Given below are the statements of financial position of May and Park as at 31 December...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Given below are the statements of financial position of May and Park as at 31 December x7. May RM'000 800 Park RM'000 700,000 Ordinary shares 150,000 Ordinary shares 100,000 Redeemable preference shares Retained profit 1 January x7 Profit for the year 10% debentures 230 100 50 40 30 50 100 510 890 Investments in Park at cost -Ordinary shares -Redeemable preference shares -RM45,000 10% debentures Sundry net assets 135 30 45 680 890 510 510 Additional information: a) May acquired the shares and debentures in Park on 1 January x7. The consideration transferred was as follows: Financial assets acquired Consideration Cash Ordinary shares in May RM 135,000 135,000 ordinary shares 30,000 preference shares RM45,000 10% debentures 33,000 shares-market value RM3 each 30,000 45,000 May has only recorded the cash paid to acquire the securities. b) On 1 January x7, May recognised an intangible asset (other than goodwill) in Park and the fair value of which was RM40,000. The estimated economic life of the asset was four years. Park has not recorded it. Ignore deferred tax. c) As at year-end, provision or the year's dividends on preference shares and second half- year's debenture interest have not been provided by Park. Preference dividends accrued are RM10,000. Required: Prepare the consolidated statement of financial position as at 31 December x7. Given below are the statements of financial position of May and Park as at 31 December x7. May RM'000 800 Park RM'000 700,000 Ordinary shares 150,000 Ordinary shares 100,000 Redeemable preference shares Retained profit 1 January x7 Profit for the year 10% debentures 230 100 50 40 30 50 100 510 890 Investments in Park at cost -Ordinary shares -Redeemable preference shares -RM45,000 10% debentures Sundry net assets 135 30 45 680 890 510 510 Additional information: a) May acquired the shares and debentures in Park on 1 January x7. The consideration transferred was as follows: Financial assets acquired Consideration Cash Ordinary shares in May RM 135,000 135,000 ordinary shares 30,000 preference shares RM45,000 10% debentures 33,000 shares-market value RM3 each 30,000 45,000 May has only recorded the cash paid to acquire the securities. b) On 1 January x7, May recognised an intangible asset (other than goodwill) in Park and the fair value of which was RM40,000. The estimated economic life of the asset was four years. Park has not recorded it. Ignore deferred tax. c) As at year-end, provision or the year's dividends on preference shares and second half- year's debenture interest have not been provided by Park. Preference dividends accrued are RM10,000. Required: Prepare the consolidated statement of financial position as at 31 December x7.
Expert Answer:
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
Posted Date:
Students also viewed these accounting questions
-
The following are the statements of financial position of Garden plc, its subsidiary Rose Ltd and its associate Petal Ltd: On 1 January 20X3 Garden plc acquired 75% of Rose Ltd for £300,000...
-
The following are the statements of financial position of two companies at 31 October 2018, the end of their most recent financial years: The following additional information is available: 1). On 1...
-
The following are the statements of financial position as at 30 June 2020: Phi Berhad RM000 Saw S/B RM000 Investment in Saw Sdn Bhd: Ordinary shares Preference shares 4,000 80 Land 19,280 5,665...
-
Describe the Economic Analysis of the Valero Energy Corporation. Demonstrate Valero Energy Corporation is susceptible to Macroeconomic outlook both in the U.S.& foreign markets
-
When anthracene is added to the reaction of chlorobenzene with concentrated NaOH at 350 C, an interesting Diels-Alder adduct of formula C20H14 results. The proton NMR spectrum of the product shows a...
-
Lengths of pregnancies are normally distributed with a mean of 268 days and a standard deviation of 15 days. a. What is the percentage of pregnancies that last less than 250 days? b. What is the...
-
Two key performance indicators for a company are profitability and solvency. Why are these so important? Is the value of accrual accounting more evident when centered on profitability or solvency?
-
Peach Corporation (a calendar year company) recorded the following transactions. Taxable income ...................... $5,000,000 Regular tax depreciation on realty in excess of ADS (placed in...
-
What is the output of the following C code? 1 #include 2 3 void xMethod(int n) { 5 } 676945 8 10 11 printf("%d",n+1); void xMethod(double n) { printf("%f",n+2); } void xMethod(long n) { 12 13. } 14...
-
On July 1, the ABC Partnership, a calendar-year partnership, distributes to each of its equal partners $10,000 cash and land with a value of $10,000 and a basis of $5,000. A, B and C have outside...
-
Alex is from Australia and enjoys talking about investments to their friend Jordan. Alex became an enthusiastic investor in Australian equities in 2020, and they would often brag to Jordan about the...
-
Graph the first-degree inequalities in two unknowns in Problems 13-48. \(y \leq \frac{2}{3} x-\frac{3}{100}\)
-
Graph the first-degree inequalities in two unknowns in Problems 13-48. \(3 x+2 y-3>1\)
-
Graph the first-degree inequalities in two unknowns in Problems 13-48. \(x \leq 0\)
-
Graph the first-degree inequalities in two unknowns in Problems 13-48. \(3 x \geq 5 y\)
-
Sketch the curves using the equations given in Problems 28-51. \(x^{2}+y^{2}=250\)
-
Assume that people will spend $0.60 of every extra dollar they earn. Further assume that the real interest rate decreases, and this causes gross private investment to increase by $75 billion....
-
To balance the chemical equation SiH3 + O2 SiO2 + HO, you could introduce coefficients a, b, c, d and write aSiH3 + bO2 cSiO + dHO then write linear equations for each element. The equation for Si...
-
On 1 January 20X0 Hill plc purchased 70% of the ordinary shares of Valley plc for £1.3 million. The fair value of the non-controlling interest at that date was £0.5 million. At the date...
-
The capital structure of Chavboro, a quoted company, during the years ended 31 October 2005 and 2006 was as follows: $ 6,000,000 ordinary shares of 50 cents ... 3,000,000 10% preferred shares of $1...
-
(a) Discuss why IAS 40 Investment Property was produced. (b) Universal Entrepreneurs plc has the following items on its PPE list: (i) 1,000,000 the right to extract sandstone from a particular...
-
Two radio stations have the same power output from their antennas. One broadcasts AM at a frequency of \(1000 \mathrm{kHz}\) and one broadcasts FM at a frequency of \(100 \mathrm{MHz}\). Which...
-
A paramecium is covered with motile hairs called cilia that propel it at a speed of \(1 \mathrm{~mm} / \mathrm{s}\). If the paramecium has a volume of \(2 \times 10^{-13} \mathrm{~m}^{3}\) and a...
-
Photon P in Figure Q28.35 moves an electron from energy level \(n=1\) to energy level \(n=3\). The electron jumps down to \(n=2\), emitting photon \(\mathrm{Q}\), and then jumps down to \(n=1\),...
Study smarter with the SolutionInn App