| | | | | | | | Parent | Sub | Dr | Cr | Consolidation | | Sale | | 20,000.00 | | | | | COS | | 10,000.00 | | | | | Gross Profit | | 10,000.00 | 10,000.00 | | | | | | | | | | | Inventory | 20,000.00 | | | 10,000.00 | 10,000.00 | | | | | | | | a 2 | Parent sold half of inventory b4 June 03 | | | | | Parent | Sub | Dr | Cr | Consolidation | | Sale | 16,000.00 | 20,000.00 | 20,000.00 |
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|Participant Guide: GPS Core | |Personal Financial Planning for Transition | |Preparation and Readiness | This Page Intentionally Left Blank TAPS GPS Road Map [pic] K – Capstone Service members will attend
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On 1 July 2007, Neptune Ltd acquired all the shares of Venus Ltd on an ex-div basis. Acquisition related expenses were $5 000. On this date, the equity and liabilities of Venus Ltd included the following balances: Share Capital $200 000 General Reserve 25 000 Retained Earnings 45 000 Dividend payable 10 000 Provisions 204 400 At acquisition date, all the identifiable assets and liabilities of Venus Ltd were recorded at amounts equal to fair value except for: Carrying Fair Amount
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Chapter 5 Consolidated Financial Statements Intercompany Asset Transactions http://faculty.uml.edu/ccarter/AASC04.doc Answers to Questions 1. One reason for the significant volume and frequency of intercompany transfers is that many business combinations are specifically organized so that the companies can provide products for each other. This design is intended to benefit the business combination as a whole because of the economies provided by vertical integration. In effect, more
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Unit III - Consolidation Subsequent to Acquisition Date Key Concepts: Recording on the cost basis requires additional calculations of Ps net income and consolidated retained earnings Under the equity method, the Parent’s net income and retained earnings equals consolidated net income and consolidated retained earnings Preparation of consolidated statements – cost and equity methods - Exhibit 5.16, page 205 Impairment testing for intangible assets with definite useful lives: two step process
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INTERESTS IN OTHER ENTITIES Chapter 24 Accounting for group structures 1. The consolidated financial statements provide an aggregation of the financial statements of a group of separate legal entities to provide financial statements drawn up to reflect a perspective of the group as a single economic entity. Therefore, the purpose of providing consolidated financial statements is to show the results and financial position of a group as if it were operating as a single economic entity. In doing this the
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made. Significant influence over Lennon was achieved by this acquisition. Lennon distributed a dividend of $2.50 per share during 2011 and reported net income of $670,000. What was the balance in the Investment in Lennon Co. account found in the financial records of Pacer as of December 31, 2011? A. $2,040,500. B. $2,212,500. C. $2,260,500. D. $2,171,500. E. $2,071,500. 4. On January 1, 2011, Bangle Company purchased 30% of the voting common stock of Sleat Corp. for $1,000,000. Any excess
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Chapter 13 FOREIGN CURRENCY FINANCIAL STATEMENTS Answers to Questions 1 No. Translation of revenue and expense accounts at average exchange rates is an exception because average rates are merely an approximation of the exchange rates in effect at the transaction dates. In addition, paid-in capital accounts are translated at historical rates and dividends are translated at the exchange rates in effect at the time of payment. In contrast to translation, remeasurement into the currency
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Advanced Financial Accounting Unit 3 Solutions Solution to question 1 1. Prepare the equity accounting entries for 20x5 EA1: Recognize share of post-acquisition R/E of A Dr Investment in A 21,000 Cr RE RE of A as at 1 Jan 20x5 RE of A as at date of acquisition Change in RE 30% Share of A's change in RE 21,000 100,000 30,000 70,000 21,000 EA2: Recognize share of impairment loss on intangible asset (note a) Dr RE 4,800 Cr Investment in A 4,800 (30% Asso x 50% impair x (1-20% tax) x 40K)
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