Assigment 1b - BUSI 453

pdf

School

University of British Columbia *

*We aren’t endorsed by this school

Course

BUSI453

Subject

Business

Date

Feb 20, 2024

Type

pdf

Pages

Uploaded by JudgeFreedom11435

ADVANCED FINANCIAL ACCOUNTING - BUSI 453 Assignment 1 Part b 0 Submitted 30/30 30/30 The July 31, Year 3, balance sheets of two companies that are parties to a business combination are as follows: points awarded Ravinder Corp. Robin Inc. Carryin Carryin . Amofintg Amoilln‘cg T LEELS Current assets $ 1,601,600 $ 420,800 $ 471,200 Plant and equipment 1,331,600 1,341,600 975,200 Accumulated depreciation (250,800) (501,600) ] Patents (net) - - 73,600 eBook $ 2,682,400 $ 1,260,800 Current liabilities $ 1,361,600 $ 253,600 253,600 Long-term debt 481,600 360,800 385,600 Common shares 721,600 169,600 Retained earnings 117,600 476,800 $ 2,682,400 $ 1,260,800 In addition to the assets identified above, Ravinder Corp. attributed a value of $101,600 to a major research project that Robin Inc. was working on. Robin Inc. feels that it is within a year of developing a prototype for a state-of-the-art bio-medical device. If this device can ever be patented, it could be worth hundreds of thousands of dollars. Effective on August 1, Year 3, the shareholders of Robin Inc. accepted an offer from Ravinder Corp. to purchase 80% of their common shares for $1,104,000 in cash. Ravinder Corp.’s legal fees for investigating and drawing up the share purchase agreement amounted to $25,800. Required: (a) Prepare the journal entries in the records of Ravinder Corp. to record the share acquisition and cost of legal fees. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) | [‘° S.No Journal Debit Credit _ eBook A 1 Investment in Robin Inc. @ | 1,104,000 @ Cash ) 1,104,000 @ B 2 Legal fees expense o 25,800 & Cash o 25,800 @ 30/30 points awarded (b) Prepare a schedule to calculate and allocate the acquisition differential. (Negative amounts and amounts to be deducted should be indicated by a minus sign.) | - - . Cost of 80% of Robin Inc. $ 1,104,000 @ ee%l)k Implied value of 100% of Robin Inc. $ 1,380,000 Q Carrying amount of Robin's Inc. net assets Assets $ 1,260,800 & Liabilities (614,400) ° 646,400 Acquisition differential 733,600 ° Allocated: FV-CA Current assets Qs 50,400 & Plant and equipment (V] 135,200 @ Patents (V] 73,600 @ Research project (V] 101,600 @ Long-term debt (V] (24,800) @ 336,000 Goodwill $ 397,600 °

ggg?gawarded (c) Prepare Ravinder Corp.’s consolidated balance sheet as at August 1, Year 3. Assume there were no transactions on this date other than the transactions described above. (Negative amounts should be indicated by a minus sign.) [ RAVINDER CORP. B I Consolidated Balance Sheet ] !| T August 1, Year 3 | eBook Assets Current assets Qs 943,000 @ Plant and equipment (V] 2,306,800 @ Accumulated depreciation (V] (250,800) @ Goodwil © 397,600 @ Research project (V] 101,600 & Patents-net Q 73,600 @ $ 3,571,800 Liabilities and Equity Current liabilities Q 1,615,200 @ Long-term debt (V] 867,200 @ Common shares (V] 721,600 @ Retained earnings (V] 91,800 @ Non-controlling interest (V] 276,000 @ $ 3,571,800

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Related Documents

INVENTORY CHAPTER 12.pdf

QUIZ 2 CHAPTER 2 & 3.docx

HW1_question.docx

Action Memo II.docx

BSBTEC303 Student Guide.docx

Supply Chain Management During COVID.docx

ANLY515_HW1_Code_and_Plots.pdf.docx

709. Assignment-2.docx

Module 10 report.docx

10-2 Journal- Personal Action Plan.docx

1-3 journal Company Research and Selection.docx

MBA 699 Fishbone Diagram Template.docx

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:Cengage,

Purchasing and Supply Chain Management

Operations Management

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Cengage Learning

Foundations of Business (MindTap Course List)

Marketing

ISBN:9781337386920

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:Cengage Learning

Foundations of Business - Standalone book (MindTa...

Marketing

ISBN:9781285193946

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:Cengage Learning

SEE MORE TEXTBOOKS

Recommended textbooks for you

Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Foundations of Business - Standalone book (MindTa...
Marketing
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning