Solved Assignments

On 1 July 2015, Investor Ltd acquired 25% of the shares of Investee Ltd for $42,500

On 1 July 2015, Investor Ltd acquired 25% of the shares of Investee Ltd for $42,500. At this date, all the identifiable assets and liabilities of Investee Ltd were recorded at amounts equal to fair value, and the equity of Investee Ltd consisted of:

 

Share capital	$100,000
General reserve	30,000
Asset revaluation surplus	20,000
Retained earnings	20,000

 

During The 2015–16 year, Investee Ltd reported a profit of $25,000. As reported in other comprehensive income, the asset revaluation surplus increased by $5,000. Investee Ltd paid a $4,000 dividend and transferred $3,000 to general reserve.

 

Required:

 

Prepare the equity accounting journal entries at 1 July 2016 assuming that Investor does not prepare consolidated financial statements.

Canberra Ltd, an Australian company, acquired all the issued shares of Washington Ltd

Canberra Ltd, an Australian company, acquired all the issued shares of Washington Ltd, a US company, on 1 January 2014. At this date, the net assets of Washington Ltd are shown below.   US$ US$ Property, plant and equipment 155 000 Accumulated depreciation (30 000) 125 000 Cash 10 000 Inventory 20 000 Accounts receivable 10 000 Total assets 165 000 Accounts payable 15 000 Net assets 150 000     The trial balance of Washington Ltd at 31 December 2014 was:   US$ US$ Dr Cr Share capital 100 000 Retained earnings 50 000 Accounts payable 42 000 Sales 90 000 Accumulated depreciation – plant and equipment 45 000 Property, plant and equipment 155 000 Accounts receivable 40 000 Inventory…

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FNCE5010 Corporate Financial Management

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ACT305 CORPORATE ACCOUNTING

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ACT204 UNIT NAME: FINANCIAL ACCOUNTING

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CVP Analysis

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