Assignment MPASOS Advanced Corporate Reporting.pdf - Adobe Reader File Edit View Window Help CASE STUDY 1: Business Consolidations (50 marks] The following is the extracted financial records from Excel Ltd and its subsidiary Right Ltd at 30 June 2019 Excel Lid (000) Right Lid (000) Reconciliation of opening and closing retained carnings Sales revente less Cost of goods sold 1342.8 -928 414.8 Gross Profit Dividends received from Right Management revenue Gain on sale of plant administrative expenses Depreciation Management fee expense Other Expenses -2022 Profit before tax Tax expense -144 286 84.4 201.6 478.4 Profit after tax 288 638.8 Retained earnings 30 June 2018 926.8 680 Dividends paid -274.8 652 -186 494 Retained earnings 30 June 2019 Statement of financial position Type here to search . - 10:58 PM 69 ENG 5/12/2020 g Assignment MPASOS Advanced Corporate Reporting.pdf - Adobe Reader File Edit View Window Help Sales revenue 1342.8 1080 less Cost of goads sold Gross Profit 414.8 Dividends received from Right Management revenue Gain on sale of plant administrative expenses Depreciation Management fee expense Other Expenses Profit before tax -144 286 84.4 122 Tax expense Profit after tax 2016 288 638.8 Retained canings30 Junie 2018 478.4 926.8 680 Dividends paid -274.8 Retained canings30 June 2019 Statement of financial position Shareholders' equity Retained earnings Share capital Type here to search . 10259 PM 69 ENG 5/12/2020 g Assignment MPASOS Advanced Corporate Reporting.pdf - Adobe Reader File Edit View Window Help Curent liabilities Accounts payable 109.4 Tax payable 52.6 Nol-curent liabilities Loans 347 1891 1268.8 Current assets Accounts receivable 118.8 124.6 Inventory 184 Non-urrent assets Land 448 Plant at cost 599.7 652 711.6 -277.6 Accumulated depreciation -171.5 Investment in Right Ltd 1891 1268.6 Other Additional Information: Excel Ltd acquired its 100 per cent interest in Riglet Ltd on 1 July 2014, that is five years earlier. Almal dle the capital and reserves of Ragil Lid were Share capital $400 000 Retained earings $360 000 $260.000 At the date of nequisition all assets were considered to be fairly valued e Type here to search O . 10259 PM 69 ENG 5/12/2020 g Assignment MPASOS Advanced Corporate Reporting.pdf - Adobe Reader File Edit View Window Help TAYI 1208, Current assets Accounts receivable 118.5 124.6 Inventory Non-current assets Land 448 Plaut at cost 599.7 711.6 -277.6 Accumulated depreciation -171.5 Investment in Right Ltd 712 1891 1268.6 Other Additional Information: Excel Ltd acquired its 100 per cent interest in Right Ltd on 1 July 2014, that is five years earlier. At that date the capital and reserves of Right Lid were Share capital $400 000 Retained earnings $360 000 SAGO 000 . . At the date of acquisition all assets were considered to be fairly valued During the year Excel Lad made total sales to Ripht Lnd of $120 000, while Right Ltd sold $100 000 in inventory to Excel Ltd. The opening inventory in Excel Ltd ns at 1 July 2018 included inventory armured from Right Ltd for $80 000 that cost Right Ltd $60 000 to produce The closing inventory in Excel Ltd includes inventory acquired from Right Ltd at a cost of 566 000 Thus cast Right Ltd 356 000 to produce The closing inventory of Right Ltd includes inventory acquired from Excel Adat a cost of $24000. This cout Excel Lid S20 000 to produce Type here to search . 10259 PM 69 ENG 5/12/2020 g Assignment MPASOS Advanced Corporate Reporting.pdf - Adobe Reader File Edit View Window Help On 1 July 2018 Right Ltd old an item of plant to Excel Ltd for $232 000 when its carrying vnlue in Right It's accounts was $162.000 (cast $270 000, Accumulated depreciation $108 000). Tlus plant is assessed as having a remnanung useful life of six years. The Group has a policy of measuring als properly, plant and equentent using the cost model Right Lid paid $53 000 in management fees to Excel Ltd. The tax rate is 30 per cent. Required: 1) Prepare consolidated journal entries for the above inluetation as al 30 Junie 2019. [10 Marks] 2) Prepare a consolidated salesnenl of cerele sive cone, a consolsdaled stalesnesl of changes in equity and a cousolidated Statement of financial position for Excel Ltd and Right Ltd as at 30 June 2019. You also need to provide the consolidated work sheet [10+10+5-5-30 Marks 3) With reference to Excel Lid's acquisition of Right Ltd. Comment on the appropriateness of the acquations as a business strategy on the firm's expansion [10 marks] Type here to search . 10259 PM 69 ENG 5/12/2020 g Assignment MPASOS Advanced Corporate Reporting.pdf - Adobe Reader File Edit View Window Help CASE STUDY 1: Business Consolidations (50 marks] The following is the extracted financial records from Excel Ltd and its subsidiary Right Ltd at 30 June 2019 Excel Lid (000) Right Lid (000) Reconciliation of opening and closing retained carnings Sales revente less Cost of goods sold 1342.8 -928 414.8 Gross Profit Dividends received from Right Management revenue Gain on sale of plant administrative expenses Depreciation Management fee expense Other Expenses -2022 Profit before tax Tax expense -144 286 84.4 201.6 478.4 Profit after tax 288 638.8 Retained earnings 30 June 2018 926.8 680 Dividends paid -274.8 652 -186 494 Retained earnings 30 June 2019 Statement of financial position Type here to search . - 10:58 PM 69 ENG 5/12/2020 g Assignment MPASOS Advanced Corporate Reporting.pdf - Adobe Reader File Edit View Window Help Sales revenue 1342.8 1080 less Cost of goads sold Gross Profit 414.8 Dividends received from Right Management revenue Gain on sale of plant administrative expenses Depreciation Management fee expense Other Expenses Profit before tax -144 286 84.4 122 Tax expense Profit after tax 2016 288 638.8 Retained canings30 Junie 2018 478.4 926.8 680 Dividends paid -274.8 Retained canings30 June 2019 Statement of financial position Shareholders' equity Retained earnings Share capital Type here to search . 10259 PM 69 ENG 5/12/2020 g Assignment MPASOS Advanced Corporate Reporting.pdf - Adobe Reader File Edit View Window Help Curent liabilities Accounts payable 109.4 Tax payable 52.6 Nol-curent liabilities Loans 347 1891 1268.8 Current assets Accounts receivable 118.8 124.6 Inventory 184 Non-urrent assets Land 448 Plant at cost 599.7 652 711.6 -277.6 Accumulated depreciation -171.5 Investment in Right Ltd 1891 1268.6 Other Additional Information: Excel Ltd acquired its 100 per cent interest in Riglet Ltd on 1 July 2014, that is five years earlier. Almal dle the capital and reserves of Ragil Lid were Share capital $400 000 Retained earings $360 000 $260.000 At the date of nequisition all assets were considered to be fairly valued e Type here to search O . 10259 PM 69 ENG 5/12/2020 g Assignment MPASOS Advanced Corporate Reporting.pdf - Adobe Reader File Edit View Window Help TAYI 1208, Current assets Accounts receivable 118.5 124.6 Inventory Non-current assets Land 448 Plaut at cost 599.7 711.6 -277.6 Accumulated depreciation -171.5 Investment in Right Ltd 712 1891 1268.6 Other Additional Information: Excel Ltd acquired its 100 per cent interest in Right Ltd on 1 July 2014, that is five years earlier. At that date the capital and reserves of Right Lid were Share capital $400 000 Retained earnings $360 000 SAGO 000 . . At the date of acquisition all assets were considered to be fairly valued During the year Excel Lad made total sales to Ripht Lnd of $120 000, while Right Ltd sold $100 000 in inventory to Excel Ltd. The opening inventory in Excel Ltd ns at 1 July 2018 included inventory armured from Right Ltd for $80 000 that cost Right Ltd $60 000 to produce The closing inventory in Excel Ltd includes inventory acquired from Right Ltd at a cost of 566 000 Thus cast Right Ltd 356 000 to produce The closing inventory of Right Ltd includes inventory acquired from Excel Adat a cost of $24000. This cout Excel Lid S20 000 to produce Type here to search . 10259 PM 69 ENG 5/12/2020 g Assignment MPASOS Advanced Corporate Reporting.pdf - Adobe Reader File Edit View Window Help On 1 July 2018 Right Ltd old an item of plant to Excel Ltd for $232 000 when its carrying vnlue in Right It's accounts was $162.000 (cast $270 000, Accumulated depreciation $108 000). Tlus plant is assessed as having a remnanung useful life of six years. The Group has a policy of measuring als properly, plant and equentent using the cost model Right Lid paid $53 000 in management fees to Excel Ltd. The tax rate is 30 per cent. Required: 1) Prepare consolidated journal entries for the above inluetation as al 30 Junie 2019. [10 Marks] 2) Prepare a consolidated salesnenl of cerele sive cone, a consolsdaled stalesnesl of changes in equity and a cousolidated Statement of financial position for Excel Ltd and Right Ltd as at 30 June 2019. You also need to provide the consolidated work sheet [10+10+5-5-30 Marks 3) With reference to Excel Lid's acquisition of Right Ltd. Comment on the appropriateness of the acquations as a business strategy on the firm's expansion [10 marks] Type here to search . 10259 PM 69 ENG 5/12/2020 g