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ACCT2201 - Tom Limited and Harry Limited - Case Study - Accounting Assignment
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Internal Code: MAS5482
The inventory was all sold by 30/6/14. The remaining useful life of the plant is 7 years. The accounts receivable were collected by 30/6/14 for $19,000 The land was sold on 30/12/16 for $32,000. The plant was on hand still at 30/6/17. At the date of acquisition the equity of Harry Ltd consisted of:
Share Capital 320,000
General Reserve 78,000
Retained Earnings 65,000
Questions:
A. Prepare the acquisition analysis at 1 July 2013.
B. Prepare the BCVR and pre-acquisition journal entries at 1 July 2013.
C. Prepare the BCVR and pre-acquisition journal entries at 30 June 2017.
D. Prepare the consolidation worksheet journal entries to eliminate the effects of inter-entity transactions as at 30 June 2017.
E. Prepare the consolidation worksheet for the preparation of the consolidated financial statements for the period ended 30 June 2017.
F. Prepare the consolidated statement of profit or loss and other comprehensive income, the consolidated balance sheet and the consolidated statement of changes in equity for the period ended 30 June 2017.
Accounting Assignment:
On 1 July 2013 Tom Limited acquired all of the share capital of Harry Limited for a consideration of $500,000 cash. At that date all the identifiable assets and liabilities were recorded at fair value with the exception of:
The inventory was all sold by 30/6/14. The remaining useful life of the plant is 7 years. The accounts receivable were collected by 30/6/14 for $19,000 The land was sold on 30/12/16 for $32,000. The plant was on hand still at 30/6/17. At the date of acquisition the equity of Harry Ltd consisted of:
Share Capital 320,000
General Reserve 78,000
Retained Earnings 65,000
Questions:
A. Prepare the acquisition analysis at 1 July 2013.
B. Prepare the BCVR and pre-acquisition journal entries at 1 July 2013.
C. Prepare the BCVR and pre-acquisition journal entries at 30 June 2017.
D. Prepare the consolidation worksheet journal entries to eliminate the effects of inter-entity transactions as at 30 June 2017.
E. Prepare the consolidation worksheet for the preparation of the consolidated financial statements for the period ended 30 June 2017.
F. Prepare the consolidated statement of profit or loss and other comprehensive income, the consolidated balance sheet and the consolidated statement of changes in equity for the period ended 30 June 2017.