QUESTION 2 On 1 July 2017, Venus Bhd acquired 400,000 units ordinary shares, 5,000 6% cumulative...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
QUESTION 2 On 1 July 2017, Venus Bhd acquired 400,000 units ordinary shares, 5,000 6% cumulative preference shares and RM15,000 10% debentures of Mercury Bhd. On that date, the retained earnings of Mercury Bhd was RM100,000. The summarized statements of Profit or Loss and statements of changes in equity (extract) of Venus Bhd and Mercury Bhd for the year ended 30 June 2019 are as follows: Revenue Cost of sales Gross profit Statements of Profit or Loss for the year ended 30 June 2019 Venus Bhd RM 1,526,700 (917,700) 609,000 (467,800) (22,000) 98,000 Operating expenses Finance costs Investment income Profit before taxation Income tax expense Profit for the year Retained profit brought forward Profit for the year Interim dividends Transfer to general reserve Retained profit carried forward Statements of Changes in Equity for the year ended 30 June 2019 (extract) Venus Bhd RM Mercury Bhd RM 760,000 240,000 174,700 (30,000) (8,000) - Ordinary - Preference Company Namo Venus Bhd Mercury Bhd 2 Ordinary sharoe 217,200 (42,500) 174,700 Additional information: 1. The issued share capital of Venus Bhd and Mercury Bhd were as follows: 8% Cumulative 6% Cumulative Proforence Proforence shares shares Units Units 200,000 Units 1,800,000 500,000 (20,000) 876,700 Mercury Bhd RM 876,800 (679,400) 197,400 (97,200) (5,000) 100,000 95,200 (30,400) 64,800 64,800 (6,000) (3,000) (10,000) 285,800 10% Dobonturos RM 50,000 2. Land and building of Mercury Bhd have the following value: Fair value as at 1 July 2017 Carrying value as at 30 June 2017 Land RM 470,000 350,000 Remaining useful lives of the building on the date of acquisition was 20 years. Building is depreciated on straight line method over its useful lives, and to be charged on yearly basis. Building RM 452,000 350,000 3. Investment income of Venus Bhd includes profit from sale of equipment to Mercury Bhd for RM14,000 and dividends received from Mercury Bhd of RM6,300. On the date of disposal, the remaining useful lives of the equipment is 5 years. Depreciation of the equipment is calculated on straight line method over its useful lives, and to be charged on yearly basis. 4. Finance costs of Mercury Bhd are all debenture interest expense. Venus Bhd has not yet recorded the debenture interest receivable from Mercury Bhd. 5. Mercury Bhd sold goods to Venus Bhd at a mark-up of 25% on cost. During the year, Mercury Bhd recorded sales of RM49,500 to Venus Bhd. As at the year-end, Venus Bhd still held one third (1/3) of these goods. Required: 6. The directors of Venus Bhd and Mercury Bhd have declared the final preference dividend on 20 June 2019 but not yet recorded by both companies. 7. Goodwill on consolidation was impaired by RM10,000 as at 30 June 2019. m a. Consolidated Statement of Profit or Loss of Venus Bhd and its subsidiary Mercury Bhd for the year ended 30 June 2019. b. Consolidated Statement of Changes in Equity (extract) for the year ended 30 June 2019 showing the group retained profit and non-controlling interest only. QUESTION 2 On 1 July 2017, Venus Bhd acquired 400,000 units ordinary shares, 5,000 6% cumulative preference shares and RM15,000 10% debentures of Mercury Bhd. On that date, the retained earnings of Mercury Bhd was RM100,000. The summarized statements of Profit or Loss and statements of changes in equity (extract) of Venus Bhd and Mercury Bhd for the year ended 30 June 2019 are as follows: Revenue Cost of sales Gross profit Statements of Profit or Loss for the year ended 30 June 2019 Venus Bhd RM 1,526,700 (917,700) 609,000 (467,800) (22,000) 98,000 Operating expenses Finance costs Investment income Profit before taxation Income tax expense Profit for the year Retained profit brought forward Profit for the year Interim dividends Transfer to general reserve Retained profit carried forward Statements of Changes in Equity for the year ended 30 June 2019 (extract) Venus Bhd RM Mercury Bhd RM 760,000 240,000 174,700 (30,000) (8,000) - Ordinary - Preference Company Namo Venus Bhd Mercury Bhd 2 Ordinary sharoe 217,200 (42,500) 174,700 Additional information: 1. The issued share capital of Venus Bhd and Mercury Bhd were as follows: 8% Cumulative 6% Cumulative Proforence Proforence shares shares Units Units 200,000 Units 1,800,000 500,000 (20,000) 876,700 Mercury Bhd RM 876,800 (679,400) 197,400 (97,200) (5,000) 100,000 95,200 (30,400) 64,800 64,800 (6,000) (3,000) (10,000) 285,800 10% Dobonturos RM 50,000 2. Land and building of Mercury Bhd have the following value: Fair value as at 1 July 2017 Carrying value as at 30 June 2017 Land RM 470,000 350,000 Remaining useful lives of the building on the date of acquisition was 20 years. Building is depreciated on straight line method over its useful lives, and to be charged on yearly basis. Building RM 452,000 350,000 3. Investment income of Venus Bhd includes profit from sale of equipment to Mercury Bhd for RM14,000 and dividends received from Mercury Bhd of RM6,300. On the date of disposal, the remaining useful lives of the equipment is 5 years. Depreciation of the equipment is calculated on straight line method over its useful lives, and to be charged on yearly basis. 4. Finance costs of Mercury Bhd are all debenture interest expense. Venus Bhd has not yet recorded the debenture interest receivable from Mercury Bhd. 5. Mercury Bhd sold goods to Venus Bhd at a mark-up of 25% on cost. During the year, Mercury Bhd recorded sales of RM49,500 to Venus Bhd. As at the year-end, Venus Bhd still held one third (1/3) of these goods. Required: 6. The directors of Venus Bhd and Mercury Bhd have declared the final preference dividend on 20 June 2019 but not yet recorded by both companies. 7. Goodwill on consolidation was impaired by RM10,000 as at 30 June 2019. m a. Consolidated Statement of Profit or Loss of Venus Bhd and its subsidiary Mercury Bhd for the year ended 30 June 2019. b. Consolidated Statement of Changes in Equity (extract) for the year ended 30 June 2019 showing the group retained profit and non-controlling interest only.
Expert Answer:
Answer rating: 100% (QA)
a Consolidated Statement of Profit or Loss of Venus Bhd and its subsidiary Mercury Bhd for the year ... View the full answer
Related Book For
International Financial Reporting A Practical Guide
ISBN: 978-1292200743
6th edition
Authors: Alan Melville
Posted Date:
Students also viewed these accounting questions
-
For the year ended 30 June 2018, the business income and expenses for APC Restaurant are shown in the following Profit & Loss Statement that was prepared under cash basis: Peter also provides you...
-
Toms depreciation schedule for the year ended 30 June is set out below All assets have a 100 per cent business use and he uses the diminishing value method All depreciating assets were acquired after...
-
The fixed budget performance report for the year ended 30 June 2018 for Motueka Mint is as follows: Budget Actual Variance Units of production: 84 000 94 000 10 000 F Factory overhead: Variable...
-
Interactive promotion allows customers and companies to work together to create mutually beneficial exchange relationships in an ongoing dialogue. True or false
-
In booksite.elsevier.com/9780124171138., you will find the average yearly rainfall data in inches for the North, Central and Southern Region of the United States from 1975 to 2007. Using the North...
-
The personal holding company tax imposes a penalty on corporations. a. What is the purpose of the personal holding company tax? b. Two tests are used to classify a corporation as a personal holding...
-
When uranium fissions, the fission products are radioactive because the nuclei are neutron-rich. What is the most likely decay mode for these nuclei? A. Alpha decay C. Beta-plus decay B. Beta-minus...
-
Alta Company is constructing a production complex that for interest capitalization. The following information is available: Capitalization period: January 1, 2016, to June 30, 2017 Expenditures on...
-
Packaging, whether b2b or consumer, can have a negative or positive impact on the bottom line and on a companies sustainability initiatives. Discuss a company/product that you feel has innovative...
-
As of December 31, 2016, Moss Company had total cash of $195,000, notes payable of $90,500, and common stock of $84,500. During 2017, Moss earned $42,000 of cash revenue, paid $24,000 for cash...
-
Which includes the wisdom of our dead ancestors: 00000 proprium collective conscious personal unconscious personal conscious collective unconscious
-
In May 2014, currency held by individuals and businesses was $67 billion; chequable deposits owned by individuals were $244 billion and owned by businesses were $361 billion; nonchequable personal...
-
Explain how this news clip illustrates the attempts by banks to maximize profits. Banks are in business to make money for their shareholders, not to put the interests of customers first. This key...
-
A gig refers to a single project or task that an individual completes for pay, and individuals who complete gigs are often referred to as gig workers. Examples of gigs range from driving for Uber and...
-
Hamdi Ulukaya, founder and CEO of Chobani, LLC, left his family dairy business in Turkey to learn English in the United States. Soon after he arrived, he noticed that the strained yogurt popular in...
-
Three years ago, a large clothing retailer called La Ropa de Moda developed and implemented a new pay-for-performance program targeted at sales associates. The relatively new program is a sales...
-
How can the built environment encourage healthy lifestyles? OA By co-locating businesses and residences OB. By encouraging the use of public transportation OC.B through D OD. By causing greater use...
-
A simple random sample of 220 university students were asked what pasta they usually order and with which sauce. The preferences of these respondents are summarised below: Sauce Bolognese Pasta...
-
(a) Explain what is meant by component depreciation and its status under inter national accounting standards. (b) Trin, a limited liability company, owns its business premises. It has just installed...
-
(a) Explain how the amount of a provision should be measured. (b) A company needs to make a provision for the cost of repairing a faulty product supplied to a customer some weeks previously. The...
-
(a) Explain the terms "credit risk", "liquidity risk" and "market risk" which are used in international standard IFRS7. (b) Outline the main disclosures required by IFRS7 in relation to each of these...
-
For a sample of data where n = 7 given below: a. Calculate the mean, median, and mode. b. Calculate the range, variance, standard deviation, and coefficient of variation. c. Calculate the Z score....
-
For a sample of data where n = 6 given below: a. Calculate the mean, median, and mode. b. Calculate the range, variance, standard deviation, and coefficient of variation. c. Calculate the Z scores....
-
Classic LEGO plastic bricks have been fixtures in homes around the world for more than 70 years. Just 15 years ago, The LEGO Group (TLG) was near bankruptcy, spiraling downward and losing money at a...
Study smarter with the SolutionInn App