ONE acquired 60% of the shares of TWO on the 1 of January 20X9 for an...
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ONE acquired 60% of the shares of TWO on the 1" of January 20X9 for an amount of 1,600,000.00 EUR. Condensed balance sheets of both aforementioned companies on the 31" of December 2009 (the closing date of the accounting year for both companies) are as follows: Property, plant and equipment (net) Investment in Two Inventories. Trade receivables Cash Total assets Share capital Retained profits Profit for the year Long term debt Current payables Total equity and liabilities Additional information: One 2,500,000 1,600,000 550,000 345,000 • Trade receivables • Cash Two 1,250,000 460,000 420,000 56,000 45,000 5,051,000 2,175,000 750,000 500,000 100,000 3,500,000 201,000 5,051,000 750,000 250,000 60,000 900,000 215,000 2,175,000 Both balance sheets are stated in EUR; • ONE still has to pay an invoice for an amount of 65,000.00 EUR for services rendered by TWO; • TWO owns a license that is not reflected in its balance sheet. The fair value of the license amounts to 25,000.00 EUR. REQUIRED Determine the balances on the 31 of December 20x9 for the following items in the balance sheet of the group financial statements. ONE acquired 60% of the shares of TWO on the 1" of January 20X9 for an amount of 1,600,000.00 EUR. Condensed balance sheets of both aforementioned companies on the 31" of December 2009 (the closing date of the accounting year for both companies) are as follows: Property, plant and equipment (net) Investment in Two Inventories. Trade receivables Cash Total assets Share capital Retained profits Profit for the year Long term debt Current payables Total equity and liabilities Additional information: One 2,500,000 1,600,000 550,000 345,000 • Trade receivables • Cash Two 1,250,000 460,000 420,000 56,000 45,000 5,051,000 2,175,000 750,000 500,000 100,000 3,500,000 201,000 5,051,000 750,000 250,000 60,000 900,000 215,000 2,175,000 Both balance sheets are stated in EUR; • ONE still has to pay an invoice for an amount of 65,000.00 EUR for services rendered by TWO; • TWO owns a license that is not reflected in its balance sheet. The fair value of the license amounts to 25,000.00 EUR. REQUIRED Determine the balances on the 31 of December 20x9 for the following items in the balance sheet of the group financial statements.
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Related Book For
Modern Advanced Accounting in Canada
ISBN: 978-1259087554
7th edition
Authors: Hilton Murray, Herauf Darrell
Posted Date:
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