Reference no: EM13300972
Question
On 1 July 2011, Geraldton Ltd acquired 80% of the share capital of Pilbara Ltd for $132 400. On that date, the statement of financial position of Pilbara Ltd consisted of:
|
Share Capital
|
$125 000
|
|
General Reserve
|
5 000
|
|
Revaluation Reserve
|
7 500
|
|
Retained Earnings
|
5 000
|
|
Liabilities
|
90 000
|
|
|
$232 500
|
|
|
|
|
Cash
|
$ 30 000
|
|
Inventories
|
35 000
|
|
Land
|
32 500
|
|
Plant and equipment
|
150 000
|
|
Accumulated Depreciation
|
(65 000)
|
|
Patent
|
50 000
|
|
|
$232 500
|
All the identifiable assets and liabilities of Pilbara Ltd were recorded at fair value except for:
|
|
Carrying amount
|
Fair value
|
|
Inventories
|
$ 35 000
|
$ 40 000
|
|
Land
|
32 500
|
42 500
|
|
Plant and equipment (cost $100 000)
|
35 000
|
45 000
|
The plant and equipment had a further 5-year life and is depreciated on a straight line basis. The differences between carrying amounts and fair value on acquisition date are adjusted on consolidation. Geraldton Ltd uses the partial goodwill method.
During the year ended 30/6/2012, all inventories on hand at 1/7/2011 were sold. The income tax rate is assumed to be 30%. Also in the current year, Pilbara Ltd sold inventory to Geraldton Ltd for $4000 (cost $2500). One-third of this inventory was on hand at the end of the year.
There were no changes during the year in any element of Geraldton's or Pilbara Ltd's equity except for retained earnings.
The following shows financial information for Geraldton Ltd and Pilbara Ltd for the year ended 30/6/2012.
|
|
Geraldton Ltd
|
Pilbara Ltd
|
|
Sales revenue
|
$100 000
|
$86 000
|
|
Other income
|
42 500
|
17 500
|
|
|
142 500
|
103 500
|
|
Cost of sales
|
81 000
|
64 000
|
|
Other expenses
|
26 500
|
15 500
|
|
|
107 500
|
79 500
|
|
Profit before tax
|
35 000
|
24 000
|
|
Income tax expense
|
10 000
|
9 000
|
|
Profit
|
25 000
|
15 000
|
|
Retained earnings 1/7/2011
|
15 000
|
5 000
|
|
|
40 000
|
20 000
|
|
Interim dividend paid
|
6 000
|
5 000
|
|
Final dividend paid
|
3 000
|
2 000
|
|
|
9 000
|
7 000
|
|
Retained earnings 30/6/2012
|
$31 000
|
$ 13 000
|
Required:
(1) Prepare the consolidation worksheet entries necessary for preparation of the consolidated financial statements for Geraldton Ltd and its subsidiary for the year ended 30/6/2012
(2) Prepare the consolidated statement of comprehensive income and statement of changes in equity for Geraldton Ltd and its subsidiary at 30/6/2012.
|
Compute the location of the final image
: An object is located 15 cm in front of (to the left of) a converging lens with a focal length of 10 cm. To the right of the converging lens, compute the location of the final image
|
|
Explain ammonia gas has a temperature
: If 26.0 g of ammonia gas has a temperature of -6.70 C and a pressure of 535mmHg , what is its volume
|
|
What is the firm disbursement float
: What is the firm's disbursement float, collections float, and net float?
|
|
Calculate the image distance and lateral magnification
: An object is 100 cm in front of a concave mirror that has a radius of 80 cm. Calculate the image distance and lateral magnification
|
|
Prepare the consolidation worksheet entries
: Prepare the consolidation worksheet entries necessary for preparation of the consolidated financial statements for Geraldton Ltd and its subsidiary for the year ended 30/6/2012
|
|
Determine the directing effects of the substituents
: Consider the directing effects of the substituents on salicylamide and predict the possible structures of the iodination products. Which do you think will be the major product? Explain your reasoning
|
|
Find smallest possible nonzero value for thickness of layer
: You are standing in air and are looking at a flat piece of glass (n = 1.52) on which there is a layer of transparent plastic, Find the smallest possible nonzero value for the thickness of the layer
|
|
Calculate the average number in the queue
: Calculate the average number in the queue, average number in the system, average time in the queue, average time in the system, the system utilization rate, and the probability that the system is empty.
|
|
Compute the concentration of an pilocarpine solution
: Calculate the concentration of an pilocarpine solution with a pH = 9.34. The Kb of pilocarpine is 7.41x10-8 i need to know the steps to do problems like this one, if the steps can be simplified that would be great, thanks a lot.
|