Corporate Accounting Acc204

Running head: CORPORATE ACCOUNTING ACC204
Corporate Accounting Acc204
Name of the Student:
Name of the University:
Authors Note:

CORPORATE ACCOUNTING ACC204
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Table of Contents
1. Preparing the acquisition analysis at acquisition date:...........................................................2
2. Preparing the business combination valuation entries and pre-acquisition at acquisition
date:............................................................................................................................................2
3. Preparing the journal entry to recognize NCI at acquisition date:.........................................3
4. Preparing the consolidation worksheet entries at 30 June 2020:...........................................3
5. Explaining how step 1 to 4 will change if the full goodwill method is used:........................4
References and Bibliography:....................................................................................................6

CORPORATE ACCOUNTING ACC204
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1. Preparing the acquisition analysis at acquisition date:
Particulars Value (CI)
Share capital 303,600
Asset revaluation surplus 130,640
Retained earnings 103,960
Gross assets 538,200
Inventories 73,416
Land 145,544
Furniture 170,016
Net value of assets 388,976
Total fair value of the
assets 927,176
Consideration paid 944,000
Goodwill on acquisition 16,824
2. Preparing the business combination valuation entries and pre-acquisition at
acquisition date:
Business combination valuation entries
Particulars Amount Amount
Land................................Dr 207,920
Deferred tax liability 62,376
BCVR 145,544
Inventories.....................Dr 104,880
Deferred tax liability 31,464
BCVR 73,416
Accumulated Depreciation........Dr 45,480
Furniture 197,400
Deferred tax liability 72,864
BCVR 170,016
Goodwill......................Dr 16,824