This is one question. Can any professor help me? Thanks!

QUESTION Powerful Bhd was incorporated 20 years ago to distribute warehouse equipment. It diversified its activities and expanded its operations by acquisition of shares in Sunrise Bhd in year 20x2 and in Glory Bhd in year 20x4, Accounts for all companies are made up to 31 December The financial statements for Powerful, Sunrise and Glory for the year ended 31 December 20x5 are as follows: 5,463 Statements of Profit or Loss for the year ended 31 December 20x5 Powerful Sunrise Glory RM'000 RM000 RM'000 Turnover 45,600 24,700 22,800 Less: Cost of sales 18,050 5,320 27,550 19,237 17,480 Less : Expenses 6,800 3,087 3.800 Operating profit 20,750 16,150 13,680 Less : Interest paid 325 Profit before tax 20,425 16,150 13,680 Less : Taxation 8,300 5,390 4,241 Profit after tax 12.125 10.760 9.439 Dividends paid Retained profit at 1 January 20x5 9,500 20,013 13,315 10,459 Glory RM000 Statements of Financial Position as at 31 December 20x5 Powerful Sunrise RM000 RM'000 ASSETS Non-Current Assets Property, plant and equipment 35,483 24,273 Investments: Shares in Sunrise 6,650 Shares in Glory 3.800 42,133 28,073 13,063 13,063 Current Assets TOTAL ASSETS 1.568 43,701 9.025 37,098 8.883 21,946 EQUITY AND LIABILITIES Ordinary share capital Retained profit Total Equity 8,000 22.638 30,638 3,000 24.075 27,075 2,000 19.898 21,898 Current Liabilities TOTAL EQUITY AND LIABILITIES 13,063 43.701 10,023 37.098 48 21.946 Additional information: a. Powerful acquired 2,700,000 of the 3,000,000 issued ordinary shares in Sunrise on 1 January 20x2 for RM6,650,000 at which date there was a credit balance in the retained profit of Sunrise of RM1,425,000. No shares have been issued by Sunrise since Powerful acquired its interest. b. On 1 January 20x2, included in property, plant and equipment of Sunrise was a piece of freehold land recorded at cost that had a fair value of RM500,000 greater than the cost. Sunrise did not adjust the land cost to reflect the fair value in its books. This piece of land still remains in Sunrise. C. On 1 January 20x4, Sunrise acquired 1,600,000 of the 2,000,000 issued ordinary shares in Glory for RM3,800,000 at which date there was a credit balance in the retained profit of Glory of RM950,000. No shares have been issued by Glory since Sunrise acquired its interest. d. During the current year 20x5, Glory had made inter-company sales to Sunrise of RM480,000 and earned a profit of 25 percent on cost and RM75,000 of these goods were in stock at 31 December 20x5. e. During the current year 20x5, Sunrise had made inter-company sales to Powerful of RM260,000 earning a profit of 33 1/3 percent on cost and RM60,000 of these goods were in stock at 31 December 20x5. 2 f. On 1 November 20x5, Powerful sold warehouse equipment to Sunrise for RM240,000 from its stock, Sunrise has included this equipment in its non-current assets, The equipment had been purchased on credit by Powerful for RM200,000 in October 20x5 and this amount is included in its current liabilities as at 31 December 20x5. g. Sunrise charges depreciation on its warehouse equipment at 20 percent on cost. It is company policy to charge a full year's depreciation in the year of acquisition and the amount is to be included in the cost of sales. h. Non-controlling interest is measured at its proportion of the fair value of the identifiable net assets. Required: Prepare the consolidation journal entries, consolidated statement of profit or loss and other comprehensive income and the consolidated statement of financial position for Powerful Bhd and its subsidiary for the year 20x5. [20 marks] END OF PAGE QUESTION Powerful Bhd was incorporated 20 years ago to distribute warehouse equipment. It diversified its activities and expanded its operations by acquisition of shares in Sunrise Bhd in year 20x2 and in Glory Bhd in year 20x4, Accounts for all companies are made up to 31 December The financial statements for Powerful, Sunrise and Glory for the year ended 31 December 20x5 are as follows: 5,463 Statements of Profit or Loss for the year ended 31 December 20x5 Powerful Sunrise Glory RM'000 RM000 RM'000 Turnover 45,600 24,700 22,800 Less: Cost of sales 18,050 5,320 27,550 19,237 17,480 Less : Expenses 6,800 3,087 3.800 Operating profit 20,750 16,150 13,680 Less : Interest paid 325 Profit before tax 20,425 16,150 13,680 Less : Taxation 8,300 5,390 4,241 Profit after tax 12.125 10.760 9.439 Dividends paid Retained profit at 1 January 20x5 9,500 20,013 13,315 10,459 Glory RM000 Statements of Financial Position as at 31 December 20x5 Powerful Sunrise RM000 RM'000 ASSETS Non-Current Assets Property, plant and equipment 35,483 24,273 Investments: Shares in Sunrise 6,650 Shares in Glory 3.800 42,133 28,073 13,063 13,063 Current Assets TOTAL ASSETS 1.568 43,701 9.025 37,098 8.883 21,946 EQUITY AND LIABILITIES Ordinary share capital Retained profit Total Equity 8,000 22.638 30,638 3,000 24.075 27,075 2,000 19.898 21,898 Current Liabilities TOTAL EQUITY AND LIABILITIES 13,063 43.701 10,023 37.098 48 21.946 Additional information: a. Powerful acquired 2,700,000 of the 3,000,000 issued ordinary shares in Sunrise on 1 January 20x2 for RM6,650,000 at which date there was a credit balance in the retained profit of Sunrise of RM1,425,000. No shares have been issued by Sunrise since Powerful acquired its interest. b. On 1 January 20x2, included in property, plant and equipment of Sunrise was a piece of freehold land recorded at cost that had a fair value of RM500,000 greater than the cost. Sunrise did not adjust the land cost to reflect the fair value in its books. This piece of land still remains in Sunrise. C. On 1 January 20x4, Sunrise acquired 1,600,000 of the 2,000,000 issued ordinary shares in Glory for RM3,800,000 at which date there was a credit balance in the retained profit of Glory of RM950,000. No shares have been issued by Glory since Sunrise acquired its interest. d. During the current year 20x5, Glory had made inter-company sales to Sunrise of RM480,000 and earned a profit of 25 percent on cost and RM75,000 of these goods were in stock at 31 December 20x5. e. During the current year 20x5, Sunrise had made inter-company sales to Powerful of RM260,000 earning a profit of 33 1/3 percent on cost and RM60,000 of these goods were in stock at 31 December 20x5. 2 f. On 1 November 20x5, Powerful sold warehouse equipment to Sunrise for RM240,000 from its stock, Sunrise has included this equipment in its non-current assets, The equipment had been purchased on credit by Powerful for RM200,000 in October 20x5 and this amount is included in its current liabilities as at 31 December 20x5. g. Sunrise charges depreciation on its warehouse equipment at 20 percent on cost. It is company policy to charge a full year's depreciation in the year of acquisition and the amount is to be included in the cost of sales. h. Non-controlling interest is measured at its proportion of the fair value of the identifiable net assets. Required: Prepare the consolidation journal entries, consolidated statement of profit or loss and other comprehensive income and the consolidated statement of financial position for Powerful Bhd and its subsidiary for the year 20x5. [20 marks] END OF PAGE