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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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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.
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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