Prepare the equity accounting journals at july

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Question - Arya Ltd acquired 25% of the voting shares of Brya Ltd on 1 July 2014 for $80,000. At the date of acquisition the shareholders equity of Brya is as follows:

Share Capital $220,000

Retained earnings $100,000

320,000

All assets are recorded at their fair value

The following information relates to Brya Ltd:

Profit /loss after tax as of 30/6/15 are $60,000, dividend paid $20,000, ARR balance $2,000.

Required -

(a) Prepare the equity accounting journals at 1 July 2014 and 30 June 2015 assuming that Arya does not prepare consolidated financial statements.

(b) Calculate Value of equity for Brya Ltd.

Reference no: EM133017039

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