Prepare consolidation journal entries that Large Ltd need

Assignment Help Managerial Accounting
Reference no: EM133008540

Question - Large Ltd owns 100% of the shares of Small Ltd. These shares were acquired on 1 July 2019 for $1 million when the shareholders' funds of Small Ltd were:

Share capital $500,000

Retained earnings $400,000

$900,000

All assets of Small Ltd were fairly stated at acquisition date, except for a land that had a fair value $50000 more than carrying value.

During the 2019/2020 financial year, Small Ltd sold inventory to Large Ltd at a sales price of $200,000. The inventory cost Small Ltd $120,000 to produce. At 30 June 2010 half of the stock was still on hand with Large Ltd. In addition, Small Ltd paid an interim dividend of $40,000 out of post-acquisition profits to Large Ltd during the 2009/2010 financial year. The tax rate is 30%.

Based on the above information, prepare the consolidation journal entries that Large Ltd will need to pass on 30 June 2020.

Reference no: EM133008540

Questions Cloud

Find the amount to be backflushed from Raw : Emmanuel Company has materials cost in the June 1 Raw and In Process of P10,000, Find the amount to be backflushed from Raw
What is the amount of the account investments : What is the amount of the account investments in short-term obligations in transaction that will be carried out on June 15, 2025
Find the total market value of the bond : Cryote issued bonds with a total face value of $100 million in July 20x9. Find the total market value of the bond, assuming that the yield demanded is 10%
What are the respective ending balances of three partners : The partnership consists of Partners A, B and C with ending capital balances based on a ratio of 5:2:3. What are the respective ending balances of three partner
Prepare consolidation journal entries that Large Ltd need : Based on the above information, prepare the consolidation journal entries that Large Ltd will need to pass on 30 June 2020
What is the employee benefit expense for the current year : Fair value of plan assets as of January 1 was P5,500,000 and December 31 P6,300,000, What is the employee benefit expense for the current year
What factors must any company consider before accepting : Technology Inc. Ltd sells desktop computer printers for $65 per unit. What factors must any company consider before accepting a special-order contract
Explain the rule for translating the financial statements : Explain the rule for translating the Financial Statements of Foreign Operations from Functional Currency to Presentation Currency
Calculate the half-yearly payment required : A couple purchased a home and signed a mortgage contract for $500,000 to be paid. Calculate the half-yearly payment required

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd