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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
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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.

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