On 1 July 2019, Miguel Ltd acquired all of the shares of Antonio Ltd, on a...

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On 1 July 2019, Miguel Ltd acquired all of the shares of Antonio Ltd, on a cum-div. basis, for $8,100,000. At this date, the equity and liability sections of Antonio Ltd's statement of financial position showed the following balances: Share capital - 1 200 000 shares General reserve Retained earnings Revaluation surplus Dividend payable $ 3,600,000 1,050,000 2,880,000 At 1 July 2019, Antonio Ltd's assets included $138 000 of recorded goodwill. The dividend payable at acquisition date was subsequently paid in August 2019. Land Inventory Plant (cost $900 000) 180,000 75,000 At acquisition date, all the identifiable assets and liabilities of Antonio Ltd were recorded at amounts equal to fair value except for the following: Carrying amount $1,500 000 135 000 720 000 Fair value $1,650 000 165 000 840 000 The inventory on hand in Antonio Ltd at 1 July 2019 was sold in November 2019. The plant was estimated to have a further 5-year life with zero residual value. The land on hand at acquisition date was sold to Laraniva Ltd in March 2021. On 30 June 2020, goodwill was impaired by $2 500. The tax rate is 30%. During the period 1 July 2019 to 30 June 2021, the following intragroup transactions have occurred between Miguel Ltd and Antonio Ltd: (T1) At 30 June 2020, Miguel Ltd approved and declared a final dividend of $45,000, and Antonio Ltd declared and approved a final dividend of $75,000. This dividend was paid on 25 July 2020. (T2) At 30 June 2021, Miguel Ltd approved and declared a final dividend of $36,000, and Antonio Ltd declared and approved a final dividend of $54,000. (T3) On 1 January 2020, Miguel Ltd provided a $1,500,000 loan to Antonio Ltd. The interest rate on this loan is 10%, and interest is paid each year on 30 June. At 30 June 2021, no principal repayments have been made on the loan. (T4) Miguel Ltd issued 2 000 5% debentures of $150 at nominal value on 1 April 2021. Antonio Ltd acquired 1 000 of these debentures. Interest is payable on 1 July each year. (TS) In April 2020, Miguel Ltd sold inventory to Antonio Ltd for $72,000. The inventory had previously cost Miguel Ltd $54,000. By 30 June 2020, three-quarters of this inventory had been sold to Sally Ltd for $66,000. The remainder of the inventory was sold to San Ltd in August 2020 for $22,500. (T6) On 3 June 2021, Antonio Ltd sold inventory to Miguel Ltd for $126,000. The transfer price included a mark-up of 20% on cost. At 30 June 2021, one-half of this inventory was still on hand. (T7) In November 2019, Antonio Ltd sold inventory to Miguel Ltd at a transfer price of $135,000. The inventory had previously cost Antonio Ltd $93,000. All of this inventory was subsequently sold to Antigua Ltd in July 2020 for $157,500. (T8) On 1 January 2020, Miguel Ltd sold machinery to Antonio Ltd for $360,000. The machinery had a written down value at the time of sale of $270,000. For this type of machinery, both entities charge depreciation at a rate of 20% p.a. straight-line. (T9) On 1 March 2021, Antonio Ltd sold equipment to Miguel Ltd for $165 000, this asset having a carrying amount at the time of sale of $138,000. Antonio Ltd had treated the asset a depreciable non-current asset, being depreciated at 15% on cost, whereas Miguel Ltd records the equipment as inventory. Miguel Ltd sold this asset to Oscar Ltd on 15 June 2021 for $184,500. (T10) On 1 January 2021, Antonio Ltd acquired furniture for $135,000 from Miguel Ltd. The furniture had originally cost Miguel Ltd $186,000 and had a carrying amount at the time of sale of $144,000. The sale was made on credit and, at 30 June 2021, $13,500 was still outstanding. Both entities apply depreciation at a rate of 10% p.a. straight line. Required a) Prepare the acquisition analysis and consolidation worksheet entries at 1 July 2019. b) Prepare the consolidation worksheet entries at 30 June 2020. c) Prepare the consolidation worksheet entries at 30 June 2021. On 1 July 2019, Miguel Ltd acquired all of the shares of Antonio Ltd, on a cum-div. basis, for $8,100,000. At this date, the equity and liability sections of Antonio Ltd's statement of financial position showed the following balances: Share capital - 1 200 000 shares General reserve Retained earnings Revaluation surplus Dividend payable $ 3,600,000 1,050,000 2,880,000 At 1 July 2019, Antonio Ltd's assets included $138 000 of recorded goodwill. The dividend payable at acquisition date was subsequently paid in August 2019. Land Inventory Plant (cost $900 000) 180,000 75,000 At acquisition date, all the identifiable assets and liabilities of Antonio Ltd were recorded at amounts equal to fair value except for the following: Carrying amount $1,500 000 135 000 720 000 Fair value $1,650 000 165 000 840 000 The inventory on hand in Antonio Ltd at 1 July 2019 was sold in November 2019. The plant was estimated to have a further 5-year life with zero residual value. The land on hand at acquisition date was sold to Laraniva Ltd in March 2021. On 30 June 2020, goodwill was impaired by $2 500. The tax rate is 30%. During the period 1 July 2019 to 30 June 2021, the following intragroup transactions have occurred between Miguel Ltd and Antonio Ltd: (T1) At 30 June 2020, Miguel Ltd approved and declared a final dividend of $45,000, and Antonio Ltd declared and approved a final dividend of $75,000. This dividend was paid on 25 July 2020. (T2) At 30 June 2021, Miguel Ltd approved and declared a final dividend of $36,000, and Antonio Ltd declared and approved a final dividend of $54,000. (T3) On 1 January 2020, Miguel Ltd provided a $1,500,000 loan to Antonio Ltd. The interest rate on this loan is 10%, and interest is paid each year on 30 June. At 30 June 2021, no principal repayments have been made on the loan. (T4) Miguel Ltd issued 2 000 5% debentures of $150 at nominal value on 1 April 2021. Antonio Ltd acquired 1 000 of these debentures. Interest is payable on 1 July each year. (TS) In April 2020, Miguel Ltd sold inventory to Antonio Ltd for $72,000. The inventory had previously cost Miguel Ltd $54,000. By 30 June 2020, three-quarters of this inventory had been sold to Sally Ltd for $66,000. The remainder of the inventory was sold to San Ltd in August 2020 for $22,500. (T6) On 3 June 2021, Antonio Ltd sold inventory to Miguel Ltd for $126,000. The transfer price included a mark-up of 20% on cost. At 30 June 2021, one-half of this inventory was still on hand. (T7) In November 2019, Antonio Ltd sold inventory to Miguel Ltd at a transfer price of $135,000. The inventory had previously cost Antonio Ltd $93,000. All of this inventory was subsequently sold to Antigua Ltd in July 2020 for $157,500. (T8) On 1 January 2020, Miguel Ltd sold machinery to Antonio Ltd for $360,000. The machinery had a written down value at the time of sale of $270,000. For this type of machinery, both entities charge depreciation at a rate of 20% p.a. straight-line. (T9) On 1 March 2021, Antonio Ltd sold equipment to Miguel Ltd for $165 000, this asset having a carrying amount at the time of sale of $138,000. Antonio Ltd had treated the asset a depreciable non-current asset, being depreciated at 15% on cost, whereas Miguel Ltd records the equipment as inventory. Miguel Ltd sold this asset to Oscar Ltd on 15 June 2021 for $184,500. (T10) On 1 January 2021, Antonio Ltd acquired furniture for $135,000 from Miguel Ltd. The furniture had originally cost Miguel Ltd $186,000 and had a carrying amount at the time of sale of $144,000. The sale was made on credit and, at 30 June 2021, $13,500 was still outstanding. Both entities apply depreciation at a rate of 10% p.a. straight line. Required a) Prepare the acquisition analysis and consolidation worksheet entries at 1 July 2019. b) Prepare the consolidation worksheet entries at 30 June 2020. c) Prepare the consolidation worksheet entries at 30 June 2021.

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Answer a Acquisition analysis and consolidation worksheet entries at 1 July 2019 Dr Antonio Ltd Cr M... View the full answer