please do it
The submission date has been extended to Monday 7 May 2018 at 11:45pm AEST ACCT20073 Term 1 2018 Part C Assignment 30 Marks Hahndorf Ltd acquired 100% of the shares of Sarina Ltd on 1 July 2015 for $700,000, when the equity of Sarina Ltd consisted of: Share Capital$500,000 General Reserve80,000 Retained Earnings30,000 All identifiable assets and liabilities of Sarina Ltd were fairly valued at acquisition except the machinery, which had a fair value of $140,000. The machinery had a further 7-year life with depreciation based on the straight-line method. Selected financial information for both companies at 30 June 2018 is as follows: Hahndorf LtdSarina Ltd Sales revenue $1,000,000$800,000 Cost of sales(600,000)(600,000) Gross profit400,000 200,000 Dividend received from Sarina Ltd30,000 - Management fee received26,500 - Gain on sale of plant35,000 - Admin expenses55,800 28,700 Depreciation29,500 56,800 Management fee paid- 26,500 Other expenses306,200 8,000 Profit before tax100,000 80,000 Tax expense(30,000) (24,000) Profit for the period70,000 56,000 Retained earnings at 1/7/17230,000 120,000 300,000 176,000 Dividend paid(20,000) (10,000) Dividend declared(40,000) (20,000) Retained earnings at 30/6/18240,000 146,000 Share capital900,000 500,000 General reserve60,000 80,000 Total equity1,200,000 726,000 Dividend payable40,000 20,000 Other liabilities (note 1)120,000 30,000 Total equity and liabilities1,360,000 776,000 Shares in Sarina Ltd700,000 - Dividends Receivable20,000 - Inventory40,000 50,000 Other assets (note 2)600,000 726,000 Total assets1,360,000 776,000 Notes 1. Other liabilities include deferred tax liabilities 2. Other assets include Land, Machinery, Equipment, and Accumulated depreciation and Impairment losses, and Deferred Tax asset. Other information: · During the 2017-18 period, Sarina Ltd sold some items of inventory to Hahndorf Ltd for $92,000, recording a profit before tax of $12,000. Hahndorf Ltd has since resold half of these items. · During the 2016-17 period, Hahndorf Ltd sold some items of inventory to Sarina Ltd. At 30 June 2017, Sarina Ltd still had inventory on hand on which Hahndorf Ltd had recorded a before-tax profit of $16,000. All this inventory has been sold during the 2017/18 financial year. · During the year, Hahndorf Ltd made total sales to Sarina Ltd of $60,000. Sarina Ltd sold all these goods to customers outside the group. · On 1 July 2017 Hahndorf Ltd sold an item of plant to Sarina Ltd for $116,000 when its carrying value in Hahndorf Ltd’s accounts was $81,000 (cost $135,000, accumulated depreciation $54,000). This plant is assessed as having a remaining useful life of five years. The Group has a policy of measuring its property, plant and equipment using the ‘cost model’. · Sarina Ltd paid $26,500 in management fees to Hahndorf Ltd. · The company income tax rate is 30%. Required (a)Prepare the consolidation journal entries for the above entities as at 30 June 2018, excluding those already done in Part B of this assessment task. Use reference numbers starting at (f) to number the journals. (18.5 marks) (b)Prepare the consolidated worksheet for the year ended 30 June 2018. Post all consolidation journal entries to the consolidated worksheet. Use the reference numbers (a) to (e) for the journals of Part B and (f) onwards for the journals in Part C when posting these journals to the consolidated worksheet. (11.5 marks) Formatting Please be mindful that assignments are marked in soft copy. To assist with making the marking process efficient, effective and not time-consuming, you must comply with the following formatting requirements: · Document type: Your answer must be in Word format. This will allow the marker to use track-changes to indicate where you received marks. Please do not submit a pdf document as this will not be marked. Also, please do not submit an excel file for your figures and calculations or copy and paste a table from an excel spreadsheet for any calculations into your Word document. Use the “insert table” function within Word and type all figures into a table. Show all calculations below the table. Ensure the marker will be able to use the track-changes function in Word to indicate in your table where you received or lost marks for your figures. · Page: Portrait orientation · Footer: Your full name(s) and student ID(s), page number and number of pages (e.g. Cat Bird s0123456, page 1 of 3) · File saving convention: Include your student name(s) in the name of the file when you save the document, and ensure that you include the appropriate .doc or .docx at the end. For example, save your file as: Cat Bird.docx 1