Question1 a) On 31 December 2018 Pee Plc purchased 80% of the share capital of Cee Ltd for £60,000 when its accumulated profits were £30,000. The individual Statement of Financial Positions of PeePlc and CeeLtdat 31December2020were as follows: Рее Cee Cee Ltd £ £ Non-current assets: Property, plant and equipment 160,000 50,000 Cost of investment 60,000 00000 220,000 50,000 Current assets 30,000 10,000 Total assets 250,000 60,000 Equity and liabilities Ordinarysharesof£leach Retained profits 100,000 20,000 150,000 40,000 250,000 60,000 Consolidated goodwill is subject to an annual impairment review. No impairment has been detected to date. Required: Prepared the consolidated statement of financial position for the Pee group at 31 December 2020. Pee plc has a policy of valuing Non-Controlling interest at their share of net assets at acquisition.

Question1 a) On 31 December 2018 Pee Plc purchased 80% of the share capital of Cee Ltd for £60,000 when its accumulated profits were £30,000. The individual Statement of Financial Positions of PeePlc and CeeLtdat 31December2020were as follows: Рее Cee Cee Ltd £ £ Non-current assets: Property, plant and equipment 160,000 50,000 Cost of investment 60,000 00000 220,000 50,000 Current assets 30,000 10,000 Total assets 250,000 60,000 Equity and liabilities Ordinarysharesof£leach Retained profits 100,000 20,000 150,000 40,000 250,000 60,000 Consolidated goodwill is subject to an annual impairment review. No impairment has been detected to date. Required: Prepared the consolidated statement of financial position for the Pee group at 31 December 2020. Pee plc has a policy of valuing Non-Controlling interest at their share of net assets at acquisition.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: he following is an extract from the trial balance of Tempo Ltd on 30 June 2022: £ Land and buildings…

A: It is the analysis of a company's performance under different dimensions such as profitability,…

Q: Jesse Ltd SoFP at 31/12/2024 £'000 Buildings £'000 1,800 Equipment 2,100 £1NV Shares 975 Inventory…

A: Detailed explanation:Original Statement of Financial Position (SoFP) as at 31/12/2024Before…

Q: Kevin Plc acquired 70% of Carl Ltd on 1 April 2021 for £3,250,000 when Carl's retained earnings were…

A: According to the given question, we are required to select the correct options from the given…

Q: Land and buildings 114 000 Equipment 210 000 Investment (80 000 shares of £1 each in Rhythm Ltd at…

A: Ratio Analysis : Ratio analysis is the numerical relation among the items of the financial…

Q: Hello, I saw your answer and explanation for the following question: On 31 December 2018 Pee Plc…

A: Non-controlling interest is described as that percentage of the subsidiary company which is not…

Q: The following information is available for a FVTOCI investment: Purchase price $400,000; Unrealized…

A: To calculate the balance in the Accumulated Other Comprehensive Income (AOCI) equity holding account…

Q: Question 5 On May 31, 2023, Rooney Company paid $2,100,000 to purchase Frances Corporation, which…

A: Impairment loss involves reducing the recorded value of an asset when its recoverable value is less…

Q: QQ 14. Kelly Ltd acquired 70 per cent of the share capital of Slater Ltd on 1 July 2022 for a cost…

A: Consolidation: Consolidation refers to the process of combining the financial statements of multiple…

Q: ing the newly acquired subsidi 52,000 that was unrecorded or book value was attributed to

A: The consolidated financial statement as,

Q: At the beginning of current year, Definite Company acquired the following assets: Residual Useful…

A: Depreciation represents the reduction in the hysterical cost of the asset acquired by the business…

Q: TQ2). Maisara Bhd (MB) purchased Jujur Sdn Bhd (JSB) on 1 January 2009. On the date of purchased the…

A: Workings for Consolidated Financial StatementsWorkings for Non-Controlling Interest:NCI = Fair value…

Q: On 1 July 2014 Padma Ltd acquires 25 per cent of the issued capital of Jamuna Ltd for a cash…

A: Equity method of accounting:- This method is used when one company invests in another company and…

Q: What amount of gain or loss would YOO-YOO Corporation report in its income statement for the year…

A: Net Gain or loss = Fair Value as on 12/31/22 - Fair Value as on 12/31/21

Q: 2. Using the equity method, what is the investment income and the balance sheet investment account…

A: Assets are the resources or rights held by the business. These can be current assets or non-current…

Q: Suppose that AXE company acquires exactly 25% of the voting common stock of Company SARDAR Inc. for…

A: In case of an entity having significant influence i.e. less than 50% stake in other entity. The…

Q: 2, ABC Ltd acquired all the issued shares of XYZ Ltd for $280,000. At this date, the equity of XYZ…

A: Corporate business is when one company buys the business of another company. The purchasing company…

Q: On 1 July 2015, Ausra purchased 75% of Danute by way of a share exchange of two new shares in Ausra…

A: It refers to the process of combining the financial statements of a parent company and its…

Q: 2nd Quarter 350,000 340,000 365,000 465,000 Provide the under/(over) valuation of the entity to be…

A: The price-to-earnings ratio (P / E) is related to the company's price and earnings per share. A high…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

he following is an extract from the trial balance of Tempo Ltd on 30 June 2022:£Land and buildings 114 000Equipment 210 000Investment (80 000 shares of £1 each in Rhythm Ltd at cost price) 650 000Inventory (30/6/2008 - £382 000) 418 000Trade receivables (30/6/2021 – £180 000) 206 000Cash and cash equivalents 92 000Share capital:Ordinary share capital including premium 450 000Preference share capital 200 000Retained earnings:Balance – beginning of year 160 000Retained profit for the year 40 00012% Long term loan 420 000Trade payables (30/6/2021 – £190 000) 210 000Tax payable 110 000Dividends payable 100 000Additional information:1. Issued share capital:- 400 000 ordinary shares of £1 each- 40 000 10% preference shares of £5 each.2. Gross profit for the year amounted to £1 344 000 and represents 40% of turnover for the year.3. All sales and all purchases are on credit.4. Income from investment for the year amounted to £24 000.5. The dividends payable represents the total amount of…
Orange LTD has the following investments at December 31, 2020; Fair value Historical cost Sept 30, 2019 $15,000 Fair value Sept 30, 2020 $25,000 Fair value Dec 31, 2020 $30,000 Shares of DEF Bonds of Brooke purchased at par value) Shares of CooksTown Shares of Tulip $25,000 10,000 12,000 18,000 12,000 18,000 16,500 11,000 16,000 19,500 12,500 16,000 20,500 Orange, whose year-end is Sept. 30, purchased the share of Tulip on January 1, 2019, If Orange irrevocably elected to classify its investment in Tulip at fair value through OCL what amount will be reported in other comprehensive income at September 30, 2020? $1,500 gain O $2,500 gain. et O $19,500 O $3,000 gain.
.Miner Ltd acquired 75% of the share capital of Iver Ltd (Iver) for £1.2m three years ago, when Iver 's net assets were £1.4m. As at 31 August 2020, Iver has net assets of £1.75m.What figures would be included in the consolidated Statement of FinancialPosition as at 31 August 2020 for the Miner Group to reflect the ownership of Iver Ltd?a) Goodwill £200,000Non-controlling interest £1,312,500b) Goodwill £150,000Non-controlling interest £437,500c) Goodwill £150,000Non-controlling interest £1,312,500d) Goodwill £200,000Non-controlling interest £437,500 Show working
The following is an extract from the trial balance of Tempo Ltd on 30 June 2022:£Land and buildings 114 000Equipment 210 000Investment (80 000 shares of £1 each in Rhythm Ltd at cost price) 650 000Inventory (30/6/2008 - £382 000) 418 000Trade receivables (30/6/2021 – £180 000) 206 000Cash and cash equivalents 92 000Share capital:Ordinary share capital including premium 450 000Preference share capital 200 000Retained earnings:Balance – beginning of year 160 000Retained profit for the year 40 00012% Long term loan 420 000Trade payables (30/6/2021 – £190 000) 210 000Tax payable 110 000Dividends payable 100 000Additional information:1. Issued share capital:- 400 000 ordinary shares of £1 each- 40 000 10% preference shares of £5 each.2. Gross profit for the year amounted to £1 344 000 and represents 40% of turnover for the year.3. All sales and all purchases are on credit.4. Income from investment for the year amounted to £24 000.5. The dividends payable represents the total amount of…
A owns 80% of B & 40% of C, purchased when B's reserve was £6,000, & C's £1,000. B's net assets at acquisition were £25,000. Balance Sheets at 31-Dec-21 Investment in B Investment in C Other Net Assets ₤1NV Shares Reserves Profit/Loss Required: For the ABC group at Ye-Dec-21 prepare a) Group Balance Sheet, A Ltd B Ltd C Ltd 24,000 13,000 34,000 29,000 16,000 71,000 29,000 16,000 40,000 15,000 10,000 25,000 10,000 4,000 6,000 4,000 2,000 71,000 29,000 16,000 b) Group Income Statement, and c) Explain subsidiary and associate accounting treatments in group accounting. For group and parent interests calculate d) Return on Equity, and e) Earnings per Share