Answered step by step
Verified Expert Solution
Question
1 Approved Answer
it's a complete question it is a complete question please solve this A Ltd and B Ltd acquired their shareholdings of 60% of B Ltd
it's a complete question
it is a complete question please solve this
A Ltd and B Ltd acquired their shareholdings of 60% of B Ltd and 100% of C Ltd respectively on 1 July 2017, at wh shareholders' equity was as follows: B Ltd C Ltd $ $ Share Capital (1$ per share) 75,000 20,000 Reserves 10,000 1,000 Retained Earnings 16,000 4,500 The summarized accounts of the three companies as at 30 June 2019 are as follows: A Ltd BLtd C Ltd $ $ Current Liabilities 26,000 17,750 5,250 Debentures 100,000 25,000 Share capital 100,000 75,000 20,000 Reserves 30,000 16,250 2,250 39,000 38,000 14,000 Retained earnings Plant and Machinery 80,000 23,000 20,000 Current Assets 90,000 19,500 31,500 Inonton on hand Gonna Pro 1on Debentures in C Ltd 120,000 Shares in B Ltd 65,000 Shares in C Ltd 52,000 The directors had adopted the partial goodwill method and applied the impairment a goodwill write-down of $3,090 is required for consolidation purposes as at 30 June B Ltd and C Ltd respectively. The cumulative goodwill impairment write-downs for p $440 and $2,650 in B Ltd and C Ltd respectively. Inventory on hand at 30 June 2019 group and incorporated in the books at invoice prices which exceeded costs. Goods above cost, and goods supplied by C Ltd to B Ltd were at $1,200 above cost. Goods above cost. The tax rate is 30%. Required: a) Prepare consolidation journal entries at the acquisition date, and as at 30 June main chosaling both direct and A Ltd and B Ltd acquired their shareholdings of 60% of B Ltd and 100% of C Ltd respectively on 1 July 2017, at wh shareholders' equity was as follows: B Ltd C Ltd $ $ Share Capital (1$ per share) 75,000 20,000 Reserves 10,000 1,000 Retained Earnings 16,000 4,500 The summarized accounts of the three companies as at 30 June 2019 are as follows: A Ltd BLtd C Ltd $ $ Current Liabilities 26,000 17,750 5,250 Debentures 100,000 25,000 Share capital 100,000 75,000 20,000 Reserves 30,000 16,250 2,250 39,000 38,000 14,000 Retained earnings Plant and Machinery 80,000 23,000 20,000 Current Assets 90,000 19,500 31,500 Inonton on hand Gonna Pro 1on Debentures in C Ltd 120,000 Shares in B Ltd 65,000 Shares in C Ltd 52,000 The directors had adopted the partial goodwill method and applied the impairment a goodwill write-down of $3,090 is required for consolidation purposes as at 30 June B Ltd and C Ltd respectively. The cumulative goodwill impairment write-downs for p $440 and $2,650 in B Ltd and C Ltd respectively. Inventory on hand at 30 June 2019 group and incorporated in the books at invoice prices which exceeded costs. Goods above cost, and goods supplied by C Ltd to B Ltd were at $1,200 above cost. Goods above cost. The tax rate is 30%. Required: a) Prepare consolidation journal entries at the acquisition date, and as at 30 June main chosaling both direct andStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started