SYDNEY Ltd acquired a 40% interest in PERTH Ltd for $ 120,000 on 1 July 2020....

Transcribed Image Text:

SYDNEY Ltd acquired a 40% interest in PERTH Ltd for $ 120,000 on 1 July 2020. The equity of PERTH Ltd at the acquisition date was: Share capital Retained earnings All the identifiable assets and liabilities of PERTH Ltd. were recorded at fair value. Profits and dividends for the years ended 30 June 2021 to 2022 were as follows: Question 19 Year 2021 2022 $ 200,000 $ 100,000 $ 300,000 Profit/Loss for the year $ 50,000 (20,000) Dividends paid $ 30,000 10,000 Required: Prepare the consolidation worksheet entries to account for SYDNEY Ltd's interest in the associated, PERTH Ltd. for final year ended 30 June 2021 and 2022. (Notes: SYDNEY Ltd is a parent company.). SYDNEY Ltd acquired a 40% interest in PERTH Ltd for $ 120,000 on 1 July 2020. The equity of PERTH Ltd at the acquisition date was: Share capital Retained earnings All the identifiable assets and liabilities of PERTH Ltd. were recorded at fair value. Profits and dividends for the years ended 30 June 2021 to 2022 were as follows: Question 19 Year 2021 2022 $ 200,000 $ 100,000 $ 300,000 Profit/Loss for the year $ 50,000 (20,000) Dividends paid $ 30,000 10,000 Required: Prepare the consolidation worksheet entries to account for SYDNEY Ltd's interest in the associated, PERTH Ltd. for final year ended 30 June 2021 and 2022. (Notes: SYDNEY Ltd is a parent company.).

Answer rating: 100% (QA)

Year Ended 30 June 2021 Eliminating the equity balances at the acquisition date Share Capital 200000 ... View the full answer