Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question 1 On 1 July 2014 Kam Ltd acquired all the share capital of Maria Ltd when the equity of Maria Ltd consisted of the following: 100 000 ordinary shares issued at $1 paid to 75c each $75 000 General Reserve 15 000 Retained Earnings 12 000 All identifiable assets and liabilities of both companies were recorded at fair value except: Carrying Amount Fair Value Inventory $20 000 $25 000 Machinery (net) 80 000 95 000 The machine has a further 5 year life. Of the inventory on hand at 1 July 2014, 90% was sold by December 2014. At 1st July 2014 Maria Ltd was involved in a court case with an entity that was claiming damages from it. Maria ltd had not raised the liability in relation to expected damages. Kam Ltd measured the fair value of the liability at $5 000. By 31st December 2014 the expectation of winning the court case had improved, so the fair value considered to be $ 1 000. The tax rate is 30%. Valuation adjustments are made on consolidation. On 1 November 2014 Kam Ltd transferred $6 500 out of Retained Earnings in existence at 1 July 2014 to General Reserve account. On 1 December 2014, Maria Ltd made a call of 25 c per share; all call money being received by 20th December 2014. At 31 December 2014 the statement of Financial position of Kam Ltd showed shares in Maria Ltd at $147 250. REQUIRED Prepare the consolidation worksheet entries for the preparation of the consolidated financial statements for Kam Ltd and its subsidiary Maria Ltd, as at 31 December 2014. Show all workings Question 2 Statement of profit or loss and other comprehensive income (classify expenses by function), statement of financial position and statement of changes in equity The trial balance of Black Hole Ltd at 30 June 2018 was as follows: Debit Credit Share capital (ordinary share$2, fully paid) General reserve Retained earnings (1/7/17) Revaluation surplus Mortgage loan Bank overdraft (at call) 7% debentures Interest payable Accounts payable Dividend payable Current tax liability Provision for employee benefits Deferred tax liability Allowance for doubtful debts Accumulated depreciation - plant & Equip Accumulated impairment - goodwill Cash Accounts receivable Inventory Prepaid insurance $ 500 58 000 87 700 7 000 $ 200 000 25 000 128 400 85 000 250 000 69 200 80 000 2 800 69 500 10 000 52 100 34 200 18 400 12 800 42 500 10 000 Plant and equipment Land Buildings Goodwill Deferred tax asset Sales revenue Cost of sales Administrative expenses Other expenses Interest revenue Dividends revenue Income tax expense Dividends paid Dividends declared Transfer to general reserve 222 500 220 000 380 000 105 000 9 800 450 000 265 000 10 000 50 400 20 000 10 000 25 000 825 000 2 500 3 500 $1 920 900 $1 920 900 Additional information (a) Administrative expenses for the year include interest expense of $28 700. (b) All assets are carried at cost, except for land and buildings which are carried at valuation. (c) During the year, 50 000 shares were issued at an issue price of $2 each, payable in full on application. (d) On 30 June 2018, the directors revalued land and buildings. The revaluation was based on an independent valuation received from FJ Holden, Registered Valuer. The valuation was based on fair values. The carrying amounts of land and buildings before the revaluation were $195 000 and $350 000 respectively. (e) The mortgage loan is repayable in annual instalments of $50 000 due on 1 March each year. (f) The 7% debentures are to be redeemed on 31 March 2019. There is no plan to refinance these debentures in the future. (g) The provision for employee benefits consists of: Annual leave Long-service leave $18 000 16 200 (h) No employee is eligible for long-service leave until 2022. (i) The company tax rate is 30%. Required A. Prepare a statement of profit or loss and other comprehensive income for Black Hole Ltd for the year ended 30 June 2018, according to the requirements of AASB 101 (classify expenses by function). B. Prepare a statement of financial position for Black Hole Ltd as at 30 June 2018 to comply with AASB 101. C. Prepare a statement of changes in equity for Black Hole Ltd for the year ended 30 June 2018, according to the requirements of AASB 101. [Comparative information must be disclosed in respect of the preceding period for all amounts reported in the current period's financial statements in accordance with AASB 101 paragraph 38. However this information is not provided in the question].
an asset not an automobile put in service in june 2012 has a depreciable basis of 35000 and a recovery period of 5
Analogue Technology has preferred stock outstanding that pays $9 annual dividend. It has a price of $76. What is the required rate of return (yield) on the preferred stock?
in 2013 tommys construction corp began construction work under a three- year contract. the contract price is 1600000.
Edward Dorsey is a part-time employee
Prepare, in general journal form, the workpaper entries relating to the intercompany sale of equipment that are necessary in the December 31, 2012 consolidated financial statements workpapers.
Determine the number of times interest charges were earned for the current and preceding years and what conclusions can you draw?
analysis of stockholders equitystar corporation issued both common and preferred stock during 20x6. the stockholders
pearson began 2012 with 30000 1 common shares issued and outstanding. paid in capital in excess of par was 25000 and
What does it mean when the return on assets 5% is greater than the return on stockholders' equity 3.75%?
Match items on the right with those on the left by placing the letter of the best match in the space provided Temporarily restricted net asset
lance lawn services reports warranty expense by estimating the amount that eventually will be paid to satisfy
assume the colorado avalanche purchased new zamboni machine to scrape the ice off the rink between periods. the zamboni
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd