Question 9 The following statements of financial position have been prepared at 31 December 2008: Smith Ltd Jones Ltd $ $ Non-current assets Property, plant and equipment Shares in Jones (120,000 shares) Current assets Total assets Equity Share capital ($0.2 shares) Retained earnings Current liabilities Total equity and liabilities 85,000 60,000 145,000 160,000 305,000 100,000 70,000 170,000 135,000 305,000 18,000 18,000 84,000 102,000 30,000 25,000 55,000 47,000 102,000 4 Smith Ltd acquired its holding in Jones Ltd on 31 December 20X7, when Jones' retained earnings stood at $20,000. At this date, the fair value of items of property, plant and equipment was estimated as being $10,000 higher than their book value. The remaining life of these assets at 31 December 20X7 was estimated at five years and Jones uses the straight-line method of depreciation. Prepare the consolidated statement of financial position of Smith Ltd at 31 December 20x8.
Question 9 The following statements of financial position have been prepared at 31 December 2008: Smith Ltd Jones Ltd $ $ Non-current assets Property, plant and equipment Shares in Jones (120,000 shares) Current assets Total assets Equity Share capital ($0.2 shares) Retained earnings Current liabilities Total equity and liabilities 85,000 60,000 145,000 160,000 305,000 100,000 70,000 170,000 135,000 305,000 18,000 18,000 84,000 102,000 30,000 25,000 55,000 47,000 102,000 4 Smith Ltd acquired its holding in Jones Ltd on 31 December 20X7, when Jones' retained earnings stood at $20,000. At this date, the fair value of items of property, plant and equipment was estimated as being $10,000 higher than their book value. The remaining life of these assets at 31 December 20X7 was estimated at five years and Jones uses the straight-line method of depreciation. Prepare the consolidated statement of financial position of Smith Ltd at 31 December 20x8.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Question 9
The following statements of financial position have been prepared at 31 December 20X8:
Smith Ltd
$
Non-current assets
Property, plant and equipment
Shares in Jones (120,000 shares)
Current assets
Total assets
Equity
Share capital ($0.2 shares)
Retained earnings
Current liabilities
Total equity and liabilities
85,000
60,000
145,000
160,000
305,000
100,000
70,000
170,000
135,000
305,000
Jones Ltd
$
18,000
18,000
84,000
102,000
30,000
25,000
55,000
47,000
102,000
4
Smith Ltd acquired its holding in Jones Ltd on 31 December 20X7, when Jones' retained earnings
stood at $20,000. At this date, the fair value of items of property, plant and equipment was
estimated as being $10,000 higher than their book value. The remaining life of these assets at 31
December 20X7 was estimated at five years and Jones uses the straight-line method of depreciation.
Prepare the consolidated statement of financial position of Smith Ltd at 31 December 20X8.
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