Question 5 The summarised income statements and statements of retained profits of Boulder, Rock and Pebble...
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Question 5 The summarised income statements and statements of retained profits of Boulder, Rock and Pebble for the year ended 31 March 2019 are provided below. Boulder Sales Cost of sales Gross profit Distribution costs Administrative expenses Profit from operations Dividends income from Rock Dividends income from Pebble Profit before tax Tax Net profit for the period Dividends Retained profits at 1 April 2018 Retained profits at 31 March 2019 Rock $'000 $'000 6,400 2,600 (3.700) (1.450) 2,700 (1,100) (700) 900 150 20 1,070 (400) 670 (400) 500 770 1,150 (490) (320) 340 340 (80) 260 (200) 300 360 Pebble $'000 1,500 (800) 700 (150) (200) 350 350 (70) 280 (100) 200 380 The following information is also available: 1. Boulder acquired 3,000,000 ordinary shares in Rock for $3,500,000 on 1 April 2004 when the retained earnings of Rock were $200,000. Boulder acquired 1,000,000 ordinary shares in Pebble for $1,500,000 on 1 June 2018 when the retained earnings of Pebble were $50,000. 2. Rock's and Pebble's total share capital consists of 4,000,000 and 5,000,000 ordinary shares each respectively. 3. At 31 March 2018 Boulder had valued the goodwill arising from the acquisition of Rock at $200,000. An impairment review of this goodwill at 31 March 2019 valued it at $130,000. 4. During the year ended 31 March 2019 Boulder sold goods costing $110,000 to Rock for $200,000. At 31 March 2019, 60% of these goods remained in Rock's inventory. 5. During the year ended 31 March 2019 Pebble sold goods costing $50,000 to Boulder for $75,000. At 31 March 2019, all of these goods remained in Boulder's inventory. Required: (a) Prepare the consolidated income statement for Boulder for the year ended 31 March 2019. (14 marks) (b) Prepare the statement of retained profits for Boulder for the year ended 31 March 2019. (6 marks) (Total 20 marks) Question 5 The summarised income statements and statements of retained profits of Boulder, Rock and Pebble for the year ended 31 March 2019 are provided below. Boulder Sales Cost of sales Gross profit Distribution costs Administrative expenses Profit from operations Dividends income from Rock Dividends income from Pebble Profit before tax Tax Net profit for the period Dividends Retained profits at 1 April 2018 Retained profits at 31 March 2019 Rock $'000 $'000 6,400 2,600 (3.700) (1.450) 2,700 (1,100) (700) 900 150 20 1,070 (400) 670 (400) 500 770 1,150 (490) (320) 340 340 (80) 260 (200) 300 360 Pebble $'000 1,500 (800) 700 (150) (200) 350 350 (70) 280 (100) 200 380 The following information is also available: 1. Boulder acquired 3,000,000 ordinary shares in Rock for $3,500,000 on 1 April 2004 when the retained earnings of Rock were $200,000. Boulder acquired 1,000,000 ordinary shares in Pebble for $1,500,000 on 1 June 2018 when the retained earnings of Pebble were $50,000. 2. Rock's and Pebble's total share capital consists of 4,000,000 and 5,000,000 ordinary shares each respectively. 3. At 31 March 2018 Boulder had valued the goodwill arising from the acquisition of Rock at $200,000. An impairment review of this goodwill at 31 March 2019 valued it at $130,000. 4. During the year ended 31 March 2019 Boulder sold goods costing $110,000 to Rock for $200,000. At 31 March 2019, 60% of these goods remained in Rock's inventory. 5. During the year ended 31 March 2019 Pebble sold goods costing $50,000 to Boulder for $75,000. At 31 March 2019, all of these goods remained in Boulder's inventory. Required: (a) Prepare the consolidated income statement for Boulder for the year ended 31 March 2019. (14 marks) (b) Prepare the statement of retained profits for Boulder for the year ended 31 March 2019. (6 marks) (Total 20 marks)
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Prepare Consolidated Boulder for year ended 31 March 2015 12 1000 acquid 3000000 ording sha... View the full answer
Related Book For
Financial Accounting and Reporting
ISBN: 978-1292162409
18th edition
Authors: Barry Elliott, Jamie Elliott
Posted Date:
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