Prepare the consolidation worksheet for the preparation of the consolidated financial statements for the period ended 30 June 2017.

Prepare the consolidated statement of profit or loss and other comprehensive income, the consolidated balance sheet and the consolidated statement of changes in equity for the period ended 30 June 2017.

On 1 July 2013 Tony Ltd acquired all of the share capital (cum div)of Claire Limited for a consideration of $600,000 cash and a brand with a fair value of $50,000. At the date of acquisition Claire's accounts showed a dividend payable of $8,000. At acquisition date all the identifiable assets and liabilities were recorded at fair value with the exception of: ASSET Inventory Land Plant (less depn) Market Value 14,000 85,000 Book Value 10,000 80,000 16,000 (2000) 14,000 20,000 19,000 18,000 Acounts Receivable The inventory was all sold by 30/6/14. The remaining useful life of the plant is 5 years. The accounts receivable were collected by 30/6/14 for $18,000. The land was sold on 30/12/16 for $90000. The plant was on hand still at 30/6/17. At the date of acquisition the equity of Claire Ltd consisted of: Share Capital General Reserve Retained Earnings 420,000 90,000 70,000 Information from the trial balances of Claire Ltd and Tony Ltd at 30 June 2017 is presented overleaf. Additional Information 1. On 1 Jan 2017 Tony Ltd sold inventory to Claire Ltd costing $60,000 for $75,000. Half of this inventory was sold to outside parties by 30/6/17. 2. On 1 Jan 2016 Tony Ltd sold inventory costing $9000 to Claire Ltd for $16,000. Claire Ltd treats the item as equipment and depreciates it at 10% per annum. 3.On 1 July 2016 Tony sold plant to Claire for $21,000. The plant had cost Tony $24,000 on 1 July 2014 and it was being depreciated at 10% per annum. Claire regards the plant as inventory. The inventory was all sold by 30th July 2016. 4. At 1 July 2016 Tony Ltd held inventory that it had purchased from Claire Ltd on 1 June 2016 at a profit of $9000. All inventory was sold by 30 June 2017 5. Claire Ltd accrues dividends from Tony Ltd once they are declared. 6. Claire Ltd has earned $1200 in interest revenue in the 2017 financial year from Tony Ltd. 7. Claire Ltd has earned $3800 in service revenue in the 2017 financial year from Tony Ltd. 8. Assume a tax rate of 30%. Claire Ltd DR CR 952,500 Trial Balances As at 30 June 2017 Tony Ltd DR CR 1,247,100 788,000 161,000 17,000 3,500 9,300 4,000 456,000 72,000 8,000 4,800 5,600 6,000 5,600 1,200 5,500 7,000 5,000 7,000 97,120 118,480 190,820 61,280 10,000 12,000 3,000 2,500 Sales Revenue Cost of Sales Wages and Salaries Depreciation Expense Service Expense Interest Expense Other Expenses Gain on Sale of Non Current Asset Service Revenue Interest Revenue Dividend Revenue Income tax expense Retained Earnings 1/7/16 Dividend Paid Dividend Declared Share Capital General Reserve Other Equity 1/7/16 Gains on Financial Assets (OCI) Loan Payable to Tony Ltd Deferred Tax Liability Dividend Payable Shares in Claire Ltd Cash Inventories Other Current Assets Dividend Receivable Loan receivable from Claire Ltd Financial Assets Plant and Equipment Acc. Depreciation Plant Land 500,000 155,000 4,000 1,000 420,000 67,100 12,000 6,000 16,000 6,600 2,500 54,900 12,000 147,500 36,000 300,000 642,000 86,000 169,500 11,000 2,500 16,000 15,000 74,300 68,000 228,000 12,600 12,900 71,500 2,189,720 120,000 1,575,880 2,189,720 1,575,880 On 1 July 2013 Tony Ltd acquired all of the share capital (cum div)of Claire Limited for a consideration of $600,000 cash and a brand with a fair value of $50,000. At the date of acquisition Claire's accounts showed a dividend payable of $8,000. At acquisition date all the identifiable assets and liabilities were recorded at fair value with the exception of: ASSET Inventory Land Plant (less depn) Market Value 14,000 85,000 Book Value 10,000 80,000 16,000 (2000) 14,000 20,000 19,000 18,000 Acounts Receivable The inventory was all sold by 30/6/14. The remaining useful life of the plant is 5 years. The accounts receivable were collected by 30/6/14 for $18,000. The land was sold on 30/12/16 for $90000. The plant was on hand still at 30/6/17. At the date of acquisition the equity of Claire Ltd consisted of: Share Capital General Reserve Retained Earnings 420,000 90,000 70,000 Information from the trial balances of Claire Ltd and Tony Ltd at 30 June 2017 is presented overleaf. Additional Information 1. On 1 Jan 2017 Tony Ltd sold inventory to Claire Ltd costing $60,000 for $75,000. Half of this inventory was sold to outside parties by 30/6/17. 2. On 1 Jan 2016 Tony Ltd sold inventory costing $9000 to Claire Ltd for $16,000. Claire Ltd treats the item as equipment and depreciates it at 10% per annum. 3.On 1 July 2016 Tony sold plant to Claire for $21,000. The plant had cost Tony $24,000 on 1 July 2014 and it was being depreciated at 10% per annum. Claire regards the plant as inventory. The inventory was all sold by 30th July 2016. 4. At 1 July 2016 Tony Ltd held inventory that it had purchased from Claire Ltd on 1 June 2016 at a profit of $9000. All inventory was sold by 30 June 2017 5. Claire Ltd accrues dividends from Tony Ltd once they are declared. 6. Claire Ltd has earned $1200 in interest revenue in the 2017 financial year from Tony Ltd. 7. Claire Ltd has earned $3800 in service revenue in the 2017 financial year from Tony Ltd. 8. Assume a tax rate of 30%. Claire Ltd DR CR 952,500 Trial Balances As at 30 June 2017 Tony Ltd DR CR 1,247,100 788,000 161,000 17,000 3,500 9,300 4,000 456,000 72,000 8,000 4,800 5,600 6,000 5,600 1,200 5,500 7,000 5,000 7,000 97,120 118,480 190,820 61,280 10,000 12,000 3,000 2,500 Sales Revenue Cost of Sales Wages and Salaries Depreciation Expense Service Expense Interest Expense Other Expenses Gain on Sale of Non Current Asset Service Revenue Interest Revenue Dividend Revenue Income tax expense Retained Earnings 1/7/16 Dividend Paid Dividend Declared Share Capital General Reserve Other Equity 1/7/16 Gains on Financial Assets (OCI) Loan Payable to Tony Ltd Deferred Tax Liability Dividend Payable Shares in Claire Ltd Cash Inventories Other Current Assets Dividend Receivable Loan receivable from Claire Ltd Financial Assets Plant and Equipment Acc. Depreciation Plant Land 500,000 155,000 4,000 1,000 420,000 67,100 12,000 6,000 16,000 6,600 2,500 54,900 12,000 147,500 36,000 300,000 642,000 86,000 169,500 11,000 2,500 16,000 15,000 74,300 68,000 228,000 12,600 12,900 71,500 2,189,720 120,000 1,575,880 2,189,720 1,575,880