Prepare the consolidated balance sheet, Cost Accounting

Assignment Help:

H Bhd has a 75% holding in the ordinary shares of S Sdn Bhd and 40% in A Sdn Bhd. Shares in S were acquired  in 2006 when its retained earnings were RM120 million.  The shares in A S/B  were acquired in 2004 when its retained earnings were RM50 million. Below are the balance sheets for the three companies as at 31 December 2009.

1958_Prepare the consolidated balance sheet.png

Additional information:

i)  To reflect the fair value of the subsidiaries' net assets at the acquisition date, the directors of H determined that S's freehold land had a fair value of RM450 million. S has not acquired nor disposed off any land since 2006.

ii)  Investment in S Bhd includes 10% Debentures purchased at par for RM 24 million.

iii)  S Bhd sold a piece of equipment to H Bhd in 2009 for RM20 million and made a profit of RM5 million. The remaining useful life of this plant and equipment at that time was 5 years.

iv)  During the year, A S/B  sold items of  inventories at the invoiced value of RM20 million to H Bhd. RM12.5 million of these goods are still in stock at the end of the year. Side normally charges a mark-up of 25% on cost.

v)  Full provision of depreciation  is provided for in the year of purchase and none in the year of sale.

vi)  Assume that revenue and expenditure accrue evenly throughout the year.

vii)  Ignore taxation.  

Required:

a)  Prepare the consolidated balance sheet as at 31 December 2009.  Show all relevant workings.


Related Discussions:- Prepare the consolidated balance sheet

Last in first out or lifo, Last in first out or LIFO LIFO is based upo...

Last in first out or LIFO LIFO is based upon the assumption such the stock purchased last is issued first. Stock valuation should here be based upon the prices ruling on acqui

Prepare a forecast of cashflow, A company is to produce an IC and a chip si...

A company is to produce an IC and a chip size of 120mm2 has been estimated, based on using a full-custom nMOS technology on 8" wafers. The process has a 92% yield at the wafer fab

What is the total cost of the work in process, The Cutting Department of th...

The Cutting Department of the Rock Island Custom Cabinetry Corporation (a process costing production) had no work in process at the beginning of the period, 12,000 units were compl

Monetary performance and the financial position, The question required cons...

The question required consideration of both the monetary performance and the financial position, from the perception of a potential lender. As with previous questions, candidates w

Computerized packages, types of computerized packages .its cost .features s...

types of computerized packages .its cost .features size of the business is intended to service

Calculate earnings, The Smiths have two children who live with them: Sandy ...

The Smiths have two children who live with them: Sandy and Judy. Both are full-time students. Sandy is an accomplished singer and made $4,200 during the year performing at special

What is the contribution margin ratio, Sales: $168,042 Variable Costs: $63,...

Sales: $168,042 Variable Costs: $63,987 Total fixed expenses:$ 75,794 Number units sold per year: 6367 1. What is the contribution margin per unit of your product or service? 2.

Compute the net cash used, Martinez Corporation engaged in the following ca...

Martinez Corporation engaged in the following cash transactions during 2012. Sale of land and building $186,710 Purchase of treasury stock 42,130 Purchase of land 39,130

Manufacturing Costs, Is there a way to figure out labor cost and factory i...

Is there a way to figure out labor cost and factory inventory when no direct information regarding them is available.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd