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 Reserves 40,000 Retained earnings 60,000 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.

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 Reserves 40,000 Retained earnings 60,000 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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.

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