Homework Help is Here – Start Your Trial Now!
Business
Accounting
Required: Prepare all the necessary consolidation journal entries at 31 December 20X5, the year-end. Note 1) Use the provided journal entry template to enter your answer. 2) Workings/calculations or narrations are NOT required.

Required: Prepare all the necessary consolidation journal entries at 31 December 20X5, the year-end. Note 1) Use the provided journal entry template to enter your answer. 2) Workings/calculations or narrations are NOT required.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Jenna Ltd acquired all the equity in Cooper Ltd on 31 December 20X4 for $450 000. At the control date, the equity of Cooper was recorded as paid-up capital of $300 000 and retained profits of $120 000. The purchase price was based on the agreed fair values of Cooper's identifiable assets and liabilities on that date. The following items were not at fair value in Cooper's financial statements on the control date. Inventories Plant (Cost of $400 000, Accumulated depreciation of $51 200) Carrying amount 20 000 348 800 Fair value 27 000 308 800 Other information: • All the inventories held by Cooper at the control date were sold during FY20X5. • Both Cooper and the group entity account for their plant by the cost model, and apply straight-line depreciation to the plant. The plant in Cooper Ltd is expected to have a remaining useful life of 10 years from 31 December 20X4, and no residual value. • Jenna sold goods to Cooper for $6 000 during FY20X5, the cost of these inventories was $3 500. All these inventories were still on hand by Cooper by 31 December 20X5, the year-end. Required: Prepare all the necessary consolidation journal entries at 31 December 20X5, the year-end. Note 1) Use the provided journal entry template to enter your answer. 2) Workings/calculations or narrations are NOT required.
Transcribed Image Text:Jenna Ltd acquired all the equity in Cooper Ltd on 31 December 20X4 for $450 000. At the control date, the equity of Cooper was recorded as paid-up capital of $300 000 and retained profits of $120 000. The purchase price was based on the agreed fair values of Cooper's identifiable assets and liabilities on that date. The following items were not at fair value in Cooper's financial statements on the control date. Inventories Plant (Cost of $400 000, Accumulated depreciation of $51 200) Carrying amount 20 000 348 800 Fair value 27 000 308 800 Other information: • All the inventories held by Cooper at the control date were sold during FY20X5. • Both Cooper and the group entity account for their plant by the cost model, and apply straight-line depreciation to the plant. The plant in Cooper Ltd is expected to have a remaining useful life of 10 years from 31 December 20X4, and no residual value. • Jenna sold goods to Cooper for $6 000 during FY20X5, the cost of these inventories was $3 500. All these inventories were still on hand by Cooper by 31 December 20X5, the year-end. Required: Prepare all the necessary consolidation journal entries at 31 December 20X5, the year-end. Note 1) Use the provided journal entry template to enter your answer. 2) Workings/calculations or narrations are NOT required.
Expert Solution
steps

Step by step

Solved in 3 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS