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On 1/1/2013, the Aluminum Sectors Operator Company purchased 90% of the shares of Al-Fayhaa Plastic Industries Company by issuing 30,000 shares of its shares, knowing

On 1/1/2013, the Aluminum Sectors Operator Company purchased 90% of the shares of Al-Fayhaa Plastic Industries Company by issuing 30,000 shares of its shares, knowing that the nominal value of the Aluminum Sectors Operator Company’s share is dinars and the market value of the shares is 5 dinars, and the Aluminum Sectors Operator Company has paid an amount of 5,000 Dinars in cash, commissions, brokerage, auditors and lawyers’ fees to complete the deal, and 4000 dinars in cash for printing and issuing shares. As a result of the sector operator Aluminum Company's purchase of the shares of Al-Fayhaa Plastic Industries Company, a holding and dependent relationship has emerged between the two companies. The budget of the two companies, immediately before the purchase, appeared as follows:

Al-Fayhaa Plastic Industries Company
Fair valueBook valueAluminum Segment Operator Company
2500025000190000cash
4000045000130000Receivables
6200060000180000goods
4500040000100000Machines
300001000060000cars
202000180000660000total assets
2200030000210 000Accounts Payable
120000350000capital
2000075000additional capital
1000025000Retained earnings
180000660000Total liabilities and equity


The Aluminum Sectors Operator Company followed the acquisition method to prove the investment in the shares of the subsidiary company, Al-Fayhaa Plastic Industries Company. Required :


1. Calculating the cost of purchasing shares of Al-Fayhaa Plastic Industries Company.


2. Proof of the necessary daily entries in the books of the aluminum sectors operator company.


3. Preparing the budget of the aluminum sector operator company after purchasing the shares of Al-Fayhaa Plastic Industries Company directly.

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