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Corporate Accounting: Consolidation, Liquidation, Acquisition Analysis and Investment Decisions

   

Added on  2023-06-05

9 Pages1859 Words147 Views
Unit Code: ACT305
Unit Name: Corporate Accounting
Name of the Student
Name of the University

Table of Contents
Answer to question 1:.................................................................................................................3
Part [a] Journal entries related to investment in Fry ltd.........................................................3
Part [b] Consolidation worksheet entries...............................................................................3
Answer to question 2:.................................................................................................................4
Answer to question 3:.................................................................................................................5
Answer to question 4:.................................................................................................................7
Introduction............................................................................................................................7
Discussion..............................................................................................................................7
Conclusion..............................................................................................................................8
Reference:..................................................................................................................................9

Answer to question 1:
Part [a] Journal entries related to investment in Fry ltd.
Small Ltd.
Journal Entries
Date Account Debit Credit
01-07-2017 Investment in Fry Ltd. A/c. $ 50,000.00
Cash at Bank A/c. $ 50,000.00
30-06-2018
Investment in Fry Ltd. A/c. $ 15,000.00
Equity in Earnings of Fry Ltd. A/c. $ 15,000.00
Cash A/c. $ 24,000.00
Investment in Fry Ltd. A/c. $ 24,000.00
30-06-2019
Investment in Fry Ltd. A/c. $ 13,500.00
Equity in Earnings of Fry Ltd. A/c. $ 13,500.00
Cash A/c. $ 4,500.00
Investment in Fry Ltd. A/c. $ 4,500.00
30-06-2020
Investment in Fry Ltd. A/c. $ 12,000.00
Equity in Earnings of Fry Ltd. A/c. $ 12,000.00
Cash A/c. $ 3,000.00
Investment in Fry Ltd. A/c. $ 3,000.00
Part [b] Consolidation worksheet entries
Small Ltd.
Journal Entries
Date Particulars Debit Credit
01-07-2017 Investment in Fry Ltd. A/c. $ 50,000.00
$ 50,000.00
30-06-2018 Share Capital A/c. $ 9,000.00
Retained Earnings A/c. $ 36,000.00
Goodwill A/c. $ 5,000.00
$ 50,000.00
Share Capital A/c. $ 21,000.00
Retained Earnings A/c. $ 84,000.00
$ 1,05,000.00
Equity in Earnings of Fry Ltd. A/c. $ 35,000.00

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