On 1/1/2017 Zamboor company purchased 100 % of Al Otaibi company by SR 500,000 , and paid SR 30,000 for commission and consulting expenses and SR 20.000 indirect expenses for registering. The balance sheet of Zamboor and Al Otaibi company on 31/12/2016 before of purchase was: particulars Cash Account receivables400,000 300,000 Inventories Zamboor Al Otaibi (book value)Al Otaibi (fair value ) 600,000 25,000 25,000 340,000 150,000 450,000 100,000 Total assets 1.450.000 425.000 515.000 65,000 Account payables 200,000 50,000 Capital Add. Capital Total liabilities Requirements: From the information mentioned above, Use purchase method to Prepare consolidated Balance Shee at Date of Acquisition and fill in the blanks in the table of consolidated sheet. Particulars 700,000 200,000 550,000 175,000 1.450.000 425.000 Zamboor Al Otaibi (book value)Consolidation adjustmentConsolidation financial Cr Dr Cash Account receivables450,000 300,000 Inventories Goodwill Investment Total assets Account payables 800,000 50,000 Capital Add. Capital 400,000 25,000 100,000 1.430.000 425.000 2,700,000200,000 950,000 175,000 1430000 425,000
On 1/1/2017 Zamboor company purchased 100 % of Al Otaibi company by SR 500,000 , and paid SR 30,000 for commission and consulting expenses and SR 20.000 indirect expenses for registering. The balance sheet of Zamboor and Al Otaibi company on 31/12/2016 before of purchase was: particulars Cash Account receivables400,000 300,000 Inventories Zamboor Al Otaibi (book value)Al Otaibi (fair value ) 600,000 25,000 25,000 340,000 150,000 450,000 100,000 Total assets 1.450.000 425.000 515.000 65,000 Account payables 200,000 50,000 Capital Add. Capital Total liabilities Requirements: From the information mentioned above, Use purchase method to Prepare consolidated Balance Shee at Date of Acquisition and fill in the blanks in the table of consolidated sheet. Particulars 700,000 200,000 550,000 175,000 1.450.000 425.000 Zamboor Al Otaibi (book value)Consolidation adjustmentConsolidation financial Cr Dr Cash Account receivables450,000 300,000 Inventories Goodwill Investment Total assets Account payables 800,000 50,000 Capital Add. Capital 400,000 25,000 100,000 1.430.000 425.000 2,700,000200,000 950,000 175,000 1430000 425,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please solve the question ASAP.
Transcribed Image Text:On 1/1/2017 Zamboor company purchased 100 % of Al Otaibi company by SR 500,000 , and paid SR
30,000 for commission and consulting expenses and SR 20.000 indirect expenses for registering. The
balance sheet of Zamboor and Al Otaibi company on 31/12/2016 before of purchase was:
particulars
Cash
Account receivables400,000 300,000
Inventories
Zamboor Al Otaibi (book value)Al Otaibi (fair value )
600,000 25,000
25,000
340,000
150,000
450,000 100,000
Total assets
1.450.000 425.000
515.000
65,000
Account payables 200,000 50,000
Capital
Add. Capital
Total liabilities
Requirements:
From the information mentioned above, Use purchase method to Prepare consolidated Balance Shee
at Date of Acquisition and fill in the blanks in the table of consolidated sheet.
Particulars
700,000 200,000
550,000 175,000
1.450.000 425.000
Zamboor Al Otaibi (book value)Consolidation adjustmentConsolidation financial
Cr
Dr
Cash
Account receivables450,000 300,000
Inventories
Goodwill
Investment
Total assets
Account payables 800,000 50,000
Capital
Add. Capital
400,000 25,000
100,000
1.430.000 425.000
2,700,000200,000
950,000 175,000
1430000 425,000
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