Data adjustments

Prepare a consolidation journal entry to adjust the data for each of the following independent situations. Assume the

financial year ends on $30$ June in each case.

$($a$)$ On $12$ June, a wholly owned subsidiary announced a dividend from pre$-$control equity, but will not record it until the

payment date in July. The parent recorded the dividend at the announcement date. AASB $12738$A is applicable.

$($b$)$ Parent paid $$45000$ on $30$ June for all the shares of Subsidiary, whose equity at that date is share capital $$36000$ and

retained profits $$12000.$ However, assets of Subsidiary are not all recorded at their fair value. The discrepancies are:Data adjustments

Prepare a consolidation journal entry to adjust the data for each of the following independent situations. Assume the

financial year ends on $30$ June in each case.

$($a$)$ On $12$ June, a wholly owned subsidiary announced a dividend from pre$-$control equity, but will not record it until the

payment date in July. The parent recorded the dividend at the announcement date. AASB $12738$A is applicable.

$($b$)$ Parent paid $$45000$ on $30$ June for all the shares of Subsidiary, whose equity at that date is share capital $$36000$ and

retained profits $$12000.$ However, assets of Subsidiary are not all recorded at their fair value. The discrepancies are:

$($c$)$ Subsidiary has made a loan of $$80000$ to Parent, repayable in five years. The annual loan interest is $12\%$ payable each quarter on the twentieth day of September, December, March and June. Interest for the latest quarter is due for payment, and has been recorded by Subsidiary as a receivable but has not been recorded by Parent.$($d$)$ Subsidiary X sold goods to Subsidiary Z on credit for $$53000.$ Subsidiary X recorded this transaction on shipment on $27$ June $20$X$5.$ By $30$ June, Subsidiary Z had not received the goods or recorded the transaction.$($e$)$ Parent applies a $45\%$ accelerated depreciation to its PC computers, and requires this policy to be applied also in the consolidation. Subsidiary, however, has applied straight$-$line depreciation to its PC computers. Subsidiary$$s computers are all two years old at $30$ June, and their cost was $$153000.$ Expectations at purchase were that the PCs have a useful life of three years and no residual value.