Advanced Financial Accounting
Required :
1.Prepare Consolidation Journal entries for the Consolidation of Jan Ltd and Dean Ltd
2.Prepare a Consolidated Comprehensive Income Statement for the Group
3.Prepare a Consolidated Balance Sheet for the Group
Information:
On 1 July 2018 Jan Ltd acquired all the share capital of Dean Ltd for $187,500 .At that date the equity of Jan Ltd and Dean Ltd was :
Jan Ltd Dean Ltd
Share Capital $150,000 $100,000
General Reserve 90,000 60,000
Retained Earnings 20,000 17,500
At 1 July 2018 the identifiable net assets of both companies were recorded at fair value.
For the year ended 30 June 2019 the following financial information is provided by both companies:
Jan Ltd Dean Ltd
Sales revenue $388,500 $200,000
Dividend revenue 7,500 ——
Other revenue 10,000 ——-
Total revenue 406,000 200,000
Total expenses (360,000) (176,000)
Profit before income tax 46,000 24,000
Income tax expense (15,000) (10,000)
Profit 31,000 14,000
Retained Earnings 1/7/18 20,000 17,500
Total available for appropriation 51,000 31,500
Interim dividend paid (7,500) (2,500)
Final dividend declared (15,000) (5,000)
(22,500) (7,500)
Retained Earnings 30/6/19 28,500 24,000
Shares in Dean Ltd 187,500 ——-
Other investments 150,000 ——-
Dividend receivable 5,000 ——–
Loan receivable 5,000 ———
Property,plant and equipment 18,500 205,000
Total assets 366,000 205,000
Final dividend payable 15,000 5,000
Loan payable —— 5,000
Other non current liabilities 82,500 11,000
Total liabilities 97,500 21,000
Net assets 268,500 184,000
Share capital 150,000 100,000
General reserve 90,000 60,000
Retained Earnings 28,500 24,000
Total equity 268,500 184,000
Additional information:
1.Jan Ltd has lent $5,000 to Dean Ltd at 1/7/18.This loan has a 10% interest rate
2.Jan Ltd rented office space to Dean Ltd for $4,000 during the year .
3.Jan Ltd sold inventory to Dean Ltd for $25,000 at cost plus 25%.None of this inventory is still
on hand as it has all been sold externally.
Click on Buy Solution and make payment. All prices shown above are in USD. Payment supported in all currencies. Price shown above includes the solution of all questions mentioned on this page. Please note that our prices are fixed (do not bargain).
After making payment, solution is available instantly.Solution is available either in Word or Excel format unless otherwise specified.
If your question is slightly different from the above question, please contact us at info@myassignmentguru.com with your version of question.