Homework answers / question archive / On 1 July 2018, Kiwi Ltd purchased 40% of the shares of Fruit Ltd at a cost of $240,000

On 1 July 2018, Kiwi Ltd purchased 40% of the shares of Fruit Ltd at a cost of $240,000

Accounting

Share With

On 1 July 2018, Kiwi Ltd purchased 40% of the shares of Fruit Ltd at a cost of $240,000. Kiwi Ltd does not control Fruit Ltd but does have significant influence. The carrying amounts of Fruit Ltd’s net assets (at fair value) at date of acquisition were as follows:

The following information relates to Fruit Ltd for 30/6/19 and 30/6/20:

Required

Prepare the journal entries required by Kiwi Ltd relating to its Investment in Fruit Ltd and subsequent transactions for the period from 1 July 2018 to 30 June 2020. Kiwi Ltd is not a parent entity.