Additional information: Salah $ Robertson $ Revenues 840 000 520 000 Expenses (630 000) (400 000) Net
Question:
Additional information:
Salah $ | Robertson $ | |
Revenues | 840 000 | 520 000 |
Expenses | (630 000) | (400 000) |
Net profit before tax | 210 000 | 120 000 |
Income tax expense | (72 000) | (43 000) |
Net profit after tax | 138 000 | 77 000 |
Retained earnings 1 July 2019 | 190 000 | 140 000 |
328 000 | 217 000 | |
Dividend declared | (65 000) | (22 000) |
Transfer to general reserve | (18 000) | (14 000) |
Retained earnings 30 June 2020 | 245 000 | 181 000 |
Share capital | 610 000 | 300 000 |
General reserve | 51 000 | 62 000 |
Asset revaluation reserve | 12 000 | 7 000 |
Accounts payable | 43 000 | 15 000 |
Advance from Salah Ltd | – | 75 000 |
Other liabilities | 36 000 | 31 000 |
TOTAL EQUITY AND LIABILITIES | 997 000 | 671 000 |
Cash | 180 000 | 160 000 |
Accounts receivable | 32 000 | 58 000 |
Prepayment | 26 000 | 29 000 |
Inventory | 99 000 | 100 000 |
Advance to Robertson Ltd | 75 000 | – |
Investment in Robertson Ltd | 434 000 | – |
Non-current assets | 151 000 | 324 000 |
TOTAL ASSETS | 997 000 | 671 000 |
Required:
Prepare the consolidation journal entries for the Salah Ltd group for the year ended 30 June 2020. (Acquisition Analysis, BCVR Journal Entries, Pre Acquisition Journal Entries, Intra Group Journal Entries)
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson