Question
On 1 July 2016, Ma Ltd acquired all the issued shares of Pa Ltd for $326,000. The shares are acquired ex-dividend. At this date, the
On 1 July 2016, Ma Ltd acquired all the issued shares of Pa Ltd for $326,000. The shares are acquired ex-dividend. At this date, the equity of Pa Ltd was recorded as follows:
| Share capital | $340,000 |
| General Reserve | $391,000 |
| Retained Earnings | $215,000 |
| Dividend Payable | $43,000 |
All the identifiable assets and liabilities were recorded at amounts equal to their fair values.
The consolidation worksheet entry at 30 June 2018 is as follows:
| Account Name | Debit | Credit |
| Share Capital | $340,000 |
|
| General Reserve | $391,000 |
|
| Retained Earnings | xxx | |
| Investment in Pa Ltd |
| yyy |
Enter the amount of opening retained earnings (xxx) at 30 June 2018 in the answer block below:
Step 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
Surviving The OSHA Audit Common Sense Solutions To Your Most Feared OSHA Compliance Issues
Authors: David A. Casavant
1st Edition
0998743704, 978-0998743707
