Prepare the consolidated worksheet entries

Assignment Help Accounting Basics
Reference no: EM132893706

Exercise 1

Full and partial goodwill method

On 1 July 2019, Rainbow Ltd acquired 80% of the issued shares of Lorikeet Ltd for $165 000. At this date, the equity of Lorikeet Ltd was as follows.

78_figure.jpg

At acquisition date, all the identifiable assets and liabilities of Lorikeet Ltd were recorded at amounts equal to fair value. At 30 June 2021, the equity of Lorikeet Ltd consisted of:

1063_figure1.jpg

A transfer from pre-acquisition retained earnings to general reserve of $10 000 was made dur- ing the year ended 30 June 2020. During the year ended 30 June 2021, Lorikeet Ltd recorded a profit of $15 000.
Required
Prepare the consolidated worksheet entries at 30 June 2021 for Rainbow Ltd assuming:
1. At 1 July 2019, the fair value of the non-controlling interest was $40 000 and Rainbow Ltd adopts the full goodwill method.
2. Rainbow Ltd adopts the partial goodwill method.

Exercise 2

Partial goodwill method

Swamp Ltd acquired 90% of the issued shares (cum div.) of Tortoise Ltd on 1 July 2018 for $237 000. At this date, the equity of Tortoise Ltd consisted of:

979_figure2.jpg

At acquisition date, all the identifiable assets and liabilities of Tortoise Ltd were recorded at amounts equal to fair value. Tortoise Ltd had recorded a dividend payable of $10 000, which was paid in August 2018, and goodwill of $5000.

At 30 June 2020, the equity of Tortoise Ltd consisted of:

1912_figure3.jpg

During the year ended 30 June 2020, Tortoise Ltd recorded a profit of $20 000. Required

Prepare the consolidated worksheet entries at 30 June 2020 for Swamp Ltd assuming: Swamp Ltd adopts the partial goodwill method.

Reference no: EM132893706

Questions Cloud

Who is the highest ranking academic administrator : 1 Who is the highest- ranking administrator under the Liberty University Board?
What is the definition of a fair trade company : What is the definition of a "Fair Trade company"
Prepare the journal entry to record amortization expense : Its estimated useful life is 5 years. Prepare the journal entry to record amortization expense for the first year
Cooperative advertising budget of competitors : A manufactured-good firm finds that its market share has been slipping in a geographic market. It chooses to conduct a benchmarking study of its price waterfall
Prepare the consolidated worksheet entries : Prepare the consolidated worksheet entries at 30 June 2020 for Swamp Ltd assuming: Swamp Ltd adopts the partial goodwill method
Calculate Klyne Corporation break-even point in sales dollar : Calculate Klyne Corporation's break-even point in sales dollars for the year 2020 if the company had hired its own sales force to replace the network of agents
What is the amount of the organizational expenditures : Caskets Inc. was incorporated in June 1, but it did not start a business until September 1. What is the amount of the organizational expenditures
Polycentrism in the context of international business : Differentiate between ethnocentrism, geocentricism and polycentrism in the context of international business.
Prepare the correcting entries : Received $700 cash from a customer on account. Cash was debited $700 and Service Revenue was credited $700. Prepare the correcting entries

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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