ADVANCED ACCOUNTING-LL
13th Edition
ISBN: 9781260232486
Author: Hoyle
Publisher: MCGRAW-HILL CUSTOM PUBLISHING
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Question
Chapter 7, Problem 19P
a.
To determine
Find the amounts which appear for each line in a consolidated income statement.
b.
To determine
Find the income tax expense which should appear on the consolidated income statement if each company files a separate return.
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The following are the statements of comprehensive income and financial positions of Green Limited:
Green Limited
Statement of Comprehensive Income for the Year Ended 31st December 2018
GH₵
GH₵
Sales
86,000
Less: Cost of goods sold
Opening stock
16,500
Purchases
48,000
64,500
Less closing stock
(24,000)
(40,500)
Gross profit
45,500
Less operating expenses
Administrative expenses
(9,000)
Depreciation
(4,000)
Selling & distribution expenses
(10,000)
(23,000)
Profit before interest and tax
22,500
Interest
(5,000)
Profit before tax
17,500
Corporate tax
6,000
Profit after interest & tax
11,500
Green Limited
Statement of Financial Position as at 31st December 2018
31/1/2018
31/12/017
Non-current assets
Plant & machinery
20,000
15,000
Motor…
Comparative income statements of Samba Corporation for the calendar years 2017, 2018, and 2019 are as follows (in thousands):
2017
2018
2019
Sales
$14,000
$16,250
$16,850
Cost of Sales
8,100
8,900
9,100
Gross Profit
5,900
7,150
7,750
Operating Expenses
4,700
5,500
6,000
Net Income
1,200
1,650
1,750
ADDITIONAL INFORMATION
1. Samba was a 75 percent-owned subsidiary of Pamba Corporation throughout the 2017– 2019 period. Pamba’s separate income (excludes income from Samba) was $6,400,000, $5,600,000, and $7,000,000 in 2017, 2018, and 2019, respectively. Pamba acquired its interest in Samba at its underlying book value, which was equal to fair value on July 1, 2016.
2. Pamba sold inventory items to Samba during 2017 at a gross profit to Pamba of $650,000. Half the merchandise remained in Samba’s inventory at December 31, 2017. Total sales by Pamba to Samba in 2017 were $1,600,000. The remaining merchandise was sold by Samba in 2018.
3. Pamba’s inventory at December…
The following is the statement of comprehensive income of Green Limited:
Green Limited
Statement of Comprehensive Income for the Year Ended 31st December 2018
GH₵
GH₵
Sales
86,000
Less: Cost of goods sold
Opening stock
16,500
Purchases
48,000
64,500
Less closing stock
(24,000)
(40,500)
Gross profit
45,500
Less operating expenses
Administrative expenses
(9,000)
Depreciation
(4,000)
Selling & distribution expenses
(10,000)
(23,000)
Profit before interest and tax
22,500
Interest
(5,000)
Profit before tax
17,500
Corporate tax
6,000
Profit after interest & tax
11,500
Green Limited
Statement of Financial Position as at 31st December 2018
31/1/2018
31/12/017
Non-current assets
Plant & machinery
20,000
15,000
Motor vehicles
8,000…
Chapter 7 Solutions
ADVANCED ACCOUNTING-LL
Ch. 7 - Prob. 1QCh. 7 - Prob. 2QCh. 7 - Prob. 3QCh. 7 - How does the presence of an indirect ownership...Ch. 7 - Prob. 5QCh. 7 - In accounting for mutual ownerships, what is the...Ch. 7 - Prob. 7QCh. 7 - Prob. 8QCh. 7 - Prob. 9QCh. 7 - Prob. 10Q
Ch. 7 - Prob. 11QCh. 7 - Jones acquires Wilson, in part because the new...Ch. 7 - Prob. 13QCh. 7 - Prob. 1PCh. 7 - Prob. 2PCh. 7 - Prob. 3PCh. 7 - Which of the following is correct for two...Ch. 7 - Prob. 5PCh. 7 - Prob. 6PCh. 7 - Prob. 7PCh. 7 - Prob. 8PCh. 7 - Prob. 9PCh. 7 - Prob. 10PCh. 7 - Prob. 11PCh. 7 - Prob. 12PCh. 7 - Prob. 13PCh. 7 - Prob. 14PCh. 7 - On January 1, 2016, Uncle Company purchased 80...Ch. 7 - Prob. 16PCh. 7 - Prob. 17PCh. 7 - Prob. 18PCh. 7 - Prob. 19PCh. 7 - Clarke has a controlling interest in Rogerss...Ch. 7 - Prob. 21PCh. 7 - Prob. 22PCh. 7 - Prob. 23PCh. 7 - Prob. 24PCh. 7 - Prob. 25PCh. 7 - Prob. 26PCh. 7 - Prob. 27PCh. 7 - Prob. 28PCh. 7 - Prob. 29PCh. 7 - Prob. 1DYSCh. 7 - Prob. 2DYS
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