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Corporate Accounting: Acquisition Analysis, Adjusted Journal Entries, Consolidated Statements

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Added on  2023-03-23

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This document provides an analysis of corporate accounting, focusing on acquisition analysis, adjusted journal entries, and consolidated statements. It explains the impact of revaluation, goodwill, and non-controlling interest. The document also explores the valuation of assets and liabilities and provides insights into the consolidated financial statements of Ethan Ltd and Darren Ltd.

Corporate Accounting: Acquisition Analysis, Adjusted Journal Entries, Consolidated Statements

   Added on 2023-03-23

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CORPORATE ACCOUNTING
Corporate Accounting: Acquisition Analysis, Adjusted Journal Entries, Consolidated Statements_1
Accounting
1. Acquisition analysis
Computation of Assets taken over by Ethan 1.7.17 30.6.18
Share Capital of the company 54,000.00 54,000.00
Retained Earnings 36,000.00 44,300.00
Reserve - Asset Revaluation 18,000.00 20,000.00
Inventory revaluation 1,400.00 140.00
Machinery revaluation 1,050.00 840.00
Total 1,10,450.00 1,19,280.00
Post Acquisition Profit
8,830.
00
Consideration paid 1,10,000.00 1,10,000.00
*Acquisition goodwill – (450)
2. Adjusted journal entries
Journal entry
Cost of Sales Ac Dr 300
To, machinery AC 300
Combination Entries of Business
Share Capital 54000
Retained Earnings 36000
Asset Revaluation Reserve 18000
Revaluation Reserve 2450
To shares of Darren Ltd 1,10,000.00
To Gain on Business Purchase 450
2
Corporate Accounting: Acquisition Analysis, Adjusted Journal Entries, Consolidated Statements_2
Accounting
3. Consolidated statements
Income Statement
for the year ended 30th June 2018
Ethan Ltd Darren ltd
Profit before tax 1,20,000.00 12,500.00
Tax Expense -56,000.00 -4,200.00
Profit 64,000.00 8,300.00
Retained Earning 80,000.00 36,000.00
Transferred to General reserve - -3,000.00
Closing Retained Earning 1,44,000.00 41,300.00
Adjustments
Subsidiary Share 8,830.00 (119280-110450)
Total 1,52,830.00
Consolidated Financial Statements of Ethan Ltd
As at 30.6.18
Ethan Ltd Darren ltd Consolidated
Share Capital 3,60,000.00 54,000.00 3,60,000.00
Retained Earning 1,44,000.00 41,300.00 2,450.00
General Reserve 10,000.00 3,000.00 10,000.00
Asset Revaluation Surplus 18,500.00 20,000.00 18,500.00
Liabilities 42,500.00 13,000.00 55,500.00
Total 5,75,000.00 1,31,300.00 4,46,450.00
Goodwill(Business Combination Valuation
Reserve) -
Land 1,60,000.00 20,000.00 1,80,000.00
Plant and Machinery 3,60,000.00 1,25,600.00 5,26,900.00
Depreciation
-
1,10,000.00
-
33,000.00
-
1,43,000.00
3
Corporate Accounting: Acquisition Analysis, Adjusted Journal Entries, Consolidated Statements_3

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