Example 1 P Co acquired 75% of the ordinary shares of S Co on that company's...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Example 1 P Co acquired 75% of the ordinary shares of S Co on that company's incorporation in 20X3. The summarised statements of profit or loss and movement on retained earnings of the two companies for the year ending 31 December 20X6 are set out below. Sales revenue Cost of sales Gross profit Administrative expenses Profit before tax Income tax expense profit for the year Note: Movement on retained earnings Retained earnings brought forward Profit for the year Retained earnings carried forward P Co $ $ 38,000 75,000 (30,000) (20,000) 45,000 18,000 (14,000) (8,000) 31,000 10,000 (10,000) (2,000) 21,000 8,000 S Co 87,000 21,000 108,000 17,000 8,000 25,000 Required Prepare the consolidated statement of profit or loss and extract from the statement of changes in equity showing retained earnings and non-controlling interest. Example 1 P Co acquired 75% of the ordinary shares of S Co on that company's incorporation in 20X3. The summarised statements of profit or loss and movement on retained earnings of the two companies for the year ending 31 December 20X6 are set out below. Sales revenue Cost of sales Gross profit Administrative expenses Profit before tax Income tax expense profit for the year Note: Movement on retained earnings Retained earnings brought forward Profit for the year Retained earnings carried forward P Co $ $ 38,000 75,000 (30,000) (20,000) 45,000 18,000 (14,000) (8,000) 31,000 10,000 (10,000) (2,000) 21,000 8,000 S Co 87,000 21,000 108,000 17,000 8,000 25,000 Required Prepare the consolidated statement of profit or loss and extract from the statement of changes in equity showing retained earnings and non-controlling interest.
Expert Answer:
Answer rating: 100% (QA)
Step 12 Answer is as follow Answer Consolidated Stat... View the full answer
Related Book For
Financial Accounting and Reporting
ISBN: 978-1292162409
18th edition
Authors: Barry Elliott, Jamie Elliott
Posted Date:
Students also viewed these accounting questions
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
The following are the condensed statements of financial position of P Ltd and subsidiary at 30 June 2021, the date on which P Ltd acquired the interest in S Ltd: STATEMENT OF FINANCIAL POSITION AS AT...
-
The financial statements of JJ Ltd and KK Ltd for the year to 30 June 2018 are shown below: Statements of comprehensive income for the year to 30 June 2018. Statements of financial position as at 30...
-
Oliver owns Wifit, an unincorporated sports store. Wifit earned $100,000 before Oliver drew out a salary of $60,000. What is Oliver's deduction for self-employment taxes? Group of answer choices A....
-
Richfield Honda had the following data for the years operations: Sales of vehicles .. $3,100,000 Sales of parts and service . 500,000 Cost of vehicle sales . 2,480,000 Parts and service materials ...
-
In Problems 5166, find each indicated quantity if it exists. Let f(x) = (1-x [1 + x (A) lim f(x) x-0 (C) lim f(x) if x 0 if x > 0 . Find (B) lim f(x) x-0 (D) f(0)
-
French and Schultz ("Water Use Efficiency of Wheat in a Mediterranean-type Environment, I The Relation between Yield, Water Use, and Climate," Australian Journal of Agricultural Research, 35, 743-64)...
-
Epstein Engineering Inc. began operations on January 5, 2014, with the issuance of 500,000 shares of $80 par common stock . The sole stockholders of Epstein Engineering Inc. are Barb Abrams and Dr....
-
a. Journalize, record, and post the following transactions as needed to the sales, purchases, cash receipts, cash payments, and general journals. All terms are 2/10, n/30 on both sales and purchases....
-
The diagram shows an equilateral triangle, PQR, with side length 5cm. M is the midpoint of the line QR. An arc of a circle, centre P, touches QR at M and meets PQ at X and PR at Y. Find in terms of ...
-
How do B-to-B transactions help with Supply Chain management?
-
Frequent informal meetings, surprise visits, and blogs are ways of overcoming _ _ _ _ _ _ . a . organizational silence b . discussion channels c . the bystander effect d . destructive feedback
-
Kendall, a real estate sales manager at Crawford Corp., sends all her subordinates a memo that explains the importance of real estate. In this case, Kendall is engaged in _ _ _ _ _ . a ....
-
1. (1 point) Given debt and equity value figure, draw firm value. FIGURE A FIGURE B DEBT VALUE ($MILLION) 1 2 3 4 1.5 0.5 0 0.3 -0.3 0.6 -0.6 0.5 1.5 COMPANY CASHFLOW ($MILLION) RE 2 = EQUITY VALUE...
-
Identify some basic issues managers must confront when attempting to motivate employees in different cultures. Provide an example and be specific.
-
Product-design problems arise due to changing competitor coming up with a better product. a) Customer needs b) Owner needs c) Manager needs d) Supplier needs
-
Tiggie's Dog Toys, Inc. reported a debt to-equity ratio of 1.66 times at the end of 2015. If the firm's total debt at year-end was $34 million, how much equity does Tiggie's have on its balance sheet?
-
Explain the term global capital markets. This chapter primarily discusses global equity markets. What other types of financial instruments are traded in these markets? How important are global...
-
The FRC in its 2009 publication Louder than Words - Principles and Actions for Making Corporate Reports Less Complex and More Relevant included a call for action to 'Ensure disclosure requirements...
-
Delta owned two assets which were sold on 1 April 20X1 - the first day of Delta's accounting period. Both assets were sold for their fair value. Details of the sales are as follows: Asset 1 Asset 1...
-
Procter Limited, a UK private company has the following financial assets and liabilities in the accounts: (i) An equity investment in Milner plc, a UK listed company. Procter recognizes the...
-
Draw a timing diagram for a burst write operation that writes four locations.
-
Draw a UML sequence diagram for a burst read operation with wait states.
-
Draw a UML state diagram for a burst read operation with wait states. One state diagram is for the bus master and the other is for the device being read.
Study smarter with the SolutionInn App