Week 6 Tutorial Ch 29 Template

Week 6 Tutorial Ch 29 Template - WEEK 6 TUTORIAL SOLUTION...

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WEEK 6 TUTORIAL SOLUTION – Template Chapter 29 Further consolidation issues I: Accounting for intra-group transactions 29.3 29.4 (a) (b) 29.6 . 1
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29.7 (a) (b) . 2
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29.10 Bigger Smaller Eliminations and adjustments Consolidated Company Company Dr Cr Statement Statement of comprehensive income and reconciliation of retained earnings Profit before tax 500 500 Tax 125 200 Profit after tax 375 300 Opening retained earnings 4 000 1 500 4 375 1 800 Less: dividends proposed 175 250 Statement of financial position Shareholders’ funds Retained earnings 4 200 1 550 Share capital 1 250 2 500 Liabilities Accounts payable 2 500 500 Dividends payable 175 250 8 125 4 800 Assets Cash 250 350 Accounts receivable 125 650 Dividends receivable 250 Inventory 375 800 Plant and equipment 2 125 3 000 Investment in Smaller Company 5 000 Goodwill Accumulated impairment loss 8 125 4 800 3
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Consolidation adjustments 1. Dr Dr Dr Cr To eliminate investment in Smaller Company. 2.
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Week 6 Tutorial Ch 29 Template - WEEK 6 TUTORIAL SOLUTION...

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