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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 |
|
$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.
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