View the step-by-step solution to:

Gotham Ltd purchased 100% of the issued shares in City Ltd on 1 July 2013 for $70 000. City Ltd's assets were all recorded at fair value, except for...

question.png

A question about intra-group transactions. Especially the journal one two and three. I have no idea that how to write these.

question.png

6-5 . Gotham Ltd purchased 100% of the issued shares in City Ltd on 1 July 2013 for $70 000. City Ltd’s assets were all recorded at fair value, except for land which was undervalued by $12,000. On acquisition shareholders’ fimds of City Ltd were as follows: Contributed capital $50 000
Retained earnings/(loss) $12 0001
48 000 . Directors determined that $1,000 be recognised annually (at the end of each financial year) for goodwill impairment loss. During the financial year ending 30 June 2017: 4. 6. 7. Intra-group sales were $60 000, of which the following amounts of unrealised profit were in inventory:
at the beginning of the year $9,000; at the end of the year $45,000. On 1 July 2013 City Ltd sold an item of plant to Gotham Ltd making a profit on sale of $1,000. On sale,
the plant had accumulated depreciation of $25,000 and a remaining life of 4 years. Gotham Ltd charged City Ltd a management fee of $8,000, which was paid. Gotham Ltd declared and paid dividends of $2? 000. City Ltd declared and paid dividends of $7 000. Required:
Prepare all consolidationfelimination journal entries for the year ending 30 June 2017 assuming a tax rate of 30%.

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question