Homework Help is Here – Start Your Trial Now!
Business
Accounting
Arya Ltd acquired 25% of the voting shares of Brya Ltd on 1 July 2014 for $80,000.  At the date of acquisition the shareholders equity of Brya is as follows: Share Capital                  220,000 Retained earnings          100,000                                           320,000 All assets are recorded at their fair value The following information relates to Brya Ltd: Profit /loss after tax as of 30/6/15 are $60,000, dividend paid $20,000, ARR balance $2,000.   Required: (a) Prepare the equity accounting journals at 1 July 2014 and 30 June 2015 assuming that Arya does not prepare consolidated financial statements.  (b) Calculate Value of equity for Brya Ltd.

Arya Ltd acquired 25% of the voting shares of Brya Ltd on 1 July 2014 for $80,000.  At the date of acquisition the shareholders equity of Brya is as follows: Share Capital                  220,000 Retained earnings          100,000                                           320,000 All assets are recorded at their fair value The following information relates to Brya Ltd: Profit /loss after tax as of 30/6/15 are $60,000, dividend paid $20,000, ARR balance $2,000.   Required: (a) Prepare the equity accounting journals at 1 July 2014 and 30 June 2015 assuming that Arya does not prepare consolidated financial statements.  (b) Calculate Value of equity for Brya Ltd.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

 

Arya Ltd acquired 25% of the voting shares of Brya Ltd on 1 July 2014 for $80,000.  At the date of acquisition the shareholders equity of Brya is as follows:

Share Capital                  220,000

Retained earnings          100,000

                                          320,000

All assets are recorded at their fair value

The following information relates to Brya Ltd:

Profit /loss after tax as of 30/6/15 are $60,000, dividend paid $20,000, ARR balance $2,000.

 

Required:

(a) Prepare the equity accounting journals at 1 July 2014 and 30 June 2015 assuming that Arya does not prepare consolidated financial statements. 

(b) Calculate Value of equity for Brya Ltd.

Expert Solution
steps

Step by step

Solved in 3 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Consolidations
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar 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
SEE MORE TEXTBOOKS