Below are the Statements of Profit or Loss and Statements of Changes in Equity of Jupiter Bha and Mars Bhd for the year ended 31 December 2018. Statement of Pront or Loss for the year ended 31 December 2018 Jupiter Bhd RM Mars Bhd RM 3,790,000 (277,300) 3,512,700 Sales 4,750,000 (1,139,000) 3,611,000 Cost of sales Gross profit Profit on sale of equipment Other Income Seling expenses Administration expenses Finance cost Operating profit before tax ton Profit the year 116,320 (150,000) (100,000) (30,000) 3,447,320 (295,000) 3.152,320 8,000 3,000 (125,000) (30,000) 20,000) 3,348,700 (115.550) 3,233,150 statement of Changes In Equity for the year ended 31 December 2018 (extract) Jupiter Bhd RM Mara Bhd RM Retained profit brought forward Proft for the year Ordinary divdends Preference dividends Transfer to general reserves Retained profit carried forward 127,500 3,152,320 (232,500) (30,000) (50,000) 2,967 320 40,000 3,233,150 (137,600) (24,000) 3.111,550 Additional Information: 1. The paid-up capital of both companies are as follows: Company Name 6% Cumulative Preference shares Ordinary shares RM 2,000,000 800,000 RM Jupiter Bhd Mars Bhd 500,000 400.000 2. Jupiter Bhd acquired 70% of the ordinary shares and 50% of the Preference Shares of Mars Bhd on 2 January 2018 for RM450,600 and RM200,000 respective 3. Sales of Jupiter Bhd Include sales to Mars Bhd amounted to RM140,000. Jupiter Bhd sold the goods to Mars Bhd at cost plus of 25%. At the end of the year, RM60,000 of these goods remained unsold. 4. As at 31 December 2018, goodwill on consolldation was Impalred by 20%. 5. During the year, Mars Bhd sold equipment to Jupiter Bhd at RM8,000 above It carrying value. Depreciation has been provided at 20% on carylng value on yeariy basis. 6. Both companies have recorded the ordinary and preference dividends deciared before the year ended 31 December 2018. However, Jupiter Bhd has only recorded ordinary dividend recelvabie from Mars Bhd. Required: Prepare the Consoldated Statement of Profit or Loss of Jupiter Bhd for the year ended 31 December 2018 (show all workings). a. b. Prepare the extract of the Statement of Changes in Equity of Jupiter Bhd for the year ended 31 December 2018 showing the retained profit and non-controling Interest column only. (20 marke) QUESTION 2 On 1 July 2017, Venus Bhd acqulred 400,000 units ordinary shares, 5,000 6% cumulative preference shares and RM15,000 10% debentures of Mercury Bhd. On that date, the retalned eamings of Mercury Bhd was RM100,000. The summarized statements of Profit or Loss and statements of changes in equity (extract) of Venus Bhd and Mercury Bhd for the year ended 30 June 2019 are as folows: statementa of Pront or Loss for the year ended 30 June 2019 Mercury Bhd RM 876,800 (679,400) 197,400 (97,200) (5,000) Venus Bhd RM Revenue 1,526,700 Cost of sales (917,700) 609,000 Gross profit Operating expenses Finance costs Investment income (467.800) (22,000) 98,000 217,200 (42,500) 174,700 Profit before taxatlon Income tax expense Profit for the year 95,200 (30,400) 64,800 Statements of Changes in Equity for the year ended 30 June 2019 (extract Venus Bhd RM Mercury Bhd RM 760,000 174,700 (30,000) (8,000) (20,000) 876,700 Retalned profit brought forward Profit for the year Interim dividends - Ordinary 240,000 64,800 (6,000) (3,000) (10,000) 285,800 - Preference Transfer to general reserve Retalned profit camied forward Additional Information: 1. The issued share capital of Venus Bhd and Mercury Bhd were as follows: Ordinary 8% Cumulative 6% Cumulative Company Name 10% shares Preference shares Preference ahares Debentures Units Units Units RM Venus Bhd Mercury Bhd 1,800,000 200,000 500,000 100,000 50,000 2. Land and bullding of Mercury Bhd have the following value: Land Bullding RM RM Fair value as at 1 July 2017 Carrying value as at 30 June 2017 470,000 350,000 452,000 350,000 Remalning useful Ives of the bullding on the date of acquisition was 20 years. Bulding is depreciated on straight line method over its useful Ilves, and to be charged on yearly basis. 3. Investment income of Venus Bhd Includes profit from sale of equipment to Mercury Bhd for RM14,000 and dividends received from Mercury Bhd of RM6,300. On the date of disposal, the remaining useful Ives of the equipment Is 5 years. Depreciation of the equipment is calculated on straight ine method over Its useful Ilves, and to be charged on yearty basis. 4. Finance costs of Mercury Bhd are al debenture Interest expense. Venus Bhd has not yet recorded the debenture Interest receivable from Mercury Bhd. 5. Mercury Bhd sold goods to Venus Bnd at a mark-up of 25% on cost. During the year, Mercury Bhd recorded sales of RM49,500 to Venus Bhd. As at the year-end, Venus Bhd still heid one third (1/3) of these goods. 6. The directors of Venus Bhd and Mercury Bhd have declared the final preference dividend on 20 June 2019 but not yet recorded by both companles. 7. Goodwll on consolldation was Impaired by RM10,000 as at 30 June 2019. Required: a. Consoldated Statement of Profit or Loss of Venus Bhd and its subsidlary Mercury Bnd for the year ended 30 June 2019. b. Consoldated Statement of Changes in Equity (extract) for the year ended 30 June 2019 showing the group retalned profit and non-controlling Interest only. (20 marks)