Reference no: EM131609429
Consolidation worksheet entries
On 1 July 2015, Zack Ltd acquired all the issued shares (ex div.) of William Ltd for $227 500. At this date the equity of William Ltd consisted of:
Share capital $ 150 000 General reserve 34 000 Retained earnings 20 000
At acquisition date, William Ltd reported a dividend payable of $8000. All the identifiable assets and liabilities of William Ltd were recorded at amounts equal to their fair values except for:
Carrying amount Fair value Plant (cost $200 000) $175 000 $190 000 Land 150 000 155 000 Inventory 32 000 40 000
The plant was considered to have a further 3-year life. Of the inventory, 90% was sold by 30 June 2016 and the remainder was sold by 30 June 2017. The land was sold in January 2016 for $170 000. William Ltd had recorded goodwill of $2000 (net of accumulated impairment losses of $12 000). William Ltd was involved in a court case that could potentially result in the company paying damages to customers. Zack Ltd calculated the fair value of this liability to be $8000, even though William Ltd had not recorded any liability.
The following events occurred in the year ending 30 June 2016.
- On 12 August 2015 William Ltd paid the dividend that existed at 1 July 2015.
- On 1 December 2015 William Ltd transferred $17 000 from the general reserve existing at 1 July 2015 to retained earnings.
- On 1 January 2016 William Ltd made a call of 10c per share on its issued shares. William Ltd had 100 000 shares on issue. All call money was received by 31 January 2016.
- On 29 June 2016 William Ltd reassessed the liability in relation to the court case as the chances of winning the case had improved. The fair value was now considered to be $2000.
Required -
1. Calculate the acquisition analysis.
2. Prepare the consolidation worksheet entries for the preparation by Zack Ltd of its consolidated financial statements at 30 June 2016.
|
Discuss the investigation and prosecution of crime
: With the advent of various technological advancements, law enforcement efforts in the investigation and prosecution of crime have been met with positive results
|
|
Post an update of progress on your dissertation proposal
: How will you work with your chair to help complete this revised draft? What do you need to do to complete this draft?
|
|
Discuss consultant in city x
: You are hired as a consultant in City X and are charged with the responsibility of creating a plan to deal with the multiple daytime robbery attacks in your are
|
|
Identify potential quality concerns in the traditional areas
: Identify potential quality concerns in the traditional areas of machinery, employees, measurements, and materials.
|
|
Calculate the acquisition analysis
: On 1 July 2015, Zack Ltd acquired all the issued shares (ex div.) of William Ltd for $227 500. Calculate the acquisition analysis
|
|
Discuss the trend in cjs
: Discuss the trend in CJS, particularly police agencies, to hire independent auditors to investigate
|
|
Currency exchange risk
: From the e-Activity, based on your research of the current EURO currency crisis, predict the future of the currency
|
|
Describe the three types of substance abuse assessments
: Describe the three selected types of substance abuse assessments that you might use. Be sure that your choices represent three different age populations.
|
|
Leveraged and unleveraged capital structures
: What are the impacts of the following on BECA Corporation's value, given the following information? SHOW ALL CALCULATIONS, and make a summary.
|