Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Part B: (24 Marks) Global Ltd owns all the share capital of Local Ltd. The following intragroup transactions took place during the periods ended 30

Part B: (24 Marks)

Global Ltd owns all the share capital of Local Ltd. The following intragroup transactions took place during the periods ended 30 June 2023 and 30 June 2024:

(a) During the period ended 30 June 2023, Local Ltd paid an interim dividend of $30 000 out of pre-acquisition profits. As a result, the investment in Local Ltd is considered to be impaired by $30 000.

(b) On 30 June 2023, Local Ltd declared a final dividend of $35 000 out of post-acquisition profits.

(c) During the period ended 30 June 2024, Local Ltd paid an interim dividend of $40 000 out of post-acquisition profits.

(d) On 30 June 2024, Local Ltd declared a final dividend of $45 000 out of post-acquisition profits.

Required:

Prepare adjusting journal entries for the consolidation worksheet at 30 June 2023 and 30 June 2024. In relation to the intragroup transactions.

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

Auditing Cases An Interactive Learning Approach

Authors: Mark S Beasley, Frank A. Buckless, Steven M. Glover, Douglas F Prawitt

7th Edition

0134421825, 9780134421827

More Books

Students also viewed these Accounting questions

Question

3 What are the four major aspects of an organisation culture?

Answered: 1 week ago

Question

2 What does the term organisation culture mean?

Answered: 1 week ago