On 1 July 2015, S acquired the issues shared (cum div.) of V for 120,000. At...

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On 1 July 2015, S acquired the issues shared (cum div.) of V for €120,000. At that date the financial statements of V included the following items: Shared Capital General Reserve Retained Earnings Dividends payable At 1 July 2015, V had recorded goodwill of €2,000, and all its identifiable assets and liabilities were recorded at fair value. Share capital represents 75,000 shares paid to 70 cents per share. €22,500 of uncalled capital was called up on 1 Oct. 2015. The dividend was paid on 20 Oct. 2015. The tax rate is 30%. €52,500 45,000 €9,000 7,600 Required: Prepare the pre-acquisition entries for the preparation of consolidated financial statements at 1 July 2015 (immediately after combination) and 31 Dec. 2015 On 1 July 2015, S acquired the issues shared (cum div.) of V for €120,000. At that date the financial statements of V included the following items: Shared Capital General Reserve Retained Earnings Dividends payable At 1 July 2015, V had recorded goodwill of €2,000, and all its identifiable assets and liabilities were recorded at fair value. Share capital represents 75,000 shares paid to 70 cents per share. €22,500 of uncalled capital was called up on 1 Oct. 2015. The dividend was paid on 20 Oct. 2015. The tax rate is 30%. €52,500 45,000 €9,000 7,600 Required: Prepare the pre-acquisition entries for the preparation of consolidated financial statements at 1 July 2015 (immediately after combination) and 31 Dec. 2015

Answer rating: 100% (QA)

SOLUTION Preacquisition entries at 1 July 2015 immediately after combination To eliminate the invest... View the full answer