statements of financial position of the companies immediately after the acquisition were as follows- Joptin Ltd acquired 100% of the issued capital of Hendrix Ltd on 1 July 20X0 for $290 000. The (all assets stated at their fair values): Statements of Financial Position for the year ended 1 July 20X0 Hendrix Ltd Joplin Ltd 2$ Shareholders' equity Share capital General reserve Retained earnings 400 000 200 000 40 000 20 000 120 000 30 000 Total shareholders' equity 560 000 250 000 Assets Current assets 130 000 55 000 Investment in D Ltd 290 000 310 000 455 000 875 000 Other non-current assets Total assets 365 000 Liabilities Current liabilities 145 000 35 000 Non-current liabilities 170 000 80 000 Total liabilities 315 000 115 000 560 000 250 000 Net assets
statements of financial position of the companies immediately after the acquisition were as follows- Joptin Ltd acquired 100% of the issued capital of Hendrix Ltd on 1 July 20X0 for $290 000. The (all assets stated at their fair values): Statements of Financial Position for the year ended 1 July 20X0 Hendrix Ltd Joplin Ltd 2$ Shareholders' equity Share capital General reserve Retained earnings 400 000 200 000 40 000 20 000 120 000 30 000 Total shareholders' equity 560 000 250 000 Assets Current assets 130 000 55 000 Investment in D Ltd 290 000 310 000 455 000 875 000 Other non-current assets Total assets 365 000 Liabilities Current liabilities 145 000 35 000 Non-current liabilities 170 000 80 000 Total liabilities 315 000 115 000 560 000 250 000 Net assets
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:statements of financial position of the companies immediately after the acquisition were as follows
Problem 12.20 (Goodwill)
Joplin Ltd acquired 100% of the issued capital of Hendrix Ltd on 1 July 20X0 for $290 000. The
(all assets stated at their fair values):
Statements of Financial Position for the year ended 1 July 20X0
Joplin Ltd
24
Hendrix Ltd
%24
Shareholders' equity
Share capital
400 000
200 000
General reserve
40 000
20 000
Retained earnings
30 000
120 000
560 000
Total shareholders' equity
250 000
Assets
Current assets
130 000
55 000
Investment in D Ltd
290 000
310 000
365 000
Other non-current assets
455 000
Total assets
875 000
Liabilities
Current liabilities
145 000
35 000
Non-current liabilities
170 000
80 000
Total liabilities
315 000
115 000
560 000
250 000
Net assets
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