Tinto Ltd obtained control of Suda ltd by acquiring 80% of the issued share capital of Suda ltd at 1 January 2015. The consideration is to be settled as follows: · A cash payment of R1 000 000 · The fair value of machine is R500 000 is recorded in Tinto ltd · Tinto ltd will issue new shares to the seller, to the value of R600 000
Q: On January 2, 2022, Honesty Corporation purchased 80% of the THO outstanding shares of Character…
A: Consolidated net income is the total income of the group reduced by inter-company eliminations.
Q: During the 2022 financial year, SendIT Limited and Wheels Limited incorporated SW Traders Limited.…
A: IFRS are issued by the IFRS foundation. IFRS stands for International Financial Reporting Standards.…
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: on (debit balance) te the gain on acquisition and prepare Phelps' journal entry to record the…
A: Balance sheet refers to the form of financial document of a company that reflects the year end…
Q: Tinto Ltd obtained control of Suda ltd by acquiring 80% of the issued share capital of Suda ltd at 1…
A: Journal entry is a primary entry that record the financial transactions initially. The transactions…
Q: QUESTION 2 On 1 January 2020, Nazirah Bhd purchased 200,000 ordinary shares of Naif Bhd at RM15 per…
A: Put options: It is a contract in which the owner does not get an obligation, but gets the right but…
Q: B. On 1 July 2020 Comby Bhd. and Diandra Bbd each acquired 30 per cent of the ordinary shares that…
A: As per IAS 28, Investment in associates and joint venture, the investment in the associate should be…
Q: Problem 3 On January 1, 20x9, Maykaya Corporation acquired 80 percent of Galisod Company's common…
A: In this question, we need to determine those answers as required. The questions are dealt with the…
Q: Question-4 H Ltd acquired 80% of S Ltd several years ago for Rs. 30 million. The balance on S Ltd's…
A: Consolidated financial statement It is a combination of a financial statement of a parent company…
Q: Answer for question A is required
A: Functional currency can be defined as the currency which is used by the business organizations to…
Q: On January 1, 2022, P Co acquired 75% of S Co common stock for $344,000 in cash, At the acquisition…
A: Answer:- Non-controlling interest - It is an ownership position where shareholder owns less than 50%…
Q: Tinto Ltd obtained control of Suda ltd by acquiring 80% of the issued share capital of Suda ltd at 1…
A: Journal entry is a primary entry that records the financial transactions initially. The transaction…
Q: What amount should be recorded as non-controlling interest in the net assets of Mahlangu Limited in…
A: Given in the question: Mashego Limited Mahlangu Limited Total Assets 504000 216000…
Q: Q2 Petro Ltd acquired 60% of Carlos Ltd’s 500,000 R1 equity shares on 1st January 2019 for a…
A: Answer:- Goodwill meaning:- When a buyer purchases an established firm, goodwill, which is an…
Q: Q1 Mcgregor Plc acquired 75% of the issued share capital and voting rights of Tavernier Ltd on 1…
A: In this question, we need to adjust the closing stock value which is unsold
Q: Measurement – IFRS 9 Financial Instruments StartUp Ltd. acquires corporate bonds in the amount of…
A: IFRS 9 establishes principles for financial instruments. The main objectives of IFRS 9 are to…
Q: Required: Prepare the journal entries for Fisher for the years of 2023 and 2024. Note: If no entry…
A: In accounting, the equity method is employed when an entity acquires a significant but not…
Q: Entity A invested in 3,386,000 shares of a listed company on 1 October 2023 at a cost of $3.68 per…
A: Balance sheet stands for the statement and information that shows the assets and liabilities of the…
Q: QUESTION 8 Grandview Ltd acquired 100% of the issued capital of Electro Ltd on 1 July 2021 for…
A:
Q: Question 1 On 2 July 2005, H Ltd. purchased the entire issued ordinary share capital of S Ltd. On…
A: Consolidation - Consolidation accounting is the procedure used to merge the financial outcomes of…
Q: P Limited obtained control with the acquisition of an 80% equity interest in the share capital of S…
A: Acquirer is the company which invest in the equity of the other company. It is also written as…
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: Question #10: Argossey Corp owns a 70% equity interest in Gramcercy a subsidiary company. During the…
A: Definition: Non-controlling interest: The non-controlling interest can be presented in the financial…
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: On August 31, 2020, SG Corporation (SME) purchased all the net assets of Popsters Corporation by…
A: Purchase consideration = Cash paid + fair value of shares + consulting fees + listing fee
Q: Q5 On 3 May 2016, Mashego Limited acquired 75% (and control) of Mahlangu Limited’s outstanding…
A: According to the given question, we are required to compute the investment in the subsidiary in the…
Q: Question 1 Laduan Co is the parent company of a group undergoing rapid expansion through…
A: Introduction A group of accounting rules called International Financial Reporting Standards (IFRS)…
Q: What should be the amount of Goodwill on December 31, 2020?
A: Shadow company acquired net assets of Recruit company on July 1, 2019 and recorded the value of…
Q: Ditinti Limited acquired 80% (and control) of the shares of Chai Limited at 1 March 2016 when the…
A: Non-controlling interests: Non controlling interest is the portion that is not owned by the parent…
Q: QUESTION 4 On 1 January 2018, Chelsea Ltd acquired 75% of the shares in Orlando Ltd at N$126 000. At…
A: Solution- WN-1 Calculation of net identifiable assets Particulars As on Date of Acquisition…
Q: Humility Inc. acquired 70% interest of Forgiveness Company, a printing business. The sale and…
A: Golden Rules of Accounting: Account Debit Credit Personal Accounts The Receiver The…
Q: QUESTION ONE On January 1, 2022, London CO. made an investment in $40,000 of the 9%, 5-year bonds of…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: Question 2 On January 1, 2020, Party Corporation acquired 70 percent of Selfie Company's common…
A: Since this is a multi-part question, we are going to solve only first three for you. To get the…
Q: PROBLIM 19 At the beginning or 201 tion. Corporetion purchased o of the ordinery sheres outstending…
A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…
Q: curred in the purchase, resul % every June 30 and Decembe t year-end are presented belov 99
A: Transaction costs or the bond issue costs are the expenses that are incurred by the company for…
Q: 100% of the equity share capital of the Duterte Co. was acquired by the Leni Inc. on July 30, 2021.…
A: goodwill under fair value method:- Goodwill=Consideration paid/% acquired-Fair value of assets
Q: uestion One n 30 June 2022 Dark Horse (DH) Ltd acquired 100 per cent of the shares in White Horse…
A: Introduction As per relevant standard if any business is acquired by the an entity then asset and…
Q: Problem 3 On January 1, 20x9, Maykaya Corporation acquired 80 percent of Galisod Company's common…
A: Consolidated financial statements: If an entity (investor company) acquires more than 50% stake in…
Q: c. How much Resulting APIC is to be charged or debited for the stock issuance cost d. How much…
A: According to IFRS 3 Business Combination, the cost incurred for issuing stock shall not be treated…
Q: Assume that Bailey Company gains control of Moloney, its subsidiary, with the purchase of a 30%…
A: Journal entry is the procedure for initially documenting commercial transactions in the books of…
Q: 12 000 4 000 1 nd fittings 1 000 2 000 50 000 10 000 2 30.000
A: As per rule, allowed to answer first question and post the remaining in the next submission.
Q: Question 2 Nick Ltd acquired 100% of the issued capital of Wing Ltd on 1 July 2011 for $270000. The…
A: Comment-Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: None
A: In this solution, we first calculated the present value of the bonds at the date of acquisition…
Q: The total of the balance included in liabilities recognised in the statement of financial position…
A: Liabilities are those debts or items which the company has to pay. It Means Company owes the money…
Question 5
|
Tinto Ltd obtained control of Suda ltd by acquiring 80% of the issued share capital of Suda ltd at 1 January 2015. The consideration is to be settled as follows: · A cash payment of R1 000 000 · The fair value of machine is R500 000 is recorded in Tinto ltd · Tinto ltd will issue new shares to the seller, to the value of R600 000 |
|---|
Journalize the above transaction in the books of Tinto ltd.
Step by step
Solved in 2 steps with 1 images
- Question 5 Canon Ltd owns all the share capital of Brother Ltd. The income tax rate is 30%. During the period ended 30 June 2023, the following transactions took place: (a) Brother Ltd sold inventories costing $75 000 to Canon Ltd. Brother Ltd recorded a $15 000 profit before tax on these transactions. On 30 June 2023, Canon Ltd has none of these goods still on hand. (b) Canon Ltd sold inventories costing $12 000 to Brother Ltd for $27 000. By 30 June 2023, one-third of these were sold to Willow Ltd for $14 250 and one-third to Layla Ltd for $13 500; the rest are still on hand with Brother Ltd. Willow Ltd and Layla Ltd are external entities. (c) On 1 January 2023, Canon Ltd sold land for cash to Brother Ltd at $30 000 above st. The land is still on hand with Brother Ltd. (d) Brother Ltd sold a warehouse to Canon Ltd for $150 000 on 1 July 2022. The carrying amount of this warehouse recognised by Brother Ltd at the time of sale was $123 000. Canon Ltd charges depreciation at a rate of…Q2 Maenetja Limited acquired 1000 shares in Manana Limited on 1 December 2014 at the fair value of R15 per share. Transaction costs amounted to R200. At the date of acquisition the company elected to recognize subsequent changes in the fair value of this investment in other comprehensive income (OCI). The company’s policy is to release any gains or losses resulting from these fair value adjustments to retained earnings when the shares are sold. On 31 December 2014 the market value of Manana Limited’s shares was R18. On 30 June 2015, 200 shares were sold for R19.50. The market value of the shares at 31 December 2015 was R14. What are the correct journal entries that should be recorded initially when the shares purchased on 1 December 2014? Select one: a. DR Investment R15 000DR Transaction costs R200 CR Bank/Liability R15 200 b. DR Investment R15 000…Question 1 Ewig Berhad acquired 800, 000 out of the 1, 000, 000 RM1 ordinary shares of Leben Berhad on 1 January 2020 for RM900, 000 cash. The general reserves and retained earnings of Leben Berhad at the date of acquisition were RM400, 000 and RM250, 000 respectively. Required: (a) What is the percentage of acquisition by Ewig Berhad? (b) What is the corporate relationship in this situation? (c) Based on MFRS 10, briefly explain whether Ewig Berhad exercises control over Leben Berhad. (d) Assuming the proportional net asset method is used, what is the fair value of the NCI? (e) What is the goodwill or bargain purchase?
- P Limited obtained control with the acquisition of an 80% equity interest in the share capital of S Limited on 1 January20.9 and paid R100 000 cash and transferred 10 000 ordinary equity shares in W Limited, with a market value of R4 pershare, to settle the purchase price of R140 000 for the acquisition of an 80% interest.How much will be recorded as the Investment in S Ltd in the separate financial statements of S Ltd?Select one:a.R100 000b.R110 000c.R140 000d.R80 000Appendix 7.0 Acquisition of BELL CorporationOn 1 January 2017, FIBERBOATS acquired 100% of BELL Corporation. FIBERBOATS issued 50,000 shares of its BD0.600 par ordinary shares, with a market price of BD0.400 on the date the acquisition was announced and BD0.800 on the date the acquisition was completed, for all of BELL Corporation ordinary shares. The book value of net assets of BELL Corporation at the date of acquisition was BD10,000. On that date, the fair value of BELL Corporation assets and liabilities equalled their respective carrying amounts with the exception of property, plant and equipment (PPE) that exceeded its book value by BD120,000. The fair value of BELL’s identifiable intangibles (in-process research and development) is BD70,000. The in-process research and development will be amortized over 5 years. Advise the management of FIBERBOATS on the accounting treatment in relation to the acquisition event that occurred on 1 January 2017 (see appendix 7). Your advice should…5 MC Questions On 1 July 2019, Peter Limited acquired all the issued shares of Kerri Limited for $100 000 when the equity of Kerri Limited consisted of: Share capital $70 000 Retained earnings 30 000 The pre-acquisition entry at 1 July 2019 is: a. Shares in Kerri Limited Dr 100 000 Retained earnings Cr 30 000 Share capital Cr 70 000 b. Retained earnings Dr 30 000 Share capital Dr 70 000 Shares in Kerri Limited Cr 100 000 c. Retained earnings Dr 70 000 Share capital Dr 30 000 Shares in Kerri Limited Cr 100 000 d. Goodwill Dr 30 000 Share capital Dr 70 000 Shares in Kerri Limited Cr 100 000
- answer both a and bN 1 Dwani Ltd acquired all the issued shares (cum div.) of Power Ltd for $653 000 on 1 January 2022. At that date, the equity of Power Ltd was recorded as follows. Share capital $ 400 000 General reserve 88 000 Retained earnings 90 000 On 1 January 2022, the records of Power Ltd showed that the company had previously recorded a goodwill at cost of $15 000. Further, Power Ltd had a dividend payable of $25 000, the dividend to be paid in March 2022. All other assets and liabilities were carried at amounts equal to their fair values at the acquisition date, except some inventories recorded at $20 000 below their fair value. Also, Dwani ltd identified at the acquisition date a patent with a fair value of $45 000 that Power Ltd has not recorded in its own accounts. Required: Prepare the consolidation worksheet entries for Dwani Ltd’s group on 30 June 2022 assuming the consideration transferred was $500 000.Produce a consolidated balance sheet for Johnston Group as at 30 September 20X6 consistent with international accounting standards.
- Question 1 On January 2020, RITZ Ltd acquired 80% of the ordinary shares of AUGE Ltd. The group accountant has calculated that the goodwill arising on acquisition was GH₵8,000,000. However, the financial controller has uncovered a number of errors and requires advice about how to resolve them. No entries have been posted in respect of contingent cash consideration that work be paid in 2025 if AUGE meets targets. The contingent consideration had a fair value of GH₵800,000 at acquisition and was calculated using a discount rate of 10% No fair value adjustment has been recorded in respect of AUGE’s non-depreciable land. This land had a carry amount of GH400,000 at acquisition and a fair value of GH₵600,000. AUGE’s brand is internally generated and has not been recognized in the consolidated financial statement. At acquisition it had a fair value of GH₵1,000,000 and a remaining estimated useful life of 5 years. Acquisition cost of GH₵100,000 incurred towards the acquisition process has…Question 6 Week 12 On 1 July 2014 Padma Ltd acquires 25 per cent of the issued capital of Jamuna Ltd for a cash consideration of $360 000.At the date of acquisition, the shareholders’ equity of Jamuna Ltd is:Share capital $450 000Retained earnings $300 000Total shareholders’ equity 750 000Additional information• On the date of acquisition, buildings have a carrying amount in the accounts of Jamuna Ltd of $240 000 and amarket value of $300 000. The buildings have an estimated useful life of 10 years after 1 July 2014.• For the year ending 30 June 2015 Jamuna Ltd records an after-tax profit of $90 000, from which it pays adividend of $30 000.• For the year ending 30 June 2016 Jamuna Ltd records an after-tax profit of $300 000, from which it pays adividend of $150 000.• Assume a tax rate of 30% is assumedRequiredApply equity method of accounting to:(a) Calculate the amount of goodwill at the date of acquisition (b) Prepare the journal entries for the year ending 30 June 2015 (c) Prepare…Q25 On 1 June 2013, Sun Ltd acquired 75% interest (and control) over Savy Ltd by acquiring 570 000 of the issued ordinary shares of Savy Ltd. The consideration paid was settled in cash amounting to R810 000. On this date the retained earnings of Savy Ltd amounted to R125 000 and 760 000 ordinary shares worth R950 000. The Sun Ltd Group measures non-controlling interests in an acquiree at its proportional share of the aquiree’s identifiable net assets at acquisition date (partial goodwill method). On 31 December 2015, goodwill was tested for impairment and it was determined by the directors of Sun Ltd that the goodwill was impaired with R2 750 at the end of the current financial year. The amount that will be disclosed as goodwill in the consolidated statement of financial position of the Sun Ltd Group as at 31 December 2015, is_______. Select one: a. R1 000 b. RNIL c. R269 750 d. R3 750
