Question
Pls help me to do this question!!! thank you so much Prepare a consolidation journal entry to adjust the data for each of the following
Pls help me to do this question!!! thank you so much Prepare a consolidation journal entry to adjust the data for each of the following independent situations. Assume the financial year ends on 30 June in each case. (a) On 12 June, a wholly owned subsidiary announced a dividend from pre-control equity, but will not record it until the payment date in July. The parent recorded the dividend at the announcement date. AASB 127 38A is applicable. (b) Parent paid $45 000 on 30 June for all the shares of Subsidiary, whose equity at that date is share capital $36000 and retained profits $12 000. However, assets of Subsidiary are not all recorded at their fair value. The discrepancies are:
Carrying Value | Fair Value | |
Investment | 18000 | 24000 |
Account Receivable | 7000 | 9600 |
Land | 13000 | 6000 |
Brands | Nill | 3000 |
(c) Subsidiary has made a loan of $80 000 to Parent, repayable in five years. The annual loan interest is 12% payable each quarter on the twentieth day of September, December, March and June. Interest for the latest quarter is due for payment, and has been recorded by Subsidiary as a receivable but has not been recorded by Parent. (d) Subsidiary X sold goods to Subsidiary Z on credit for $53000. Subsidiary X recorded this transaction on shipment on 27 June 20X5. By 30 June, Subsidiary Z had not received the goods or recorded the transaction.
(e) Parent applies a 45% accelerated depreciation to its PC computers, and requires this policy to be applied also in the consolidation. Subsidiary, however, has applied straight-line depreciation to its PC computers. Subsidiarys computers are all two years old at 30 June, and their cost was $153 000. Expectations at purchase were that the PCs have a useful life of three years and no residual value.
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