Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 15 0.5 pts Patsy Ltd acquired 100% of Lampard Ltd on 1 July 2020. At acquisition date, Lampard Ltd had the following items: -
Question 15 0.5 pts Patsy Ltd acquired 100% of Lampard Ltd on 1 July 2020. At acquisition date, Lampard Ltd had the following items: - Retained earnings $50 000 - Share capital $80 000 - Consolidation revaluation reserve $100 000 In the year following the acquisition, Lampard Ltd paid a bonus share dividend of $33 000 out of pre-acquisition retained earnings. The following consolidation adjustment is needed in the consolidation worksheet for 30 June 2021: Dr. Share capital $33 000 Cr. Bonus dividend paid $33 000 Dr. Bonus dividends $33 000 Cr. Share capital $33 000 Dr. Capitalised profit reserve $33 000 Cr. Bonus dividend paid $33 000 Dr. Retained earnings $33 000 Cr. Capitalised profit reserve $33 000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started