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Prepare the consolidated statement of profit or loss and movements on retained earnings

Prepare the consolidated statement of profit or loss and movements on retained earnings

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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P Co acquired 60% of the equity of S Co on 1 April 20X5. The statements of profit or loss of the two companies for the year ended 31 December 20X5 are set out below. P Co $ S Co Revenue Cost of sales Gross profit Administrative expenses Profit before tax Income taxes Profit for the year Note. 170,000 65,000 105,000 43,000 62,000 23,000 39,000 80,000 36,000 44,000 12,000 32,000 8,000 24,000 Retained earnings brought forward 81,000 40,000 Retained earnings carried forward 108,000 58,000 Required Prepare the consolidated statement of profit or loss and movements on retained earnings
Transcribed Image Text:P Co acquired 60% of the equity of S Co on 1 April 20X5. The statements of profit or loss of the two companies for the year ended 31 December 20X5 are set out below. P Co $ S Co Revenue Cost of sales Gross profit Administrative expenses Profit before tax Income taxes Profit for the year Note. 170,000 65,000 105,000 43,000 62,000 23,000 39,000 80,000 36,000 44,000 12,000 32,000 8,000 24,000 Retained earnings brought forward 81,000 40,000 Retained earnings carried forward 108,000 58,000 Required Prepare the consolidated statement of profit or loss and movements on retained earnings
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