Reference no: EM13491573
On 1 July 20x1, Ren Ltd acquired a 30% interest in Wei Ltd at a cost of $120,000. The shareholders' equity of Wei Ltd at the above date was:
$ Share capital - 160,000 ordinary shares of $1 fully paid 160,000 Retained earnings 80,000
All the identifiable net assets of Wei Ltd were recorded at fair value. Summarised information on profit and loss and appropriations of Wei Ltd as at 30 June 20x3 appears below: $ Operating profit before income tax 2,840,000 Income tax expense (1,360,000) Operating profit after income tax 1,480,000 Retained earnings at 1 July 20x2 128,000 1,608,000 Dividends paid (400,000) Retained earnings at 30 June 20x3 1,208,000
The directors have applied the impairment test and determined that a write down of $4,800 is required as at 30 June 20x3.
Additional information:
(a) The shareholders' equity of Wei Ltd at 30 June 20x3 was:
$ Share capital 160,000 Revaluation surplus 240,000 Retained earnings 1,208,000
(b) At 30 June 20x3, Wei Ltd held inventory costing $200,000, which has been purchased from Ren Ltd. A profit of $80,000 before tax has been made on the sale.
(c) The tax rate is 30%.
Required: Assuming Ren Ltd does not prepare consolidated financial statements, prepare the journal entry in the books of Ren Ltd for the year ended 30 June 20x3 to equity account its investment in Wei Ltd.
[adapted from: Dagwell, R., Wines, G. & Lambert, C. (2012). Corporate accounting in Australia: Pearson Australia]
|
The liquid sodium is being considered as an engine coolant
: Liquid sodium is being considered as an engine coolant. How many grams of liquid sodim (minimum) are needed to absorb 4.70 MJ of energy (in the form of heat) if the temperature of the sodiumis not to increase by more than 10.0 C
|
|
What is the electric potential midway between them
: Two point charges, +3.18 µC and -6.65 µC, are separated by 1.13 m. What is the electric potential midway between them
|
|
Explain any additional organic or inorganic reagents
: Propose a synthetic method to carry out the transformation shown, using any additional organic or inorganic reagents. 5 methyl 1 hexyne ----> 7 methyl 3 octene
|
|
How long does it take ilya to cover the distance
: Ilya and Anya each can run at a speed of 8.70 \rm{mph} and walk at a speed of 3.60 \rm{mph}. How long does it take Ilya to cover the distance
|
|
Summarised information on profit and loss
: At 30 June 20x3, Wei Ltd held inventory costing $200,000, which has been purchased from Ren Ltd. A profit of $80,000 before tax has been made on the sale.
|
|
Explain silver chloride will precipitate out of solution
: Silver chloride will precipitate out of solution, leaving an unsaturated solution of AgCl. D) Nothing will happen since NaCl and AgNO3 are both soluble compounds.
|
|
Determine the contribution margins and net profits
: Discuss, with reasons, the appropriateness of the recognition and measurement of entrance fees and membership fees adopted by Excel Leisure Ltd. Your discussion need not include any calculations.
|
|
Prepare the consolidated statement of cash flows
: Prepare the consolidated statement of cash flows of the Huihui Ltd group for the year ended 30 June 2012 in accordance with AASB107, using the direct method. Include a note that reconciles profit with cash flows from operating activities. Show all..
|
|
Describe in detail the final temperature of the mixture
: If you have 260.0 mL of water at 25. C and add 110.0 mL of water at 95.0 C, what is the final temperature of the mixture. Use 1.00 g/mL as the density of water.
|