Required:Part A $-$ ?Consolidation Question

On $\frac{01}{07}/2021,$ ?S forzando Ltd acquired $100\%$ ?of the issued shares of Fortepiano Ltd for: At the date of acquisition, the Owners' Equity of Fortepiano Ltd consisted of:

Share capital

General Reserve

Retained earnings

The accounts of the two companies appear as at $\frac{30}{06}/2023$ ?are as follows:

$($i$)$ ?Prepare the acquisition analysis at the date of acquisition.

$($ii$)$ ?Record the consolidated journal entries necessary to prepare consolidated accounts for the year ending

$30/06/2023$ ?for the group comprising Tie Ltd and Legato Ltd$.$

$($iii$)$ ?Complete the consolidated worksheet for the year ending

$-$ ?Entering the consolidated journal entries in Part $($ii$)$ ?above to the appropriate debit and credit

columns in the Consolidated Worksheet; and

$-$ ?Clearly labelling the references for each of the adjustments in the Consolidated Worksheet; and

$-$ ?Completing the Group figures in the Consolidated Worksheet

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Part A - Consolidation Question On 01/07/2021, Sforzando Ltd acquired 100% of the issued shares of Fortepiano Ltd for: At the date of acquisition, the Owners' Equity of Fortepiano Ltd consisted of: Share capital General Reserve Retained earnings $4,056,000 $1,825,200 $456,300 $342,180 $2,623,680 The accounts of the two companies appear as at 30/06/2023 are as follows: Sales less Cost of Goods Sold Depreciation expense Interest expense Other expenses Other Income plus Interest revenue Dividend revenue Sforzando Ltd $ Fortepiano Ltd $ 6,490,000 3,270,600 3,894,000 2,125,800 324,500 163,500 259,600 608,300 63,840 138,760 95,700 0 354,900 0 less Income tax expense 556,200 233,600 Net Profit after Tax 1,298,000 545,100 Retained earnings (01/07/2022) 1,946,800 570,300 Available for appropriation 3,244,800 1,115,400 Interim dividend paid 304,200 152,100 Final dividend declared 507,000 202,800 Retained earnings (30/06/2023) 2,433,600 760,500 Share Capital 5,272,800 1,825,200 General Reserve 405,600 456,300 Total Owner's Equity 8,112,000 3,042,000 Loan payable (due 30/06/2025) 0 608,000 Dividend payable 507,000 202,800 Deferred Tax Liability 608,400 50,700 Other liabilities 912,600 152,500 Total Liabilities 2,028,000 1,014,000 Total Liabilities & Owner's Equity 10,140,000 4,056,000 Assets Dividend receivable 202,800 0 Inventory 1,419,600 243,300 Property, Plant & Equipment 2,737,800 1,622,400 Accumulated depreciation -1,095,200 -324,500 Land 1,723,800 1,622,400 Investment in Fortepiano Ltd 4,056,000 0 Loan receivable 608,000 0 Other assets Total Assets 487,200 892,400 10,140,000 4,056,000 Part A - Consolidation Question On 01/07/2021, Sforzando Ltd acquired 100% of the issued shares of Fortepiano Ltd for: At the date of acquisition, the Owners' Equity of Fortepiano Ltd consisted of: Share capital General Reserve Retained earnings $4,056,000 $1,825,200 $456,300 $342,180 $2,623,680 The accounts of the two companies appear as at 30/06/2023 are as follows: Sales less Cost of Goods Sold Depreciation expense Interest expense Other expenses Other Income plus Interest revenue Dividend revenue Sforzando Ltd $ Fortepiano Ltd $ 6,490,000 3,270,600 3,894,000 2,125,800 324,500 163,500 259,600 608,300 63,840 138,760 95,700 0 354,900 0 less Income tax expense 556,200 233,600 Net Profit after Tax 1,298,000 545,100 Retained earnings (01/07/2022) 1,946,800 570,300 Available for appropriation 3,244,800 1,115,400 Interim dividend paid 304,200 152,100 Final dividend declared 507,000 202,800 Retained earnings (30/06/2023) 2,433,600 760,500 Share Capital 5,272,800 1,825,200 General Reserve 405,600 456,300 Total Owner's Equity 8,112,000 3,042,000 Loan payable (due 30/06/2025) 0 608,000 Dividend payable 507,000 202,800 Deferred Tax Liability 608,400 50,700 Other liabilities 912,600 152,500 Total Liabilities 2,028,000 1,014,000 Total Liabilities & Owner's Equity 10,140,000 4,056,000 Assets Dividend receivable 202,800 0 Inventory 1,419,600 243,300 Property, Plant & Equipment 2,737,800 1,622,400 Accumulated depreciation -1,095,200 -324,500 Land 1,723,800 1,622,400 Investment in Fortepiano Ltd 4,056,000 0 Loan receivable 608,000 0 Other assets Total Assets 487,200 892,400 10,140,000 4,056,000

Answer rating: 100% (QA)

Part Ai Acquisition Analysis Owners Equity of Fortepiano Ltd at acquisition date Share capital 1825200 General reserve 456300 Retained earnings 570300 ... View the full answer