Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

on 1 july 2019, gail Ltd acquired all the issued shares of Ray Ltd for $90000. the financial statements of Ray Ltd showed the equity

on 1 july 2019, gail Ltd acquired all the issued shares of Ray Ltd for $90000. the financial statements of Ray Ltd showed the equity of Ray Ltd at that date to be: share capital - 10000 $5shares $50000

General reserve - 25000

retained earnings 15000

all the assets and liabilities of ray ltd were recorded at amounts equal to their fair value at that date.

during the year ending 30 june 2020, ray ltd undertook the following actions. . on 1 jan 2020 transferred $5000from the general reserve existing at 1 july 2019 to retained earnings.

required (a) preparte the pre-acquisition entries at 1 july 2019

(b) prepare the pre-acquisition entries at 30 june 2020

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fire Extinguisher Log Book

Authors: Arahan Khan

1st Edition

B09TZKR5Z4, 979-8428924282

More Books

Students also viewed these Accounting questions