: Carrying amount Fair value Land $62,000 $80,000 105,000 120,000 Machinery (cost 135,000) 42,000 36,000 Receivable The machinery has an expected life of 10 years, with benefits being received evenly over that period. Differences between carrying amounts and fair values are adjusted on consolidation. The land on hand at 1 July 2011 was sold on 1 March 2013 for $84,000. Any valuation reserve in relation to the land is transferred on consolidation to retained earnings. By 30 June 2012, receivables had all been collected. ii. Perth Ltd uses the full goodwill method. The fair value of the non-controlling interest at 1 July 2011 was $66,000. iii. Opening inventory of Summer Ltd includes unrealised profit of $5,000 on inventory sold by Perth Ltd. It was all sold by Summer Ltd during the year. iv. During the year, intragroup sales by Summer Ltd to Perth Ltd were $80,000. The mark-up on cost of all sales was 25%. At 30 June 2016, Perth Ltd's inventory included $35,000 of items acquired from Summer Ltd. v. On 1 January 2016, Summer Ltd sold an item of inventory to Perth Ltd for $18,000 at a profit before tax of $3000. Perth Ltd had treated this item as an addition to its machinery and depreciated at 10% p.a. straight-line. 3 vi. On 1 April 2016, Perth Ltd sold $15,000 worth of inventory to Summer Ltd. The cost of this inventory was $9000. By 30 June 2016, Summer Ltd had sold 60% of the inventory to outside entities. vii. Some of the items manufactured by Summer Ltd are used as machinery by Perth Ltd. One of the machinery items held by Perth Ltd at 30 June 2016 was purchased from Summer Ltd on 1 January 2015. It had cost Summer Ltd $17,500 to manufacture this item and was sold to Perth Ltd for $25,000. Perth Ltd depreciates such items at 10% p.a. on cost. viii. Management fees derived by Perth Ltd were all from Summer Ltd and represented charges made for administration. ix. The tax rate is 30%. Prepare the consolidation journal entries Note: Consolidation worksheet and all calculation should be presented in the same format as used in Leo, Hoggett and Sweeting, 10ed textbook. 4", "transcribed_text": "", "related_book": { "title": "College Accounting", "isbn": "1285892070, 538489669, 9781111790301, 978-1285892078, 9780538489669, 1111790302, 978-0538745192", "edition": "20th Edition", "authors": "Heintz and Parry", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/73.jpg", "uri": "\/textbooks\/college-accounting-20th-edition-73", "see_more_uri": "" }, "free_related_book": { "isbn": "0415208017", "uri": "\/textbooks\/reflections-on-the-classical-canon-in-economics-essays-in-honour-of-samuel-hollander-1st-edition-978-0415208017-287261", "name": "Reflections On The Classical Canon In Economics Essays In Honour Of Samuel Hollander", "edition": "1st Edition" }, "question_posted": "2024-06-15 14:13:06", "see_more_questions_link": "\/study-help\/questions\/business-banking-2021-September-12", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/phoenix-tool-company-and-denver-tool-company-have-had-a", "description": "Phoenix Tool Company and Denver Tool Company have had a very similar record of earnings performance over the past eight years. 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