Question: On 1 July 2023, Gordon Ltd acquired all the issued shares (cum div.) of Henry Ltd for $528000. At that date, the financial statements of

On 1 July 2023, Gordon Ltd acquired all the issued shares (cum div.) of Henry Ltd for $528000. At that date, the financial statements of Henry Ltd showed the following information. Share capital 220000 General reserve 110000 Retained earnings 154000 Dividend payable 44000 All the assets and liabilities of Gordon Ltd were recorded at amounts equal to their fair values at the acquisition date. The dividend payable reported at 1 July 2023 by Henry Ltd was paid on 15 August 2023. Henry Ltd paid a further dividend of $55000 on 2 February 2024 from post-acquisition profits. 3. Prepare the consolidation worksheet entries for Gordon Ltd's group at 30 June 2024. (3 Marks) 4. How would the entries for 2 and 3 above change if the shares were bought on an ex dividend basis? (5 Marks)

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