The Dali Group consisted of Dali Ltd, the parent, and its subsidiary, Gleeson Pty Ltd. On...

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The Dali Group consisted of Dali Ltd, the parent, and its subsidiary, Gleeson Pty Ltd. On 31 December 20X6, Dali gaincd control of Drysdale by purchasing all its share capital for $250000. The purchase was based on the following fair values for Drysdale assets, which differ from their carrying amounts: Accounts receivable 21 400 Inventory 31000 Patents (not recorded by Drysdale) 15000 Equipment assets 170000 Financial statements of the three companics at the control date are shown in the workshecet below. At this date: • Gleeson has made a $400 payment to Dali, which has not yet reccived it. • Dali has shipped inventory goods to Gleeson invoiced at $900. Drysdale has not yet recived these goods or recorded them, but they have been included in the above fair value measure of the inventory. Drysdale applies the cost model to equipment. (e) Complete the worksheet below up to the sum column. (b) Prepare data adjustments in alternative general journal form with appropriate commentaries. Consolidation worksheet at 31 December 20X6: Balance sheet (data preparation) Data adjustments Dali Gleeson Drysdale Sum Dr Cr Paid-up capital 545 000 150000 175 000 Asset revaluation reserve 150 000 25 000 Other reserves 60000 5 000 Retained profits 40000 19000 10000 Owners' equity 795 000 194 000 190 000 Accounts payable 75 000 40 500 60 000 Estimated uncollectible debts 15 000 2 500 800 Accumulated depreciation-equipment 100 000 38 000 33 000 Total equities and asset contras 985 000 275000 283 800 Cash 5000 35000 25 500 Accounts receivable 150 000 25 000 24 300 Inventory 60000 55 000 35 000 Investment in subsidiaries 650000 Patents 160 000 275 000 Equipment 120000 199000 Total assets 985 000 283 800 The Dali Group consisted of Dali Ltd, the parent, and its subsidiary, Gleeson Pty Ltd. On 31 December 20X6, Dali gaincd control of Drysdale by purchasing all its share capital for $250000. The purchase was based on the following fair values for Drysdale assets, which differ from their carrying amounts: Accounts receivable 21 400 Inventory 31000 Patents (not recorded by Drysdale) 15000 Equipment assets 170000 Financial statements of the three companics at the control date are shown in the workshecet below. At this date: • Gleeson has made a $400 payment to Dali, which has not yet reccived it. • Dali has shipped inventory goods to Gleeson invoiced at $900. Drysdale has not yet recived these goods or recorded them, but they have been included in the above fair value measure of the inventory. Drysdale applies the cost model to equipment. (e) Complete the worksheet below up to the sum column. (b) Prepare data adjustments in alternative general journal form with appropriate commentaries. Consolidation worksheet at 31 December 20X6: Balance sheet (data preparation) Data adjustments Dali Gleeson Drysdale Sum Dr Cr Paid-up capital 545 000 150000 175 000 Asset revaluation reserve 150 000 25 000 Other reserves 60000 5 000 Retained profits 40000 19000 10000 Owners' equity 795 000 194 000 190 000 Accounts payable 75 000 40 500 60 000 Estimated uncollectible debts 15 000 2 500 800 Accumulated depreciation-equipment 100 000 38 000 33 000 Total equities and asset contras 985 000 275000 283 800 Cash 5000 35000 25 500 Accounts receivable 150 000 25 000 24 300 Inventory 60000 55 000 35 000 Investment in subsidiaries 650000 Patents 160 000 275 000 Equipment 120000 199000 Total assets 985 000 283 800

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