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Company Accounting: Acquisition Analysis, Consolidation Worksheet and Statement

   

Added on  2022-10-02

11 Pages1178 Words437 Views
Running head: COMPANY ACCOUNTING
Company Accounting:
Name of the Student:
Name of the University:
Author’s Note:

1COMPANY ACCOUNTING
Table of Contents
Acquisition Analysis: ................................................................................................................. 2
BCVR and Pre-acquisition entry as at 1July 2013: ................................................................... 2
BCVR and Pre-acquisition entries as at 30 June 2017: ............................................................. 3
Consolidation worksheet journal entries as at 30 June 2017: .................................................... 4
Consolidation worksheet: .......................................................................................................... 6
Consolidated Statement: ............................................................................................................ 8
Bibliography: ........................................................................................................................... 10

2COMPANY ACCOUNTING
Acquisition Analysis:
Acquisition analysis at 1 July 2013:
Share capital $ 3,80,000
General Reserve $ 70,000
Retained Earnings $ 62,000
Inventory 4000*(1-30%) $ 2,800
Land 5000*(1-30%) $ 3,500
Plant 5000*(1-30%) $ 3,500
Accounts receivable -2000*(1-30%) $ -1,400
Net fair value of identifiable assets $ 5,20,400
Cash paid $ 5,00,000
Brand name transferred $ 34,000
Dividend receivable $ -10,000
Purchase consideration transferred $ 5,24,000
Goodwill (524000-520400) $ 3,600
BCVR and Pre-acquisition entry as at 1July 2013:
Share capital $ 3,80,000
General Reserve $ 70,000
Retained earnings (01/07/2013) $ 62,000
Business combination valuation reserve $ 12,000
Shares in Duck Ltd $ 5,24,000
(Pre acquisition entry for investment in shares of Duck Ltd)
Dividend payable $ 10,000
Dividend receivable $ 10,000
(Pre acquisition entry for cumulative dividend)
Inventory $ 4,000
Deferred tax liability $ 1,200
Business combination valuation reserve $ 2,800
(BCVR entry for fair value of inventory)
Land $ 5,000
Deferred tax liability $ 1,500
Business combination valuation reserve $ 3,500

3COMPANY ACCOUNTING
(BCVR entry for fair value of land)
Accumulated depreciation $ 3,000
Plant $ 3,000
(BCVR entry for fair value of plant)
Plant $ 5,000
Deferred tax liability $ 1,500
Business combination valuation reserve $ 3,500
(BCVR entry for fair value of plant)
Business combination valuation reserve $ 1,400
Deferred tax assets $ 600
Accounts receivable $ 2,000
(BCVR entry for accounts receivable)
Business combination valuation reserve $ 3,600
Goodwill $ 3,600
(BCVR entry to record goodwill)
BCVR and Pre-acquisition entries as at 30 June 2017:
Share capital $ 3,80,000
General Reserve $ 70,000
Retained earnings (01/07/2013) $ 62,000
Business combination valuation reserve $ 12,000
Shares in Duck Ltd $ 5,24,000
(Pre acquisition entry for investment in shares of Duck Ltd)
Dividend payable $ 10,000
Dividend receivable $ 10,000
(Pre acquisition entry for cumulative dividend)
Accumulated depreciation $ 3,000
Plant $ 2,000
Deferred tax liability 5000*30% $ 1,500
Business combination valuation reserve $ 3,500
(BCVR entry for plant)
Gain on sale of land $ 2,000

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