Prepare acquisition analysis and the consolidation journal entry as of the date of acquisition.

Prepare the consolidated statement of financial position as of 1 July 20X0 (immediately after acquisition).

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Joplin Ltd acquired 100% of the issued capital of Hendrix Ltd on 1 July 20X0 for $290 000. The statements of financial position of the companies immediately after the acquisition were as follows (all assets stated at their fair values): Statements of Financial Position for the year ended 1 July 20X0 Joplin Ltd Hendrix Ltd $ $ Shareholders' equity Share capital 400 000 200 000 General reserve 40 000 20 000 Retained earnings 120 000 30 000 Total shareholders' equity 560 000 250 000 Assets Current assets 130 000 55 000 Investment in D Ltd 290 000 Other non-current assets 455 000 310 000 Total assets 875 000 365 000 Liabilities Current liabilities 145 000 35 000 Non-current liabilities 170 000 80 000 Total liabilities 315 000 115 000 560 000 250 000 Net assets Joplin Ltd acquired 100% of the issued capital of Hendrix Ltd on 1 July 20X0 for $290 000. The statements of financial position of the companies immediately after the acquisition were as follows (all assets stated at their fair values): Statements of Financial Position for the year ended 1 July 20X0 Joplin Ltd Hendrix Ltd $ $ Shareholders' equity Share capital 400 000 200 000 General reserve 40 000 20 000 Retained earnings 120 000 30 000 Total shareholders' equity 560 000 250 000 Assets Current assets 130 000 55 000 Investment in D Ltd 290 000 Other non-current assets 455 000 310 000 Total assets 875 000 365 000 Liabilities Current liabilities 145 000 35 000 Non-current liabilities 170 000 80 000 Total liabilities 315 000 115 000 560 000 250 000 Net assets

Answer rating: 100% (QA)

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