Given below are the statements of financial position of H and its subsidiary of S as at 31st December 2016 H S RM RM Ordinary shares of RMI each 600,000 350,000 Revaluation reserve 80,000 30,000 Retained profit 120,000 60,000 Liabilities 110,000 15,000 910000 455000 Sundry assets 560,000 455000 Investment in S- 280,000 ordinary 350,000 shares at cost 910000 455000 H acquired 280,000 of 350,000 ordinary shares of S on 1 January 2013 when the balances in S accounts were: Revaluation reserve: RM25000 Retained profit: RM45000 a. Prepare the statement that clearly show the amount of goodwill, non- controlling interest, group retained profit and group revaluation reserve.

Given below are the statements of financial position of H and its subsidiary of S as at 31st December 2016 H S RM RM Ordinary shares of RMI each 600,000 350,000 Revaluation reserve 80,000 30,000 Retained profit 120,000 60,000 Liabilities 110,000 15,000 910000 455000 Sundry assets 560,000 455000 Investment in S- 280,000 ordinary 350,000 shares at cost 910000 455000 H acquired 280,000 of 350,000 ordinary shares of S on 1 January 2013 when the balances in S accounts were: Revaluation reserve: RM25000 Retained profit: RM45000 a. Prepare the statement that clearly show the amount of goodwill, non- controlling interest, group retained profit and group revaluation reserve.

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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1. On July 1, 2018, P Company issued 18,000 shares with $30 fair value ($10 par value) for 80% of the outstanding shares of S Company. Rose paid direct acqusition costs of $40,000. Two companies had the following balance sheets on July 1, 2018: S Co. Book P Co. Вook Value Value Cash Inventory $ 100,000 $ 20,000 120,000 60,000 Land Buildings (net) Equipment (net) 150,000 300,000 330,000 90,000 120,000 110,000 ТОTAL 1,000,000 400,000 Current Liabilities Common Stock - $10 par value Common Stock - $10 par value Retained Earnings 130,000 400,000 50,000 200,000 150,000 470,000 ТОTAL 1,000,000 400,000 The following are fair values for S's assets: Inventory $70,000, Land $120,000, Building $150,000, and Equipment $65,000. a) Record the investment in S Company and any entry necessitated by the purchase. b) Prepare a consolidated balance sheet for July 1, 2018.
The equity section of Windsor SA appears below as of December 31, 2022. Share capital-preference (6% preference shares, R$50 par value, authorized 94,600 shares, outstanding 84,600 shares) Share capital-ordinary (R$1 par, authorized and issued 10,000,000 shares) Share premium-ordinary Retained earnings Net income Earnings Per Share: Income from continuing operations Discontinued operations, net of tax R$125,960,000 Net income 31,020,000 R$ R$4,230,000 Net income for 2022 reflects a total effective tax rate of 20%. Included in the net income figure is a loss of R$11,280,000 (before tax) as a result of discontinued operations. Preference dividends of R$253,800 were declared and paid in 2022. Dividends of R$ 940,000 were declared and paid to ordinary shareholders in 2022. 10,000,000 Compute earnings per share data as it should appear on the income statement of Windsor SA. (Round answers to 2 decimal places, e.g. 1.48.) 19,270,000 156,980,000 R$190,480,000
The investment accounts maintained by Dexter Company were shown below: Available for Sale Securities - Y Company Ordinary Date Particulars 01-01-2020 Beginning Balance, 3,000 shares 36,000 01-12-2020 2 for 1 share split ( market price after the share split is P7) 12,000 03-17-2020 Sold 1,000 shares at P8 8,000 10-01-2020 Purchased 2,000 additional shares of Y Ordinary at P8 per share plus transaction costs of P0.50 per share 17,000 11-30-2020 Sold 1,000 shares at P8.50 8,500 12-31-2020 Adjustment to fair value (FV is P9.20 per share.) 6,700 Financial Assets at Fair Value through Profit or Loss 0 B Company 06-30-2020 Received a dividend of 1 share of B Company ordinary for every 5 shares of Y Company Ordinary. Market price on this date of B Company Ordinary is P2.50. The shares have par value of P1. 1,000 09-10-2020 Sold 500 shares for P2.80 per share 1,400 12-31-2020 Adjustment to market; fair value is P3.20 per share 2,000 Additional Information: • You traced the…
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“IFRS 10 Consolidated Financial Statements states that there are few ways to ascertain if the investor ‘controls’ and ‘influences’ its investees.”
N 1 Dwani Ltd acquired all the issued shares (cum div.) of Power Ltd for $653 000 on 1 January 2022. At that date, the equity of Power Ltd was recorded as follows. Share capital $ 400 000 General reserve 88 000 Retained earnings 90 000 On 1 January 2022, the records of Power Ltd showed that the company had previously recorded a goodwill at cost of $15 000. Further, Power Ltd had a dividend payable of $25 000, the dividend to be paid in March 2022. All other assets and liabilities were carried at amounts equal to their fair values at the acquisition date, except some inventories recorded at $20 000 below their fair value. Also, Dwani ltd identified at the acquisition date a patent with a fair value of $45 000 that Power Ltd has not recorded in its own accounts. Required: Prepare the consolidation worksheet entries for Dwani Ltd’s group on 30 June 2022 assuming the consideration transferred was $500 000.
A Company issued $5,00,000/- new capital divided into $.10/- shares at a premium of $4/- per share payable as On Application $1/- per share On Allotment $4/- per share & $.2/- premium On Final Payment $.5/- per share & $.2/- premium Overpayments on application were to be applied towards sum due on allotment. Where no allotment was made money was to be returned in full. The issue was oversubscribed to the extent of 13,000 shares. Applicants for 12,000 shares were allotted only 1,000 shares and applicants for 2,000 were sent letters of regret. All money due on allotment and final call was duly received. Make the necessary entries in the company‟s book.
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IUuwvie t0 Accountancy Company is: a. P393,000 b. P376,500 c. P390,000 d. P406,500 11. YSL Corporation acquired 80% of the outstanding ordinary shares of GBX Company on June 1, 2022 for P586,250. GBX Company's shareholder's equity components at the end of this year were as follows: Ordinary shares, P100 par, P250,000; Share premium, P112,500 and Retained earnings, P222,5000. NCI is measured at fair value. All the assets of GBX were fairly valued, except for inventories, which is overstated by P11,000 and equipment, which is understated by P15,000. Remaining useful life of equipment is 4 years. Both companies use straight line method for depreciation and amortization. Shareholder's equity of YSL on January 1, 2022 is composed of Ordinary shares, P750,000; Share premium, P175,000 and Retained earnings, P525,000. Fair value of NCI on the date of acquisition is P117,500. Goodwill, if any, should be written down by P14,225 at year end. Net income for the first year of parent and subsidiary…