Prepare the consolidation journal entries that Large Ltd

Assignment Help Accounting Basics
Reference no: EM133014284

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: EM133014284

Questions Cloud

Imitate zara supply chain as a capability : 1. How easy or difficult do you think it would be for competitors to imitate Zara's supply chain as a capability?
How much must you save each year : If the interest rate is 6 percent per year, how much must you save each year to meet your retirement goal
What is the profit or loss at the profit-maximizing output : What is the profit or loss at the profit-maximizing output? Show your work
Explain and discuss the different measurement bases : Explain and discuss the different measurement bases used in financial reporting and provide examples for elements in the financial statements
Prepare the consolidation journal entries that Large Ltd : During the 2019/2020 financial year, Small Ltd sold inventory to Large Ltd at a sales price of $200,000. Prepare consolidation journal entries that Large Ltd
How much is the individual capital of alpha and charlie : The excess is considered as a revaluation (goodwill) to be recognized. How much is the individual capital of Alpha and Charlie after the withdrawal of Beta
Calculate the forward rate with quarterly compounding : The six-month rate is 14% per annum and the nine-month rate is 15% per annum with continuous compounding. Calculate the forward rate with quarterly compounding
Calculate its ending cash balance : Wobble Inc. has a beginning cash balance of $5,980. Its liquidity metric for the period has increased by $1,972. Calculate its ending cash balance
Prepare a cash budget for the first two quarters : Additional data: Equipment was sold in July for $8,000 and $4,500 in November. Prepare a cash budget for the first two quarters

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