Swift Co. had post-closing trial balances on September 30 20X0, as follows:

Items	Debit ($)	Credit ($)
Cash	[X1]
Short-term investments	15,200
Trade receivables	30,000
Inventories	22,000
Non-current assets	46,500
Bank		5,000
Trade payables		40,000
12% Loan notes		20,000
Ordinary shares (par value: 1$)		100,000
Retained earnings		20,000
Revaluation surplus		5,000
Wages and salaries		10,000
Tax payables		3,500
Accruals		200
Total	[X2]	203,700

The following information for transactions from October to December 20X0 are available:

1. Cash purchase: $45,000, Credit purchase: $80,000

Inventory at 31 December 20X0 was valued at $30,000 based on its original cost. However,

$10,000 of this inventory has been obsolete and the directors have agreed to sell it in January 20X1 for a cash price of $6,000.

At December 31, 20X0, outstanding trade payables were $50,000

2. Total sales: $250,000. At December 31, 20X0, trade receivables were $50,000. Payment discounts allowed: $11,000
3. Wages and salaries expense incurred: $15,000. Wages and salaries outstanding for the year ended 31 Dec 20X0: $5,000
4. Swift was exempted from income tax in the fourth quarter of 20X0.
5. On January 10^th 20X1, one customer of Swift who owed $2,000 declared bankruptcy.
6. Telephone and other expenses incurred and paid by cash: $9,000
7. Loan notes were issued on 01 September 20X0. Swift paid loan note interest for the first 6 months at 31 December 20X0, by cash.
8. Swift made a right issue of 1 share for every 10 held at a premium of 40 cents per share.

9. Dividends paid amounted to $9,000
10. The following information relates to PPE:

	Cost ($)	Accumulated Depreciation (30/9/X0) ($)	Carrying amount ($)
Building	42,000	12,000	30,000
Machinery	20,000	6,000	14,000
Furniture	8,000	5,500	2,500
Total	70,000	23,500	46,500

1. The building was depreciated 10% at cost annually
2. Machinery and furniture had no residual value, 5 years of useful life, and were depreciated on the basis of the straight-line method
3. On 31/10/20X0, Swift acquired a vehicle of $27,000, the registration fee was

$1,000. All payment was settled by cash. The expected residual value was $4,000. The vehicle was depreciated at 20% per annum using the reducing balance method.

4. On 31/12/20X0, Swift decided to value its building to $55,000.

Required:

1. Give appropriate information in X1, X2 (10 marks)
2. Make accounting entries for those transactions above (Show your workings). (35 marks)
3. Prepare: (for internal use):
   1. The Post-Closing Trial Balance at December 31^st 20X0 (10 marks)
   2. The statement of financial position as of December 31^st 20X0 (10 marks)
4. On 01 January 20X1, Swift Co. acquired X3 % of ordinary shares of Jennifer Co. Swift partly owned Jennifer and achieved the control. The market value of Jennifer’s share at the acquisition date was ($) X4.
5. Give appropriate information in X3, X4 
6. Calculate the NCI and Goodwill at the acquisition date
7. Prepare the consolidated statement of financial position as at acquisition date? 

Additional information: The statement of financial position of Jennifer Co. at 01 January 20X1 was as follows:

JENNIFER CO

Statement of financial position as of 01 January 20X1

Assets

Non-current assets Current assets	82,000
Inventory	5,000
Trade receivables	15,000
Total assets	102,000
Equity and Liabilities Equity Share capital (1$)	60,000
Retained earnings	15,000

Other reserves	3,000
Liabilities
Trade payables	24,000
Total Equity and liabilities	102,000