acquired 75% of Ben and 30% of Weed when Ben's reserves were £16,000, and those of Weed were £4,000. Fair value of Ben's net assets at the time of acquisition amounted to £35,000. All company accounts are shown below. Balance Sheets at 31-Dec-20 Non-current assets Investment in Ben Investment in Weed Other Net Assets Х 26,000 Ben 9,000 Weed 6,000 30,000 12,000 10,000 37,000 21,000 78,000 46,000 27,000 Issued Share Capital 40,000 16,000 10,000 Retained Earnings 30,000 26,000 14,000 Profit/Loss 8,000 4,000 3,000 78,000 46,000 27,000 Required: For Ye-Dec-20 prepare 1) Group Balance Sheet 2) Group Income Statement 3) Reconcile group and company net assets

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
icon
Related questions
Question
acquired 75% of Ben and 30% of Weed when Ben's reserves were £16,000, and
those of Weed were £4,000. Fair value of Ben's net assets at the time of acquisition
amounted to £35,000. All company accounts are shown below.
Balance Sheets at 31-Dec-20
Non-current assets
Investment in Ben
Investment in Weed
Other Net Assets
Х
26,000
Ben
9,000
Weed
6,000
30,000
12,000
10,000
37,000
21,000
78,000
46,000
27,000
Issued Share Capital
40,000
16,000
10,000
Retained Earnings
30,000
26,000
14,000
Profit/Loss
8,000
4,000
3,000
78,000
46,000
27,000
Required:
For Ye-Dec-20 prepare
1) Group Balance Sheet
2) Group Income Statement
3) Reconcile group and company net assets
Transcribed Image Text:acquired 75% of Ben and 30% of Weed when Ben's reserves were £16,000, and those of Weed were £4,000. Fair value of Ben's net assets at the time of acquisition amounted to £35,000. All company accounts are shown below. Balance Sheets at 31-Dec-20 Non-current assets Investment in Ben Investment in Weed Other Net Assets Х 26,000 Ben 9,000 Weed 6,000 30,000 12,000 10,000 37,000 21,000 78,000 46,000 27,000 Issued Share Capital 40,000 16,000 10,000 Retained Earnings 30,000 26,000 14,000 Profit/Loss 8,000 4,000 3,000 78,000 46,000 27,000 Required: For Ye-Dec-20 prepare 1) Group Balance Sheet 2) Group Income Statement 3) Reconcile group and company net assets
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education