Corporate Accounting and Reporting

Running Head: CORPORATE ACCOUNTING AND REPORTING
CORPORATE ACCOUNTING AND REPORTING

Running Head: CORPORATE ACCOUNTING AND REPORTING
Table of Contents
Acquisition Analysis..................................................................................................................3
Business combination valuation entries.....................................................................................3
Pre-Acquisition Entry.................................................................................................................4
Journal entry of recognize NCI..................................................................................................5
Worksheet entries.......................................................................................................................5
Explanation of Goodwill............................................................................................................6
References..................................................................................................................................7

Running Head: CORPORATE ACCOUNTING AND REPORTING
Acquisition Analysis
At 1st June 2019
Net fair value of the identifiable
assets and liabilities of Davis Limited
Equity $ 7,41,000.00
Retained earnings $ 2,54,000.00
Asset Revaluation Surplus $ 3,18,000.00
$ 13,13,000.00
Inventories $ 1,77,800.00
Land $ 3,55,600.00
Equipment $ 4,15,100.00
Net identifiable assets $ 22,61,500.00
Consideration Transferred $ 21,18,000.00
$ 2,03,535.00
Goodwill $ 60,035.00
Business combination valuation entries
Date Particulars Debit Credit
30th June
2020 Accumulated depreciation
D
r.
$
1,48,000.0
0
Gain on Equipment
$
4,45,000.0
0
To deferred tax liability
$
44,400.00
To business combination valuation reserve
$
5,48,600.0
0
(for depreciation charged and adjusted
against BCVR)
30th June
2020 Depreciation Expense
D
r.
$
1,48,250.0
0
To accumulated Depreciation
$
1,48,250.0
0
(for depreciation transferred to