Company Accounting Project Report: Consolidation Worksheet Entries, Acquisition Analysis, and Valuation Reserve

Running Head: Company Accounting
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Project Report: Company Accounting

Company Accounting
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Contents
Part A................................................................................................................................3
Part B................................................................................................................................3
Part C................................................................................................................................4
References.........................................................................................................................6

Company Accounting
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Part A:
Acquisition Analysis at 1July 2017:
Share Capital $ 13,000
General Reserve $ 5,000
Retained Earnings $ 4,050
Book Value of total assets $ 22,050
Add: Fair Value Adjustments:
Plant $ 1,000
Land $ 2,000
Inventories $ 800 $ 3,800
Add: Unrecorded assets and liabilities:
Brand Value $ 1,200
Unrecorded Liabilities -$ 1,500 -$ 300
Fair Value of Net Identifiable Assets $ 25,550
Less: Purchase Consideration Transferred $ 24,600
Gain on Acquisition $ 950
Goodwill appearing in the books $ 500
Net Gain $ 450
(Hoyle, Schaefer & Doupnik, 2015)
Part B:
Consolidation Worksheet Entries at 30 June 2019:
Explanations Debit Credit
Share Capital $ 13,000
General Reserve 01/07/2017 $ 5,000
Retained Earnings 01/07/2017 $ 4,050
Business Combination Valuation
Reserve $ 22,050
Plant $ 1,000
Land $ 2,000
Inventories $ 800
Brand Value $ 1,200
Unrecorded Liabilities $ 1,500
Business Combination Valuation
Reserve $ 3,500
Business Combination Valuation
Reserve $ 25,550
Purchase Consideration Transferred $ 24,600
Goodwill $ 500