Answer To: 1/07/2017 Chief Ltd acquired: 100% of the issued shares of Sub Ltd for: #VALUE! At the date of...
Pranjal answered on May 31 2021
Instructions
REQUIRED:
1. Before you start the assignment, you must enter your 9-digit student ID in the "Background information" sheet (cell B3), shaded in green.
2. You are required to complete only the following 2 sheets:
Sheet 3: Consolidated Journal Entries, and
Sheet 4: Consolidated Worksheet
In each sheet, you can only enter data in the yellow shaded cells. All other cells and sheets have been protected to ensure the integrity of the assignment. When calculating dollar values, round to the nearest dollar.
3. "Consolidated Journal Entries" sheet (Sheet 3)
In this sheet, you are required to complete two (2) sections:
1) Acquisition analysis
Based on the information in the "Background information" sheet, provide the required calculations at acquisition date.
2) Consolidation Adjustments at 30/6/2020
Use the relevant sub-heading sections available to record any consolidated journal entries you deem necessary at the balance date. The number of rows provided in each sub-heading section is deemed to be more than adequate. Note that you don't need to fill in every single row in order to complete journal entries.
When recording journal entries, no narrations are required and there is no need to indent account names.
4. "Consolidated Worksheet" sheet (Sheet 4)
Post your journal entries from the "Consolidated Journal Entries" sheet into this sheet using columns D (Ref), E and F.
If a particular line item say, Retained Earnings, has several journals to be posted, DO NOT add the journals and post a single value; instead, post the journals individually using the alpha-numeric references provided in the previous sheet. Also, each debit or credit entry should be entered on a separate row.
Finally enter the "Group" totals, this time using only a single value for each line item.
5. "Consolidated income Statement" and "Consolidated Balance Sheet" sheets (Sheets 5 and 6)
These sheets are provided for review and information purposes only - no work is required.
6. Marks are awarded on numbers only, not on account names or descriptions.
7. Submission
Please refer to the "T1 2020 MAA716 Assignment 2 Instruction" file for submission instructions.
Background Information
Background Information:
Student ID
Input student ID here 219081401
Version 1
On 1/07/2017 Chief Ltd acquired: 100%
of the issued shares of Sub Ltd for: $4,344,000
At the date of acquisition, the shareholders’ equity of Sub Ltd consisted of:
Share capital $1,954,800
General Reserve $488,700
Retained earning $366,480
Total Equity $2,809,980
As at 30/06/2020 the accounts of the two companies appear as follows:
Chief Ltd Sub Ltd
$ $
Sales 6,950,500 3,502,800
Cost of Goods Sold 4,170,300 2,276,800
Depreciation expenses 347,500 175,100
Interest expenses 278,000 71,610
Other expenses 656,400 145,290
Other Income
Interest revenue 107,400 0
Dividend revenue 380,100 0
Income tax expense 595,700 250,200
Net Profit after Tax 1,390,100 583,800
Retained earnings (01/07/2019) 2,085,100 610,800
Available for appropriation 3,475,200 1,194,600
Interim dividend paid 325,800 162,900
Final dividend declared 543,000 217,200
Retained earnings (30/06/2020) 2,606,400 814,500
Share Capital 5,647,200 1,954,800
General reserve 434,400 488,700
Total Owner's Equity 8,688,000 3,258,000
Debentures (due 30/06/2022) 0 651,000
Dividend payable 543,000 217,200
Deferred Tax Liability 651,600 54,300
Other liabilities 977,400 163,500
Total Liabilities 2,172,000 1,086,000
Total Liabilities & Owner's Equity 10,860,000 4,344,000
Assets
Dividend receivable 217,200 0
Inventory 1,520,400 260,600
Non-current assets (depreciable) 2,932,200 1,737,600
Accumulated...