А. E273,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
100%
Give me answer within 45 min please I will give you positive rating immediately its very urgent ...thankyou..
Andrew acquired 80% of the equity shares of
Alpha on 1 January 2015 when Alpha's retained
earnings were £100,000. During the year ended
31 December 2015, Alpha purchased goods
from Andrew totaling £160,000. At 31 December
2015, 25% of these goods were still in the
inventory of Alpha. Andrew applies a mark-up
on cost of 25% to all of its sales. At 31 December
2015, the retained earnings of Andrew and
Alpha were £225,000 and £170,000
respectively.
What would be the amount of retained earnings
in Andrew's consolidated statement of financial
position as at 31 December 2015?
А.
£273,000
В.
£271,000.
С.
£249,000.
D.
None of the above
Transcribed Image Text:Andrew acquired 80% of the equity shares of Alpha on 1 January 2015 when Alpha's retained earnings were £100,000. During the year ended 31 December 2015, Alpha purchased goods from Andrew totaling £160,000. At 31 December 2015, 25% of these goods were still in the inventory of Alpha. Andrew applies a mark-up on cost of 25% to all of its sales. At 31 December 2015, the retained earnings of Andrew and Alpha were £225,000 and £170,000 respectively. What would be the amount of retained earnings in Andrew's consolidated statement of financial position as at 31 December 2015? А. £273,000 В. £271,000. С. £249,000. D. None of the above
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education