Homework answers / question archive / Assignment PART A I) Future value of Identifiable net assets Share capital Retained earnings Cost of acquisition Goodwill $235,000 $115,000 $350,000 $650,000 $300,000 Date 01-July2018 a) a) b) c) d) a) a) b) Particular 1

Assignment PART A I) Future value of Identifiable net assets Share capital Retained earnings Cost of acquisition Goodwill $235,000 $115,000 $350,000 $650,000 $300,000 Date 01-July2018 a) a) b) c) d) a) a) b) Particular 1

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Assignment PART A I) Future value of Identifiable net assets Share capital Retained earnings Cost of acquisition Goodwill $235,000 $115,000 $350,000 $650,000 $300,000 Date 01-July2018 a) a) b) c) d) a) a) b) Particular 1. Pre-acquisition entries Debit Credit Share capital Dr $235,000 Retained Earnings opening Dr $115,000 Goodwill Dr $300,000 Investment in Queensland Retail Ltd $650,000 (being elimination of pre-acquisition of Queensland Retail Ltd. Recorded) 2. Sales of Machinery Gain on Sales of Machinery Dr Machinery Dr Accumulated Depreciation (being reversal of gain on machinery to Queensland and reinstating depreciation) Deferred Tax Asset Retained Earnings opening (being deferred tax assets recorded) Dr $36,000 $64,000 $100,000 $10,800 $10,800 Accumulated Depreciation Dr Retained Earnings opening Depreciation expense (being adjustment on depreciation to reflect the actual amount) $11,667 Income Tax expense Dr Retained Earnings opening Dr Deferred Tax Assets (being partial reversal of DTA to find actual depreciation amount) $2,250 $1,250 3. Impairment on Goodwill Impairment Loss Dr Accumulated Depreciation (being impairment on goodwill recorded) 4. Sale and profit in Closing Inventory Sales Dr Cost of Goods Sold (COGS) Cost of Goods Sold (COGS) Dr Inventory $4,167 $7,500 $3,500 $10,000 $10,000 $50,000 $50,000 $4,000 $4,000 (being unrealized profit adjusted in closing inventory of Queensland Ltd.) c) Income Tax expense Retained Earnings (opening) (being deferred tax assets recorded) II) Future value of Identifiable net assets Share capital Retained earnings Revaluation surplus Cost of acquisition Non-controlling interests $550,000 $100,000 $150,000 $800,000 $800,000 $160,000 Goodwill $160,000 Date 01-July2019 01-July2019 a) $1,200 $1,200 Particular 1.Business Combination Valuation Entries: Debit Accumulated Depreciation Dr Plant Deferred Tax Liability Revaluation surplus (being plant revalued at the time of acquisition) $85,000 Credit $59,000 $7,800 $18,200 2. Pre-acquisition entries Share capital Dr Retained Earnings opening Dr Revaluation Surplus Dr Goodwill Dr Non-controlling interests Investment in House Construction Ltd (being elimination of pre-acquisition of House Construction Ltd. Recorded) $550,000 $100,000 $150,000 $160,000 $160,000 $800,000 a) b) c) d) a) a) b) c) a) 3. Sales of Machinery Retained Earnings opening Dr Machinery Dr Accumulated Depreciation (being reversal of gain on machinery to Queensland and reinstating depreciation) $36,000 $64,000 $100,000 Deferred Tax Asset Retained Earnings opening (being deferred tax assets recorded) $10,800 Accumulated Depreciation Dr Depreciation expense Retained Earnings opening (being adjustment on depreciation to reflect the actual amount) $20,667 Income Tax expense Dr Retained earnings opening Dr Deferred Tax Assets (being partial reversal of DTA to find actual depreciation amount) $2,700 $3,500 $10,800 4. Impairment on Goodwill Impairment Loss Dr Retained Earnings opening Dr Accumulated Depreciation (being impairment on goodwill recorded) 5. Sale and profit in Closing Inventory Sales Dr Cost of Goods Sold (COGS) Cost of Goods Sold (COGS) Dr Inventory (being unrealized profit adjusted in closing inventory of Queensland Ltd.) Income Tax expense Retained Earnings (opening) (being deferred tax assets recorded) 6. Management Fees Management Fees Revenue $9,000 $11,667 $6,200 $15,000 $10,000 $25,000 $70,000 $70,000 $4,500 $4,500 $1,350 $1,350 Dr $3,000 Management Fees Expenses (being intra group management fees revenue and expenses adjusted) b) a) b) c) a) b) c) Management Fees Payable Dr Management Fees Receivable (being unpaid intra group management fees revenue and expense adjusted) 7. Long-term loan and interest expense Loan payable Loan Receivable (being intra-group long-term loan adjusted) $3,000 $2,000 $2,000 Dr $55,000 $55,000 Interest Revenue Dr Interest Expense (being interest revenue and expense on intragroup long term loan adjusted) $1,000 Interest Payable Dr Interest Receivable (being unpaid interest on intra-group long term loan adjusted) $925 8. Dividend Declaration and Paid Dividend Payable Dividend Declared (being dividend declared by Queensland) $1,000 $925 Dr $50,000 $50,000 Dividend Revenue Dr Dividend Receivable (being dividend revenue by Wholesale been adjusted) $50,000 Dividend Income Dr Dividend paid (being intragroup dividend paid to Wholesale adjusted) $50,000 $50,000 $50,000 ‘Harvard' link). PART A 1) Future value of Identifiable net assets Share capital Retained earnings $235,000 $115,000 $350,000 $650,000 $300,000 Cost of acquisition Goodwill Date Particular De