Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 1 (Exercise 26.15) CONSOLIDATION WORKSHEET ENTRIES On 1 Jan 2008, Platypus Lid acquired 7595 of the shares of Wombat Lid for $40,000. appeared In

image text in transcribed
image text in transcribed
Question 1 (Exercise 26.15) CONSOLIDATION WORKSHEET ENTRIES On 1 Jan 2008, Platypus Lid acquired 7595 of the shares of Wombat Lid for $40,000. appeared In the records of Wombat Lod at this dowe: Shave Capital $20,000 General Reserve $2.000 Hecained Earnings $10,000 At 1 Jan 2008, all the identifiable assess and liabilities of Wombat Lod were recorded the following Carrying amount FV Machinery (ook $36 000) $30,000 $40.000 Inventory 16,000 20.000 20,000 18.COO The machinery had a remaining useful life of 5 years. The machinery was sold by W 2012 for $1,000. By 31 Dec 2008, receivables had all been collected and Inventory s For the year ended 31 Dec 2012, the following information Is available: (a) Intra-group sales were Wombat Lid co Platypus Lid - $40,000. The mark-up o 2586. At 31 Dec 2012, Platypus Lid sold 9595 of the Inventory acquired froms (b) At 1 Jan 2012, inventory of Platypus Lid Included goods of $1,000 resulting 2011 of non-cumem assets by Womb: Lid at a profit of $200. These Incis wy on 1 March 2012. This class of non-current assets is depreciated using a 1016 straight-line banks. (c) On 1 July 2012, Wombat Lid sold an hem of plant to Platypus Lid for $2,000 plant assets, Wombat Lod applies a 1095 p.a. straight-line depreciation race, an 2.596 p.a. straight -line method. [d') Financial Information for the year ended 31 Dec 2012 Includes the following: Share Capital $20,000 Cencal Reserve 2.000 RE (1 Jan 2012) 20,000 Profit for the year 15,600 INlvidend Appropriation: 12,000 Dividend paid 800 Dividend unpald 4 00 RE (31 Dec 2012] 23.600 Asset Revaluation Reserve (1 Jan 2012) 2000 Gains on property revaluation (an OCI for the year) 500 Asset revalanion Reserve (31 Dec 2012) 2.500 Requlord Prepare the consolidation worksheet catries for the proparadon of the consolida of Platypus Lod at 31 Dec 2012 using the pantal goodwill method. 2 Prepare the carries that would change in requirement 1 above if the fall goodwit The fair value of the non-controlling inerow at 1 Jan 2008 was $12 900

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_2

Step: 3

blur-text-image_3

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

Introduction to Managerial Accounting

Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan

5th Canadian edition

77429494, 1259105709, 1260480798, 978-1259105708

More Books

Students also viewed these Accounting questions

Question

If X has distribution function F(t) = 0, t Answered: 1 week ago

Answered: 1 week ago

Question

The role of life: It consists of your own service to yourself.

Answered: 1 week ago