Costa Ltd is a company with a 30 June year end. The following information relates to...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Costa Ltd is a company with a 30 June year end. The following information relates to Costa Ltd and its subsidiary Jumbo for the year ended 30 June 20.22. Property at cost Equipment at cost Inventories Investment in Jumbo Ltd @ fair value 30 000 ordinary shares (Cost is equal to fair value) Bank - Obese Bank Trade and other receivables Income tax expense Provisional tax payments Loan to parent (interest free) Dividends paid ordinary shares Dividends paid preference shares Issued share capital - Ordinary shares of R2 each Issued -15% Cumulative preference shares, R1 each Retained earnings - beginning of year Costa Ltd Dr 600 000 300 000 100 000 204 000 1200 124 400 190 000 100 000 40 000 12 000 1 671 600 Cr 200 000 80 000 190 000 Jumbo Ltd Dr 160 000 180 000 80 000 12 000 406 800 170 000 90 000 140 000 30 000 7 500 1 276 300 Cr 100 000 50 000 138 000 Accumulated depreciation - Equipment Bank overdraft - GG Bank Trade and other payables Taxation paid Loan from subsidiary Profit before tax 128 000 48 000 175 600 190 000 120 000 540 000 1 671 600 94 000 238 300 170 000 486 000 1 276 300 Additional information: 1. Costa Ltd acquired its interest in Jumbo Ltd at 1 July 20.18. at that date, Jumbo Ltd's retained earnings amounted to R55 000. Costa Ltd paid R204 000, R75 000 of which was paid for goodwill. The balance was attributable to the revaluation of Jumbo Ltd's property. The carrying amount of the assets and liabilities were equal to the fair value thereof. At the date of acquisition there was no arrear preference dividend. Each share carries one vote. 2. Costa Ltd has bought all its inventories from Jumbo Ltd since 1 July 20.21. jumbo Ltd made a profit of 25% on the cost price of inventories sold to Costa Ltd. 3. Jumbo Ltd paid no preference dividends for the period 1 July 20.18 to 30 June 20.20. on 30 June 20.21 Jumbo Ltd paid a preference dividend of R22 500. 4. On 29 June 20.22 Jumbo Ltd sent inventories to the value of R20 000 to Costa Ltd, Costa Ltd only received the inventories on 3 July 20.22. 5. On 2 January 20.21, Costa Ltd sold a machine to Jumbo Ltd at a profit of R40 000. It is group policy to provide for depreciation at 25% per annum according to the reducing balance method. Ignore all forms of taxes. Page 3 of 9 REQUIRED: QUESTION 1 Prepare the following consolidated financial statements of Costa Ltd and its subsidiary for the year ended 30 June 20.22. Notes to the financial statements are not required. 1.1 Consolidated statement of financial position as at 30 June 20.22 1.2 Consolidated statement of comprehensive income for the year ended 30 June 20.22 Answers are to comply with International Financial Reporting Standards (IFRS's). Show all calculations clearly. Costa Ltd is a company with a 30 June year end. The following information relates to Costa Ltd and its subsidiary Jumbo for the year ended 30 June 20.22. Property at cost Equipment at cost Inventories Investment in Jumbo Ltd @ fair value 30 000 ordinary shares (Cost is equal to fair value) Bank - Obese Bank Trade and other receivables Income tax expense Provisional tax payments Loan to parent (interest free) Dividends paid ordinary shares Dividends paid preference shares Issued share capital - Ordinary shares of R2 each Issued -15% Cumulative preference shares, R1 each Retained earnings - beginning of year Costa Ltd Dr 600 000 300 000 100 000 204 000 1200 124 400 190 000 100 000 40 000 12 000 1 671 600 Cr 200 000 80 000 190 000 Jumbo Ltd Dr 160 000 180 000 80 000 12 000 406 800 170 000 90 000 140 000 30 000 7 500 1 276 300 Cr 100 000 50 000 138 000 Accumulated depreciation - Equipment Bank overdraft - GG Bank Trade and other payables Taxation paid Loan from subsidiary Profit before tax 128 000 48 000 175 600 190 000 120 000 540 000 1 671 600 94 000 238 300 170 000 486 000 1 276 300 Additional information: 1. Costa Ltd acquired its interest in Jumbo Ltd at 1 July 20.18. at that date, Jumbo Ltd's retained earnings amounted to R55 000. Costa Ltd paid R204 000, R75 000 of which was paid for goodwill. The balance was attributable to the revaluation of Jumbo Ltd's property. The carrying amount of the assets and liabilities were equal to the fair value thereof. At the date of acquisition there was no arrear preference dividend. Each share carries one vote. 2. Costa Ltd has bought all its inventories from Jumbo Ltd since 1 July 20.21. jumbo Ltd made a profit of 25% on the cost price of inventories sold to Costa Ltd. 3. Jumbo Ltd paid no preference dividends for the period 1 July 20.18 to 30 June 20.20. on 30 June 20.21 Jumbo Ltd paid a preference dividend of R22 500. 4. On 29 June 20.22 Jumbo Ltd sent inventories to the value of R20 000 to Costa Ltd, Costa Ltd only received the inventories on 3 July 20.22. 5. On 2 January 20.21, Costa Ltd sold a machine to Jumbo Ltd at a profit of R40 000. It is group policy to provide for depreciation at 25% per annum according to the reducing balance method. Ignore all forms of taxes. Page 3 of 9 REQUIRED: QUESTION 1 Prepare the following consolidated financial statements of Costa Ltd and its subsidiary for the year ended 30 June 20.22. Notes to the financial statements are not required. 1.1 Consolidated statement of financial position as at 30 June 20.22 1.2 Consolidated statement of comprehensive income for the year ended 30 June 20.22 Answers are to comply with International Financial Reporting Standards (IFRS's). Show all calculations clearly.
Expert Answer:
Answer rating: 100% (QA)
Question Consolidated Balance Sheet of Costa Ltd and Jumbo Ltd as on 30th June 2022 SlNo Particulars Note Amount EQUITY AND LIABILITIES 1 Shareholders Fund a Share Capital 1 400800 b Reserves Surplus ... View the full answer
Related Book For
Accounting Business Reporting For Decision Making
ISBN: 9780730302414
4th Edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver
Posted Date:
Students also viewed these finance questions
-
Old Office Building Karas Investments owns a small office building in Windhoek, from which the company operates. The Windhoek office was purchased on 1 March 2019. Karas Investments decided to move...
-
The following information relates to the draft financial statements of Samanpa Ltd. Summarised statement of financial position as at: 31/12/2017 31/12/2016 GHS'000 GHS'000 ASSETS Non-current assets...
-
The following information relates to Dork Ltd and its subsidiary Sark Ltd. for the year ended 31 March 2018. Dork Ltd. Sark Ltd. S'000 3,300 (1,890) 1,410 so00 Sales revenue 1,500 Cost of sales (900)...
-
In your opinion, was Saks' zero tolerance policy for employee theft reasonable? Was the policy likely cost-effective? Defend your answers.
-
Are there any significant disadvantages to a credit-scoring system?
-
For commercial banks, what is meant by a managed liability? What role do liquid assets play on the balance sheet of commercial banks? What role do money market instruments play in the asset and...
-
A Sampling Distribution for Average Salary of NFL Players Use StatKey or other technology to generate a sampling distribution of sample means using a sample of size \(n=5\) from the YearlySalary...
-
Assume you are given the following abbreviated financial statement. ($ in millions) $150.0 Fixed and other assets .............. 200.0 Total assets ................... $350.0 Current liabilities...
-
(a) Explain the difference between a seed investment and a start-up investment and how they compare on risk considerations. (6 marks) (b) Both of these stages of investment are often financed...
-
FlyHigh Tech, an early-stage startup, reports to its investors using a balanced scorecard that is prepared at the end of each quarter. During the first and second quarters of the current year, the...
-
Lifehouse Software has 20 percent coupon bonds on the market with 8 years to maturity. The bonds make semiannual payments and currently sell for 109 percent of par. What is the current yield on...
-
Explain the role that group dynamics plays in successful team management and the development of a healthy people-centered workplace culture.
-
Visit Explore: Best Global Brands- Rankings assigned in the Learn section of module 1. Once at this website, filter by the United States as country of choice. Choose 1 of the brands listed....
-
What aspect of group dynamics might be important for a conflict facilitator to consider when planning their approach with individuals or a group in conflict?
-
Define the term linear mass density. Also, w Describe the effects of taking the mass of the meterstick into account when the balancing position is not near the 50-cm position. hat is implied if it is...
-
Two vectors, and lie in the xy plane. Their magnitudes are 3.18 and 5.19 units, respectively, and their directions are 291 and 44.0, respectively, as measured counterclockwise from the positive x...
-
A synchronous motor draws 20 MW (power factor = 0.8 leading). The motor's terminal voltage is 12.8 kV. Determine the sub-transient current from the generator, motor, and fault when a three-phase...
-
Convert the numeral to a HinduArabic numeral. A94 12
-
a. Discuss the advantages and disadvantages of the proposal. b. Outline an alternative reward system.
-
Knowing that you have some accounting experience, a friend has sought your advice regarding a business that he intends purchasing. The balance sheet for the business shows total assets of $80 000 and...
-
The following list contains activities that may be added or subtracted from operating profit when reconciling to cash flows from operating activities. Indicate whether each activity is added,...
-
What is the present value of the following future amounts? a. $805 to be received 10 years from now discounted back to the present at 10 percent b. $376 to be received 5 years from now discounted...
-
To what amount will the following investments accumulate? a. $6,000 invested for 12 years at 12 percent compounded annually b. $7,500 invested for 8 years at 8 percent compounded annually c. $6,400...
-
At what annual rate would the following have to be invested? a. \($820\) to grow to \($1,988.12\) in 13 years b. \($320\) to grow to \($423.10\) in 6 years c. \($57\) to grow to \($290.30\) in 18...
Study smarter with the SolutionInn App