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need help with the question attached below thank you Question 5 (12 marks) Goldfinger Ltd had the following balance sheet Goldfinger Ltd Balance Sheet As
need help with the question attached below thank you
Question 5 (12 marks) Goldfinger Ltd had the following balance sheet Goldfinger Ltd Balance Sheet As at 31 Dec Assets Plant and equipment Cash/other assets Total net assets Equities Paid-up capital Retained profits Total equities 1 500000 1 300 00Q 1 700 000 1 100 000 Goldfinger Ltd purchased a 40 percent shareholding in Oddjob Ltd on 1 Jan for $90,000. This purchase resulted in Goldfinger having significant influence over Oddjob. Goldfinger owns 25 percent and had significant influence in Felix Ltd for last six years. Goldfinger Ltd does not have any share investments that confer control. On 1 January 20X8 Oddjob's assets were recorded at fair values and its owners' equity, totalling $180,000, was: share capital $130,000 retained profits $40,000 During the year Oddjob reported profit of $90,000 and revalued its assets upwards by $70,000. Dividend that Oddjob paid out of current year profit amounted to $60,000. During the year, Felix Ltd sold inventory to Oddjob and made profit of $80,000. Half of this inventory was still held by Oddjob Ltd by year-end. Required: Prepare journal entries for Goldfinger Ltd to record all events in for its investment in Oddjob Ltd. Use Australian Accounting Standards but classify income from associates in a way that would provide appropriate information regarding prudent distribution of cash flows. Use the separate recognition method
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