ADVANCED ACCOUNTING >CUSTOM<
14th Edition
ISBN: 9781265537012
Author: Hoyle
Publisher: MCG CUSTOM
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Chapter 2, Problem 21P
To determine
Introduction: Consolidated financial statements are the single set of statements that combines two or more companies to create a single economic entity. A consolidated
The total
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Students have asked these similar questions
1.
Given below are the consolidated statements of financial position and the
consolidated statement of comprehensive income for Pelangi Berhad and its
subsidiary Mentari Berhad:
Consolidated Statement of Financial Position
as at 31 December
2020
2019
RM'000
RM'000
Property, plant and equipment
1,350
1,300
Investment in associates company
1,000
900
Inventory
900
500
Trade receivables
500
700
Bank
300
150
4,050
3,550
Ordinary shares of RM1 each
2,500
2,500
Retained profits
560
260
Non-controlling interest
590
490
Trade payables
400
300
4,050
3,550
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2020
2020
RM'000
Profit
495
Share of profits of associate company (less impairment of
goodwill)
130
Profit before tax
625
Тах
(50)
Profit after tax
575
Profit after tax attributable to:
Equity holders of parent company
425
Non-controlling interest
150
575
Additional information:
i. Tax charge for the year has been paid.
ii. Group depreciation on property, plant and…
9.1
Calculate Left Ltd's share of profits in Right Ltd for the year ended 30 June 2023.
The following information is relevant to questions 9.1 and 9.2.
Left is a parent company that prepares consolidated financial statements. On 1 July 2021 Left
Ltd acquired 40% of the equity in Right Ltd for $220 000. At this date the equity in Right Ltd
consisted of:
Capital
$250 000
Revaluation reserve
$50 000
Retained profits
$150 000
Right Ltd carried its assets fair values with the exception of one item of plant & equipment
whose fair value was $20 000 greater than its carrying amount. The estimated useful life of this
item is 4 years. Summary of movements in the retained earnings of Right Ltd:
2022
2023
Profit after tax
Retained profits at start
Dividends
140 000
200 000
150 000
210 000
(80 000)
210 000
(100 000)
310 000
Retained profits at end
At 30 June 2022 there were unrealised profits before tax of $10 000 arising from inventory
transfers between the two entities.
The financial statements of Company Permanent and its subsidiary Company Senior are shown below.
Statement of Financial Position As at 31 December 2019:
Permanent
Senior
$
$
Investment in Senior
450,000
-
Other net assets
4,653,400
605,550
5,103,400
605,550
Share capital
2,350,000
300,000
Retained earnings
2,753,400
305,550
5,103,400
605,550
Income Statement and Partial Statement of Changes in Equity For the Year Ended 31 December 2019
Permanent
Senior
$
$
Sales
10,000,000
3,300,000
Cost of sales
(9,000,000)
(3,139,450)
Dividend income from Senior
24,000
-
Profit before tax
1,024,000
160,550
Tax
(220,000)
(35,000)
Profit after tax
804,000
125,550
Retained earnings, 1 January 2019
2,050,000
210,000
Dividends declared
(100,600)…
Chapter 2 Solutions
ADVANCED ACCOUNTING >CUSTOM<
Ch. 2 - Prob. 1QCh. 2 - Describe the concept of a synergy. What are some...Ch. 2 - Prob. 3QCh. 2 - What does the term consolidated financial...Ch. 2 - Within the consolidation process, what is the...Ch. 2 - Prob. 6QCh. 2 - Prob. 7QCh. 2 - Prob. 8QCh. 2 - Prob. 9QCh. 2 - Prob. 10Q
Ch. 2 - Prob. 11QCh. 2 - Prob. 12QCh. 2 - Which of the following does not represent a...Ch. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Prob. 5PCh. 2 - Prob. 6PCh. 2 - Prob. 7PCh. 2 - When does gain recognition accompany a business...Ch. 2 - Prob. 9PCh. 2 - Prob. 10PCh. 2 - Prob. 11PCh. 2 - On June 1, Cline Co. paid 800,000 cash for all of...Ch. 2 - On May 1, Donovan Company reported the following...Ch. 2 - Prob. 14PCh. 2 - Prob. 15PCh. 2 - Prob. 16PCh. 2 - Prob. 17PCh. 2 - On its acquisition-date consolidated balance...Ch. 2 - On its acquisition-date consolidated balance...Ch. 2 - Prob. 20PCh. 2 - Prob. 21PCh. 2 - Prob. 22PCh. 2 - The following book and fair values were available...Ch. 2 - Prob. 24PCh. 2 - Prob. 25PCh. 2 - Prob. 26PCh. 2 - Prob. 27PCh. 2 - Prob. 28PCh. 2 - SafeData Corporation has the following account...Ch. 2 - Prob. 34PCh. 2 - Prob. 35PCh. 2 - Prob. 39APBCh. 2 - Prob. 40APB
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- The financial statements of Company Permanent and its subsidiary Company Senior are shown below. Statement of Financial Position As at 31 December 2019: Permanent Senior $ $ Investment in Senior 450,000 - Other net assets 4,653,400 605,550 5,103,400 605,550 Share capital 2,350,000 300,000 Retained earnings 2,753,400 305,550 5,103,400 605,550 Income Statement and Partial Statement of Changes in Equity For the Year Ended 31 December 2019 Permanent Senior $ $ Sales 10,000,000 3,300,000 Cost of sales (9,000,000) (3,139,450) Dividend income from Senior 24,000 - Profit before tax 1,024,000 160,550 Tax (220,000) (35,000) Profit after tax 804,000 125,550 Retained earnings, 1 January 2019 2,050,000 210,000 Dividends declared (100,600)…arrow_forwardThe extract of statement of financial position for the year ended 30 June 2022 for Pears Ltd and Sapodille Ltd are as follows: Extract of statement of financial position for the year ended 30 June 2022 Equity and liabilities Pears Ltd Sapodille LtdEquity $ $ Share capital ($ 1 Each) 487,500 420,000Share premium 300,000 -Retained earnings 262,500 337,500LiabilitiesNon current liabilities 187,500 75,000Current liabilities 150,000 15,000 On 01 July…arrow_forwardThe following financial information relates to Cams Limited. Statement of Financial Position as at 31 December 2020 and 2021 2021 Ordinary share capital Retained earnings Property, plant and equipment Investments Debentures 12.5% Inventory Trade debtors Prepaid expenses Trade creditors Bank overdraft SARS (income tax) Shareholders for dividends R 400 000 000 Profit before interest and tax Depreciation on equipment Dividends received on investments Interest on dividends Income tax 55 230 000 165 000 20 000 124 000 37 000 25 21 000 000 5 000 30 000 Statement of comprehensive income for the year 31 December 2021 REGENT BUSINESS SCHOOL (RBS) ACADEMIC AND ASSESSMENT CALENDAR-JANUARY 2022 Note no. 1 for the year ended 31 December 2020 and 2021 Property, plant and equipment Land and building at cost Equipment at carrying value R 295 000 5000 195 000 2021 (R) 200 000 30.000 230 000 110 000 60 000 R 2020 120 000 28 500 1500 42 500 25 000 7 500 20 000 BACHELOR OF COMMERCE IN HUMAN RESOURCE…arrow_forward
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