On 1 July 2020, Jane Ltd, an Australian company, acquired all of the issued shares of Doe
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Question:
On 1 July 2020, Jane Ltd, an Australian company, acquired all of the issued shares of Doe Ltd, a company incorporated in the US. The financial statements of profit or loss and other comprehensive income and statement of financial position of Doe Ltd at 30 June 2020 and 30 June 2021 were as follows:
Exchange rates based on equivalence to 1Us$ were as follows:
Additional information:
- On 1 October 2020, Doe Ltd paid US$50 000 for a sonic scanner which is to be depreciated evenly over a 10-year period. In addition, the land on hand at the beginning of the year was sold for US$112 000 on the same date. The carrying amount of the land at the date of sale was US$100 000.
- On 1 January 2021, Doe Ltd acquired a new plant for US$100 000. This plant has a useful life of 5 years. Doe Ltd expects to consume the benefits of this plant evenly over its life. On 1 March 2021, Doe Ltd acquired $US150 000 worth of land.
- Movements in Land, Plant and Machinery over the year ended 30 June 2021 were as follows:
- Doe Ltd declared dividends of US$40 000 for the year ended 30 June 2021. A quarter of these were the interim dividends declared and paid on 1 January 2021 while the remaining were declared on 1 June 2021.
- Sales, purchases, and expenses occurred evenly throughout the period. The closing inventories on 30 June 2021 were acquired during the last 2 months of the financial year ended 30 June 2021.
Required:
If the functional currency for Jane Ltd is the Australian Dollar, prepare the financial statements of Jane Ltd at 30 June 2021 in the functional currency.
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