Nick Ltd acquired 100% of the issued capital of Wing Ltd on 1 July 2011 for $270000. The statements of financial position of the companies immediately after the acquisition are provided below. All assets have been reported following fair value.

Statement of Financial Position

For the year ended 1 July 2011

Nick Ltd Wing Ltd

$ $

Shareholders equity

Share capital 450,000 180,000

General reserve 45,000 25,000

Retained earnings 140,000 20,000

Total shareholders equity 635,000 225,000

Assets

Current assets

Cash at Bank 50,000 30,000

Accounts Receivable 20,000 10,000

Inventory 100,000 25,000

170,000 65,000

Non-current assets

Investment in Wing Ltd 270,000 ----

Land 250,000 200,000

Plant & Equipment 100,000 80,000

620,000 280,000

Total assets 790,000 345,000

Liabilities

Current liabilities

Accounts Payable 40,000 10,000

Interest Payable 15,000 8,000

55,000 18,000

Non-current liabilities

Bank loan 100,000 102,000

Total liabilities 155,000 120,000

Net assets 635,000 225,000

Required

1. Calculate Goodwill (show workings)

2. Prepare consolidation journal entry at the date of acquisition.

3. Prepare consolidation worksheet.

4. Prepare the consolidated statement of financial position as at 1 July 2011 (immediately after the acquisition).