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Corporate Accounting and Reporting - doc

   

Added on  2020-05-28

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Running Head: Corporate Accounting and ReportingCorporate Accounting andReporting
Corporate Accounting and Reporting - doc_1

Corporate Accounting and Reporting2QUESTION 1Sam Ltd equityAmountShare capital150000Reserves10000retained earnings30000Dividend6000Goodwill5000Purchase consideration130000CarryingamountFairvaluePlant(Cost)9400096000Land8000095000Inventory2000026000At 1 July 2013Net fair value of Identifiable assets and liabilities off Sam Ltd=($15000+$10000+$30000) (equity)+$2000*(1-30%)(plant)+$15000*(1-30%)(land)+$6000*(1-30%)(inventory)+$6000*(1-30%)(data base)-$9000(1-30%)(damages payable)-$5000(Goodwill)Net Fair Value=199000Consideration Paid=$130000-$6000(Dividend receivable)=124000Capital reserve=75000Recorded goodwill=5000Transfer to capital Reserve=70000
Corporate Accounting and Reporting - doc_2

Corporate Accounting and Reporting3A. Worksheet entries as at 30 June 20171.Business Combination valuation entriesDrCrAccumulated depreciationDr 26000PlantCr 24000Deferred Tax liabilityCr 600Business combination valuation ReserveCr1400Depreciation ExpenseDr 200Retained Earnings (01/07/16)Dr 600Accumulated DepreciationCr 800(1/10 x $2000p.a for 4 years)Deferred Tax LiabilityDr 240Income Tax ExpenseCr 60Retained EarningsCr 180Amortisation Expense- DatabaseDr 1500Retained earnings (01/07/16)Dr 3150Income Tax ExpenseCr 450Transfer from Business Cr 4200Combination Valuation ReserveTransfer from Business combination Valuation ReserveDr 7000Income Tax expenseDr 3000Damage ExpenseCr 7500GainCr 2500Actual impairment losses- GoodwillDr 7000Business Combination Valuation ReserveDr 2400GoodwillCr 94002. Pre-Acquisition Entries At 01/07/2013Retained Earnings (01/07/2013)Dr 30000Share CapitalDr 150000ReserveDr 10000Business Combination Valuation ReserveCr 66000Shares in Sam ltd124000Dividend payableDr 6000Dividend receivableCr 6000
Corporate Accounting and Reporting - doc_3

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