On 1 July 2016, Jackson Ltd acquired all the issued shares (cum div.) of Laurie Ltd...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On 1 July 2016, Jackson Ltd acquired all the issued shares (cum div.) of Laurie Ltd for $240 000. At that date, the financial statements of Laurie Ltd showed the following information: Share capital General reserve Retained earnings Dividend payable $100 000 50 000 70 000 20 000 All the assets and liabilities of Jackson Ltd were recorded at amounts equal to their fair values at the acquisition date. The dividend payable reported at 1 July 2016 by Laurie Ltd was paid on 15 August 2016. Laurie Ltd paid a further dividend of $25 000 on 2 February 2017 from post-acquisition profits. Required 1. Prepare the acquisition analysis at 1 July 2016. 2. Prepare the consolidation worksheet entries for Jackson Ltd's group at 1 July 2016. 3. Prepare the consolidation worksheet entries for Jackson Ltd's group at 30 June 2017. 4. How would the entries for 2 and 3 above change if the shares were bought on an ex div. basis? On 1 July 2016, Jackson Ltd acquired all the issued shares (cum div.) of Laurie Ltd for $240 000. At that date, the financial statements of Laurie Ltd showed the following information: Share capital General reserve Retained earnings Dividend payable $100 000 50 000 70 000 20 000 All the assets and liabilities of Jackson Ltd were recorded at amounts equal to their fair values at the acquisition date. The dividend payable reported at 1 July 2016 by Laurie Ltd was paid on 15 August 2016. Laurie Ltd paid a further dividend of $25 000 on 2 February 2017 from post-acquisition profits. Required 1. Prepare the acquisition analysis at 1 July 2016. 2. Prepare the consolidation worksheet entries for Jackson Ltd's group at 1 July 2016. 3. Prepare the consolidation worksheet entries for Jackson Ltd's group at 30 June 2017. 4. How would the entries for 2 and 3 above change if the shares were bought on an ex div. basis?
Expert Answer:
Answer rating: 100% (QA)
Acquisition Analysis Particulars Net fair value of identifiable assets and l... View the full answer
Related Book For
Posted Date:
Students also viewed these economics questions
-
On 1 July 2023, Gordon Ltd acquired all the issued shares (cum div.) of Henry Ltd for $528000. At that date, the financial statements of Henry Ltd showed the following information. Share capital...
-
On 1 October 2022, Flint Corporation acquired all the issued shares of Mark Pty Ltd, paying $250 000 cash. At that date, the financial statements of Mark Ltd showed the following information. Share...
-
On 1 July 2019, John Ltd acquired all the issued shares of Wayne Ltd for $250,000. At this date, the financial statements of Wayne Ltd showed the following: Share capital Retained earnings General...
-
Explain why entrepreneurial firms are often in a strong position to use combination strategies.
-
For each separate case below, follow the 3-step process for adjusting the prepaid asset account: Step 1: Determine what the current account balance equals. Step 2: Determine what the current account...
-
Find the eigen functions of - (h2/2m) d2/dx2. If the eigen functions are to remain finite for x , what are the allowed eigen values?
-
What is the difference between management accounting and the other two types of conventional accountingfinancial accounting and other accounting systems?
-
Sylvan Wood Products purchases alder logs for $100 per log. After the bark is stripped, the log is spun on a veneer cutter, which peels thin layers of wood (referred to as veneer) that are sold to...
-
1 Consider the information below for Company A and Company B. Both companies are located in Country Y Company A is a manufacturer of components used in the car industry Company B is a manufacturer of...
-
Situation Russell International, a publicly traded company, reacquired 500,000 shares of its common stock during July 2008 at a cost of $25 per share. The current market price of the stock was $20...
-
Prepare a cash flow forecast in a tabular form with reference to the following information: Contract Sum for Main Contract Works: AUD$200,000,000 including a Provisional Sum of AUD $10,000,000 for...
-
Fill in the Blank. The instrument that measures the velocity of a vibrating body is called a(n) _____________ .
-
A vibrometer is used to measure the vibration of an engine whose operating-speed range is from \(500 \mathrm{rpm}\) to \(2000 \mathrm{rpm}\). The vibration consists of two harmonics. The amplitude...
-
Fill in the Blank. A seismic instrument consists of a(n) ______________ system mounted on the vibrating body.
-
Fill in the Blank. Phase marks are used in ____________ plane balancing using a vibration analyzer.
-
Fill in the Blank. Machine errors can cause ____________ in rotating machines.
-
The perception of a linear flow of information is characteristic of the Newtonian universe, yet the flow of information in a quantum universe is __________. Choose one answer. a. temporal b. holistic...
-
If the amplifier indicated by the box input impedance of oo, which of the following statements are true ? has an open loop gain as well as Feedback factor (\beta = 1/ R_1\) The feedback is voltage...
-
On 1 October 2019, Conston Ltd (which prepares accounts to 30 September) leases an asset to a lessee. The lease term is five years and the lessee is required to make lease payments of 27,500 each on...
-
IFRS16 Leases replaces IAS17 Leases for accounting periods beginning on or after 1 January 2019. The main aim of the new standard is to ensure that a lessee's financial statements provide a faithful...
-
On 1 January 2018, G plc issued 2 million of 7% convertible loan stock. The holders of this stock may choose to convert the stock to ordinary shares on 1 January 2022, 2023 or 2024. The number of...
-
(a) Design the saturated load inverter circuit in Figure 16.5 (a) such that the power dissipation is \(0.30 \mathrm{~mW}\) and the output voltage is \(0.08 \mathrm{~V}\) for \(v_{I}=1.4...
-
An NMOS inverter with saturated load is shown in Figure 16.5(a). The bias is \(V_{D D}=3 \mathrm{~V}\) and the transistor threshold voltages are \(0.5 \mathrm{~V}\). (a) Find the ratio \(K_{D} /...
-
Consider the NMOS inverter with saturated load in Figure 16.5(a). Let \(V_{D D}=3 \mathrm{~V}\). (a) Design the circuit such that the power dissipation in the circuit is \(400 \mu \mathrm{W}\) and...
Study smarter with the SolutionInn App