Recent Question/Assignment

It is just 2 questions i need answers for. But i need it by today 27th 12 am or by 28th 6 am
(b) Prepare the pre-acquisition entries for the consolidation worksheet for the Freemantle Ltd Group for the financial year ended at 30 June 2041. (5 marks)
(c) Prepare the business combination valuation reserve (BCVR) entries for the consolidation worksheet for the Freemantle Ltd Group for the financial year ended at 30 June 2042. (7 marks)
(d) Prepare the pre-acquisition entries for the consolidation worksheet for the Freemantle Ltd Group for the financial year ended at 30 June 2042. (4 marks)
Question L
Marked out of 20.00
Question text
Question 2 (20 marks) Intragroup transactions and non-controlling interests
Kalgoorlie Ltd acquired 75% of the shares of Geraldton Ltd on 1 July 2040 for $7,800,000.
Kalgoorlie Ltd uses the partial goodwill method.
The income tax rate is 30%.
All income on sale of assets is taxable and expenses are deductible.
For the following intragroup transactions
• provide the relevant adjusting journal entries for
the consolidation worksheet
• AND any related entries to adjust the non-controlling interest.
PART A (8 marks)
On 15 May 2041, Geraldton Ltd sold inventory costing $68,000 to Kalgoorlie Ltd for $85,000. Kalgoorlie Ltd had sold 60% of the inventory to external entities for $61,000 by 30 June 2041. The remainder of the inventory purchased by Kalgoorlie Ltd was sold in the following financial year for $41,000.
Required:
(a) Prepare adjusting journal entries for the consolidation worksheet at 30 June 2041.
Explanations (narrations) are not required. (5 marks)
(b) Prepare adjusting journal entries for the consolidation worksheet at 30 June 2042.
Explanations (narrations) are not required. (3 marks)
PARTB (5 marks)
Geraldton Ltd paid a dividend of $85,000 on 31 January 2041 and declared a dividend of $170,000 on 30 June 2041.
Required:
Prepare adjusting journal entries for the consolidation worksheet at 30 June 2041.
Explanations (narrations) are not required.
PARTC (7 marks)
On 2 January 2041, Kalgoorlie Ltd sold equipment to Geraldton Ltd for $340,000, recording a profit before tax of $80,000. Geraldton Ltd uses the straight-line depreciation method at 50% for this equipment.
Required:
Prepare adjusting journal entries for the consolidation worksheet at 30 June 2042 (the year after the disposal). Explanations (narrations) are not required.
Question 3
Marked out of 20.00
Question text
Question 3 (20 marks) Non-controlling interest
On 1 July 2040, Carnarvon Ltd acquired 60% of the issued shares of Karratha Ltd for $2,330,000. At this date the equity of Karratha Ltd consisted of:
$
Share capital 800,000
Retained earnings 2,400,000
General reserve 400,000
The non-controlling interest (NCI) in Karratha Ltd was considered to have a fair value of $1,520,000.
All the identifiable assets and liabilities of Kuranda Ltd were recorded at amounts equal to fair value except for:
Original Carrying Fair
Cost Amount value
$ $ $
Inventory 120,000 160,000
Plant 800,000 400,000 560,000
Additional information:
• All inventory was sold by 30 June 2041.
• It was estimated that the Plant had a further life of ten (10) years, and was depreciated on a straight-line basis
• Adjustments for differences between carrying amounts and fair values at acquisition date are made on consolidation
• Carnarvon Ltd uses the full goodwill method
• Karratha Ltd made a profit of $480,000 in the year ended 30 June 2041
• The tax rate is 30%
Required:
(a) Provide a table to show the acquisition analysis of Karratha at 1 July 2040; clearly show any supporting calculations. (4 marks)
(b) Prepare the business combination valuation reserve (BCVR) entries for the consolidation worksheet for the Carnarvon Ltd Group for the financial year ended at 30 June 2041. (7 marks)
(c) Prepare the pre-acquisition entry or entries for the consolidation worksheet for the Carnarvon Ltd Group for the financial year ended at 30 June 2041. (4 marks)
(d) Prepare the NCI worksheet entry or entries for the consolidation worksheet for the Carnarvon Group for the financial year ended at 30 June 2041. (5 marks)
Question 4
Marked out of 20.00
Question text
Question 4 (20 marks) Accounting for a joint venture
On 1 July 2040, Esperance Ltd purchased 50% of the shares of Albany Ltd for $375,000, which is now operated as a joint venture. This shareholding gave Esperance joint control of the operations of Albany Ltd.
At that date, equity of Albany Ltd consisted of:
$
Share capital 336,000
Asset revaluation surplus 48,000
Retained earnings 240,000
At the date of acquisition, all assets and liabilities of Albany Ltd were deemed to be at their fair values, except for Inventory (carrying amount $290,000 and fair value of $330,000) and for Plant (carrying amount $480,000 and fair value of $624,000).
For the year ended 30 June 2041, Albany Ltd recorded an after-tax profit of $302,400 and declared the final dividend of $115,000. An interim dividend of $58,000 was paid on 31 December 2040.
As at 30 June 2041, the Shareholders’ funds section of the Statement of Financial Position of Albany Ltd showed the following:
$
Share capital 336,000
Asset revaluation surplus 72,000q

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