The Wondai Ltd Croup reports the following balances in its consolidated financial statements for the year ending 30 June 2018 $ 2017 $ Financial year Buildings 524,000 268,000 ACC Depr.- Buildings 190,000 143,000 Depr Expense - Buildings 50,000 23,000 the shares in Yallingup Ltd. which recorded On1 July 2017. the Wondai Ltd Group acquired 80%. the following account balances at that date: 1 July 2017 $ Buildings 80,000 Acc Depr.- Buildings 32,000 During the year ended 30 June 2018, the Wondai Ltd Group disposed of buildings with a carrying. amount of $63,000 Required: Calculate the amount of consolidated cash flows from investing activities in relation to the purchase of buildings for the year ending 30 June 2018
Q: Now suppose Ben owns a $600,000 house and has an 8% chance of experiencing a fire in any given year.…
A: Amount of risk to an insurance company is the actual difference between the amount paid as premium…
Q: A machine costs P 7,350, has a life of 8 years and has a salvage value of P 350 at the end of 8…
A: Sum of year's digit method is an accelerated method for calculating an asset's depreciation. Higher…
Q: PIZZA Parlor Co had the following available information: Accounts receivable P200,000 Accounts…
A: Introduction: The current ratio is a liquidity ratio used to assess a company's ability to pay…
Q: As the accountant for Clean Air Controls, you attend a meeting with the sales managers to discuss…
A: Accounts Receivables - Accounts Receivables are the amount unpaid by the customer for the service…
Q: Problem 27-3 (IAA) At the beginning of current year, Definite Company acquired the following assets:…
A: Note: Hi! Thank you for the question As per the honor code, We’ll answer the first question since…
Q: Need help with question 2, if you could please just explain to me how this done.
A: Any number with decimal of more than 0.5, will rounded off to the next number. If it is less than…
Q: On May 15, FDN Trading signed a P150,000, 12 percent, 150-day note payable with the bank. The note…
A: Formula: Cash received = Face value of the note - Discount on Note where, Discount on Note = Face…
Q: . On January 1, 2021, Bean Counters Co. issued a $10 million, 8%, nine-year convertible bond with…
A: Initial measurement: 8% Convertible bonds = $9,400,475 Equity component = Issue proceeds -…
Q: Match the two lists, below, by placing the capital letter from List 1 in each of the cells preceding…
A: Control Environment A control environment is made up of the standards, policies, procedures, and…
Q: The overhead expenses of a factory are allowed on the machine hour method. You are required to…
A: The machine hour method is a method of allocating overhead expenses on the basis of total estimated…
Q: On May 1, 2022, FDN Trading accepted a 120-day, 8% P60,000 note from ABC Co. 30 days after, FDN…
A: Let's understand some basics Notes are usually discounted with recourse, when it is discounted with…
Q: Explain in details what the textbook means by a “cost hierarchy.”
A: The cost hierarchy is a classification system used in activity-based costing that assigns activities…
Q: Candra GmbH obtains two products from a common input, Crude Oil. Joint processing costs up to the…
A: Further Processing of Product: The decision of whether to sell a product now or continue processing…
Q: The Income Statement for the year 2021 of Mira Co. contains the following information: Revenue…
A: Closing entries are usually passed to close revenue and expense accounts , withdrawal/dividend…
Q: A manufacturing company stores a major component used in its factory. The receipts and issues for…
A: Inventory - Inventory is the goods that a company keeps in order to generate revenue. This includes…
Q: Dialo, SRL produces a single product. The cost of producing and selling a single unit of this…
A: Part a:
Q: On November 30, the company's finished-goods inventory, which is evaluated using the first-in,…
A: Work in progress Opening Balance of raw material and purchased Parts = $6,68,000 In the month of…
Q: Prepare a General Journal entry for the following transaction: On December 17, On Your Mark paid…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Chou Company has a net income of $52,000, assets at the beginning of the year are $259,000 and…
A: Return on assets indicates profitability rate on the bases of assets. It can be calculated by…
Q: Explain Long-term liabilities?
A: The balance sheet of the business represents the financial position of the business with assets and…
Q: The effective semiannual interest rate for a monthly interest rate of 2%
A: Every business needs funds for the business. Funds can be arranged internally or from external…
Q: the year? — $980,000 Question: If the total liabilities decreased by $25,000 during a period and…
A: The accounting equation states that assets equals to sum of liabilities and shareholders equity.…
Q: According to a summary of the payroll of Mountain Streaming Co., $110,000 was subject to the 6.0%…
A: Formula : Social security tax amount = Payroll amount x Social security tax rate
Q: Anthoney Inc's trial balance contains the following balances: Cash $535 Accounts Receivable $278…
A: Introduction: Trial Balance: All the final ledger accounts balances are posted in Trial balance to…
Q: Window World extended credit to customer Nile Jenkins in the amount of $134,900 for his purchase of…
A: Introduction: Journals: All the business transactions are to be recorded in Journals. Journals aer…
Q: May and Jun are partners with profit and loss ratio of 50:50 and capital balances of P300.000 and…
A: The total cash is to be invested by Julie will be 20% of revalued assets.
Q: explain the different organization cultures and sub cultures
A: Culture has the ability to define a group of people. That includes things like language, cuisine,…
Q: Mary Jane started her own service company. She invested 3,000,000 cash to open the business and has…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: A financial statement user can not gain a complete understanding of the financial statements…
A: A Financial Statement is the Statement which company prepares to show their business activities and…
Q: Arco Steel, Inc. generated total sales of $45,565,200 during fiscal 2010. Depreciation and…
A: EBIT: EBIT means Earnings before interest and tax. It is also referred to as Operating income, and…
Q: Teakap, Inc., has current assets of $1,456,312 and total assets of $4,812,369 for the year ending…
A: An accounting equation refers to a mathematical representation of the transaction. It indicates that…
Q: ABC Corp acquired a lot by paying down payment of P400,000 and issued a non-interest bearing note of…
A: Cost of fixed assets shall include it's Purchase cost and all cost incurred to bring the asset to…
Q: Computational. ABC Company has an equipment acquired on January 1, 2018 at a cost of P2,200,000 with…
A: Loss on revaluation means the loss that would be realized if there has been a taxable disposition of…
Q: Consider a machine which costs $115,000 now and which has a useful life of seven years. This machine…
A: The following the information in the question: 1. Machine which costs $115,000 2. Useful life of…
Q: John has an income of 160000 , What would be his total tax liability based on the tax structure ?…
A: Given income of John is 160000 In case of slab rate of tax, tax liability has to be calculated based…
Q: 7. After all closing entries have been posted, the revenue account will have a balance of
A: The revenue account balance is transferred to the income summary account when the closing entry is…
Q: From the following, calculate the cost of ending inventory and cost of goods sold for the LIFO…
A: LIFO is last in first out method for inventory valuation, which says that inventory purchased at…
Q: May and Jun are partners with profit and loss ratio of 50:50 and capital balances of $5,400,000 and…
A: Partnership is one of the agreement or arrangement between two or more than two persons, under which…
Q: Calculate the debt-to-equity ratio. Ernst Company's balance sheet shows total liabilities of…
A: Debt = total liabilities = $32,500,000
Q: Car.com bought a Toyota for $28,000. The Toyota has a life expectancy of 10 years with a residual…
A: The depreciation expense is charged on the basis of usage of assets by the business. Depreciation…
Q: The following account balances were provided by Kate's Consulting Company as of December 31, 2022.…
A: Formula used: Ending capital = Beginning capital + Net profit - Drawings made
Q: the company assesses the inventory at full production cost. explain (without figures) how it will…
A: Assessment of inventory is a difficult task for organisations. Many methods are adopted to calculate…
Q: Date 2020 June 1 3 6 10 14 Invoice Number Customer Sweet Merchandising Lovable Enterprise Cutie…
A: In the context of the given question, we are required to prepare the accounts receivable control…
Q: Record journal entries for the following purchase transactions of Apex Industries. Nov. 6 Purchased…
A: Solution:- Given, The information of purchase transactions of Apex Industries.
Q: tements for the year ended 30 June 2013: Financial year 2013 2012 $82,000 Trade Receivables $99,000…
A: Bills of Exchange: It is an unconditional document which is written by the drawer /seller on Drawee/…
Q: st in a major new development that will cost € 40 million, and is now considering ways to finance…
A: Capital structure decisions are proportionate relationship between equity and debt in the total…
Q: The prepaid insurance account had a beginning balance of $3,755 and was debited for $6,755 of…
A: The adjustment entries are prepared at year end to adjust the revenue and expenses of the current…
Q: A plant operating at 100% capacity (1000 kg product per year) has an annual net profit of $40,000…
A: Break even point(BEP)= Fixed cost/Contribution per unit Variable cost ratio + Contribution Ratio=…
Q: If total costs remain the same, the smaller the proportion of fixed costs in a firm's cost structure…
A: Under Marginal costing (variable costing) contribution percentage or contribution per unit of…
Q: Rizzo Goal Inc. produces and sells hockey equipment, often custom made for online orders. The…
A: Customer retention rate is the actual percentage of existing customers who remain customers after a…
Step by step
Solved in 2 steps
- On 1 July 2016, A Ltd acquired 80% of the issued shares of B Ltd for $190 000. At this date, the equity of B Ltd was: Share capital General reserve Retained earnings $ 100 000 50 000 60 000 At acquisition date . At 30 June 2018, the equity of B Ltd consisted of: Share capital General reserve Retained earnings $ 100 000 70 000 90 000 During the 2017–18 year B Ltd recorded a profit of $20 000. At 1 July 2016, the fair value of the non-controlling interest was $45 000 and A Ltd adopts the full goodwill method. Required: Prepare the acquisition analysis (without any consolidation entries) please answer complete and working noteThe balance sheet of Palma Enterprises and Selda Company at December 31, 2016 are summarized below:Accounts Palma SeldaAssets P5,000,000 P2,000,000Liabilities 1,500,000 500,000Capital stock, P40 par 2,500,000Capital stock, P25 par 1,000,000Retained earnings 1,000,000 500,000At the date of acquisition, Selda’s net assets are understated while its liabilities are fairly valued.On January 1, 2017, Palma purchased 80% of Selda Company’s outstanding shares for P2,000,000, when the fair value of Selda’s net assets was P2,200,000. Palma issued 10,000 previously unissued shares in…On 1 January 2018, Chelsea Ltd acquired 75% of the shares in Orlando Ltd at N$126 000. At that date, the balance on Orlando Ltd’s retained earnings account amounted to N$36 000. The share capital amounted to N$120 000 and no shares have been issued since that date.The following are the condensed financial statements of Chelsea Ltd and subsidiary OrlandoLtd at 31 December 2020.STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER 2020Chelsea LtdN$Orlando LtdN$ASSETSProperty, plant and equipment 168 000 105 000Investment in Orlando Ltd at fair value 180 000 -Trade receivables 87 000 156 000Total assets 435 000 261 000EQUITY AND LIABILITIESShare capital 240 000 120 000Mark-to-market reserve 54 000 -Retained earnings 54 000 54 000Long-term borrowings 30 000 6 000Trade and other payables 57 000 81 000Total equity and liabilities 435 000 261 000EXTRACT FROM THE STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2020Chelsea LTDN$Orlando LTDN$Profit 55 500…
- The balance sheet of the proprietorship of Jacob as of June 30, 2018 showed the following assets andliabilities:Cash P 40,000Accounts Receivable 53,600Inventory 88,000Equipment 65,600Accounts Payable 63,520The cash balance included a 200- share certificate of BW Resources common at acquisition cost of P 1,600; the current market quotation is 70 per share. Of the accounts receivable, an estimated 5% is considered to be doubtful of collection. Certain inventory items, booked at a cost of P22,960, are currently worth P16,000. Depreciation has not been recorded; the equipment, acquired two years ago, has a remaining useful life of about eight more years. Prepaid expense of P 12,800 and accrued expense of P 6,120 have not been properly recognized. Emily and Bert will join Jacob in a partnership. Jacob will invest the net assets of his business, after effecting the appropriate adjustments, and he will be allowed credit for goodwill equal to 10% of his initial capital credit. Emily and Bert…12) Pinky Co. acquired 80% of Scar Co. ordinary share capital on 1 January 2012. As at 31 December 2012 the extract from their individual statements of financial position showed: Current Assets: Receivables Current Liabilities: Payables Select one: O a. O b. Oc. O d. Pinky Co $ 50,000 70,000 As a result of trading during the year Pinky Co.'s receivables balance included an amount due from Scar Co: of $4,600. What should be the shown as the consolidated figure for receivables and payables? $80,000 and $112,000 $75400 and $112,000 $74,000 and $103,600 $75,400 and $107,400 Scar Co $ 30,000 42,0009.1 Calculate Left Ltd's share of profits in Right Ltd for the year ended 30 June 2023. The following information is relevant to questions 9.1 and 9.2. Left is a parent company that prepares consolidated financial statements. On 1 July 2021 Left Ltd acquired 40% of the equity in Right Ltd for $220 000. At this date the equity in Right Ltd consisted of: Capital $250 000 Revaluation reserve $50 000 Retained profits $150 000 Right Ltd carried its assets fair values with the exception of one item of plant & equipment whose fair value was $20 000 greater than its carrying amount. The estimated useful life of this item is 4 years. Summary of movements in the retained earnings of Right Ltd: 2022 2023 Profit after tax Retained profits at start Dividends 140 000 200 000 150 000 210 000 (80 000) 210 000 (100 000) 310 000 Retained profits at end At 30 June 2022 there were unrealised profits before tax of $10 000 arising from inventory transfers between the two entities.
- On 1 January 2020 Harleen Inc purchased 1,275 ordinary shares in Shresta Inc , paying £5,300 by cheque. At the time of purchase, Shresta Inc’s profit and loss account balance were £1,000 and share premium was £500. The following are the statement of financial positions of Harleen Inc and Shresta Inc: Statement of Financial Position as at 31 December 2020 Harleen Inc Shresta Inc Non-Current Assets £ £ £ £ Buildings 10 000 4000 Motor Vehicles 7000 900 Investment in Shresta Inc 5300 22300 4900 Current Assets Inventory 1200 800 Trade Receivables 1500 260 Bank 300 390 Cash 50 10 3050 1460 Current Liabilities Trade Payables 5600 800 (2550) 660 19750 5560 Non-Current Liabilities Loans 6000…1. Given below are the consolidated statements of financial position and the consolidated statement of comprehensive income for Pelangi Berhad and its subsidiary Mentari Berhad: Consolidated Statement of Financial Position as at 31 December 2020 2019 RM'000 RM'000 Property, plant and equipment 1,350 1,300 Investment in associates company 1,000 900 Inventory 900 500 Trade receivables 500 700 Bank 300 150 4,050 3,550 Ordinary shares of RM1 each 2,500 2,500 Retained profits 560 260 Non-controlling interest 590 490 Trade payables 400 300 4,050 3,550 Consolidated Statement of Comprehensive Income for the year ended 31 December 2020 2020 RM'000 Profit 495 Share of profits of associate company (less impairment of goodwill) 130 Profit before tax 625 Тах (50) Profit after tax 575 Profit after tax attributable to: Equity holders of parent company 425 Non-controlling interest 150 575 Additional information: i. Tax charge for the year has been paid. ii. Group depreciation on property, plant and…Accounting Corelli Ltd acquired all the shares of Handel Ltd on 1 July 2016. During the year 1 July 2016 to 30 June 2017 the following transactions take place between Handel and Corelli: a) Handel has a $400 000 loan from Corelli Ltd, at an annual interest of 10% (the loan was taken on 1 July 2016). Accruals of Corelli Ltd include $15 000 loan interest due from %3D Handel Ltd. b) The parent charged a $9 000 management fee. All of this was paid by 30 June 2017. c) Dividends declared by Handel amount to $30 000 and Corelli, $90 000. All dividends were yet to be paid out. Required: Prepare journal entries required on consolidation to eliminate the intra-group transactions as of 30 June 2017, assuming a tax rate of 30%.
- The following information relates to Adele Ltd. Since the date of acquisition, Adele Ltd has held interests in multiple subsidiaries totalling DNCI of 25%, and INCI of 15%. The following summarised financial information is provided: Retained earnings at DOA $236,000 Retained earnings at 1/7/2020 $476,000 Current period profit for year ended 30/6/2021 $117,000 a) Based on the financial information you have available, prepare the journal entries to record the allocation to NCI upon consolidation on 30 June, 2021.Marie Bhd acquired 80% of Donny Bhd ordinary share capital on 1 January 2019. As at 31 December 2019, extracts from their individual statements of financial position showed: Accounts Marie Bhd (RM) Donny Bhd (RM) Current assets: Receivables 105,000 40,000 Current liabilities: Payables 90,000 21,000 As a result of trading during the year, Marie Bhd’s receivables balance included an amount due from Donny Bhd of RM5,000.Required:Explain the amount to be shown as the consolidated figure for receivables andpayables. Please show your calculation.11. On 1 January 2017, Charlie Ltd acquired all the issued shares (cum div.) of Chapline Ltd for $263,000. At that date the equity of Chapline Ltd was recorded at: Share capital $150,000 40,000 60,000 Reserves Retained earnings On 1 January 2017, the records of Chapline Ltd also showed that the company had recorded the asset goodwill at cost of $5000. Further Chapline Ltd had a dividend payable liability of $10 000, the dividend to be paid in March 2017. All other assets and liabilities were carried at amounts equal to their fair values. Required А. Prepare the consolidation worksheet entries on 1 January 2017, immediately after combination. В. Prepare the consolidation worksheet entries at 30 June 2017. С. Prepare the consolidation worksheet entries at 1 January 2017 assuming the consideration transferred was $259,000. B.