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Bonoo Limited acquired 100% of the issued capital of Wonoo Limited on 1 July 2011 for $85,000. At that date the shareholders the shareholders’ equity of Wonoo Limited was   Share capital $60,000 Reserves $15,000 Retained Earnings $10,000 Required:  Journal entries to eliminate the investment in Wonoo Ltd by Bonoo Ltd. Complete the worksheet extract, as at 30 June 2012 Prepare the “Shares in Wonoo Ltd” account as it would appear in the ledger of Bonoo Ltd as at 30 June 2012.

Bonoo Limited acquired 100% of the issued capital of Wonoo Limited on 1 July 2011 for $85,000. At that date the shareholders the shareholders’ equity of Wonoo Limited was   Share capital $60,000 Reserves $15,000 Retained Earnings $10,000 Required:  Journal entries to eliminate the investment in Wonoo Ltd by Bonoo Ltd. Complete the worksheet extract, as at 30 June 2012 Prepare the “Shares in Wonoo Ltd” account as it would appear in the ledger of Bonoo Ltd as at 30 June 2012.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Bonoo Limited acquired 100% of the issued capital of Wonoo Limited on 1 July 2011 for $85,000. At that date the shareholders the shareholders’ equity of Wonoo Limited was

 

Share capital

$60,000

Reserves

$15,000

Retained Earnings

$10,000

Required: 

  1. Journal entries to eliminate the investment in Wonoo Ltd by Bonoo Ltd.
  2. Complete the worksheet extract, as at 30 June 2012
  3. Prepare the “Shares in Wonoo Ltd” account as it would appear in the ledger of Bonoo Ltd as at 30 June 2012.
Elimination Worksheet Extract Bonoo Wonoo Consolidation as at 30 June 2012 Ltd Ltd Dr Cr Balance Operating profit after tax Retained earnings 01/07/11 48000 28000 20000 10000 38000 14000 68000 Appropriations Retained earnings 30/06/12 Share capital 28000 40000 24000 200000 60000 Reserves 72000 15000 Shares in Wonoo 85000
Transcribed Image Text:Elimination Worksheet Extract Bonoo Wonoo Consolidation as at 30 June 2012 Ltd Ltd Dr Cr Balance Operating profit after tax Retained earnings 01/07/11 48000 28000 20000 10000 38000 14000 68000 Appropriations Retained earnings 30/06/12 Share capital 28000 40000 24000 200000 60000 Reserves 72000 15000 Shares in Wonoo 85000
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