Entries of Acquisition Analysis and Business Combination Valuation Entries

Running head: FINANCE 1
FINANCE

Running head: FINANCE
Table of Contents
Entries of Acquisition analysis............................................................................................ 3
Business combination valuation entries..................................................................................3
Journal entry to recognize NCI............................................................................................ 4
Consolidation worksheet entries........................................................................................... 4
Difference from partial goodwill method to full goodwill method.................................................5
References..................................................................................................................... 6

Running head: FINANCE
Entries of Acquisition analysis
Pre-Acquisition
Entries
1st July
2019
General Reserve
(1/7/19)
Dr
.
$
391,017.90
Share Capital
Dr
.
$
292,110.00
Asset Revaluation surplus
Dr
.
$
97,370.00
Capital reserve
Dr
.
$
132,545.10
To gain on bargain purchase
$
23,043.00
To shares in Davis Limited
$
890,000.00
(for consideration given to Davis
limited)
30th June
2020 Transfer from valuation Reserve
Dr
.
$
295,690.00
To retained earnings
$
295,690.00
for transferred from BCVR to BCVR
General Reserve
$
132,545.10
To capital reserve
$
132,545.10
for amount transferred to capital
reserve
Business combination valuation entries
Date Particulars Debit Credit
30th June
2020 Accumulated depreciation
D
r.
$
62,000.00
To vehicle
$
126,000.0
0
To deferred tax
liability
$
18,600.00