The following are the abridged Financial Statements of Pie, Tie and its associate, Lie Ltd, for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following are the abridged Financial Statements of Pie, Tie and its associate, Lie Ltd, for the year ended 30 June 2021. Pie Ltd Tie Ltd Lie Ltd R R Net operating income 200 000 100 000 80 000 Dividends received 12 000 4 000 212 000 104 000 80 000 Тахation (100 000) (50 000) (40 000) Net income for the year 112 000 54 000 40 000 Dividends paid (32 000) (20 000) (10 000) Transfer to general reserve (20 000) (10 000) Retained income for the year 60 000 34 000 20 000 Retained income beginning of year 140 000 126 000 90 000 Retained income end of year 200 000 160 000 110 000 Statement of Financial Position as at 30 June 2021 Pie Ltd Tie Ltd Lie Ltd R R R Non- current assets Fixed assets 180 000 150 000 100 000 Investments in Tie Ltd 60 000 Investments in Lie Ltd 30 000 Net current assets 140 000 140 000 100 000 380 000 320 000 200 000 Share Capital – ordinary R1 shares 100 000 100 000 50 000 Retained income for the year 200 000 160 000 110 000 General Reserve 80 000 60 000 40 000 Retained income end of year 380 000 320 000 200 000 Tie Ltd acquired a 40% interest in Lie Ltd on 1 January 2016 for R30 000 at which date Lie Ltd's retained income amounted to R20 000 with no general reserve. The taxation rate for the year amounted to 50%. Pie Ltd acquired a 60% interest in Tie Ltd on the date of incorporation of Tie Ltd. Tie Ltd was incorporated on 1 August 2015. Required: Prepare the consolidated statement of comprehensive income and the statement of financial position of Pie Ltd and its subsidiary for the year ended 30 June 2021. The group accounts for its investments in its associate on the equity method. The following are the abridged Financial Statements of Pie, Tie and its associate, Lie Ltd, for the year ended 30 June 2021. Pie Ltd Tie Ltd Lie Ltd R R Net operating income 200 000 100 000 80 000 Dividends received 12 000 4 000 212 000 104 000 80 000 Тахation (100 000) (50 000) (40 000) Net income for the year 112 000 54 000 40 000 Dividends paid (32 000) (20 000) (10 000) Transfer to general reserve (20 000) (10 000) Retained income for the year 60 000 34 000 20 000 Retained income beginning of year 140 000 126 000 90 000 Retained income end of year 200 000 160 000 110 000 Statement of Financial Position as at 30 June 2021 Pie Ltd Tie Ltd Lie Ltd R R R Non- current assets Fixed assets 180 000 150 000 100 000 Investments in Tie Ltd 60 000 Investments in Lie Ltd 30 000 Net current assets 140 000 140 000 100 000 380 000 320 000 200 000 Share Capital – ordinary R1 shares 100 000 100 000 50 000 Retained income for the year 200 000 160 000 110 000 General Reserve 80 000 60 000 40 000 Retained income end of year 380 000 320 000 200 000 Tie Ltd acquired a 40% interest in Lie Ltd on 1 January 2016 for R30 000 at which date Lie Ltd's retained income amounted to R20 000 with no general reserve. The taxation rate for the year amounted to 50%. Pie Ltd acquired a 60% interest in Tie Ltd on the date of incorporation of Tie Ltd. Tie Ltd was incorporated on 1 August 2015. Required: Prepare the consolidated statement of comprehensive income and the statement of financial position of Pie Ltd and its subsidiary for the year ended 30 June 2021. The group accounts for its investments in its associate on the equity method.
Expert Answer:
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
Posted Date:
Students also viewed these accounting questions
-
For the year ended 30 June 2018, the business income and expenses for APC Restaurant are shown in the following Profit & Loss Statement that was prepared under cash basis: Peter also provides you...
-
The fixed budget performance report for the year ended 30 June 2018 for Motueka Mint is as follows: Budget Actual Variance Units of production: 84 000 94 000 10 000 F Factory overhead: Variable...
-
Toms depreciation schedule for the year ended 30 June is set out below All assets have a 100 per cent business use and he uses the diminishing value method All depreciating assets were acquired after...
-
3. Given the recurrence relation: Calculate T(n) for n= 1.2.3.4.5. 12 T(n) T(n)= 3T ([n/2])+ 2m +1 T(0) 0 1 2 3 4 5 [10 pts
-
What makes the demand for some goods elastic and the demand for other goods inelastic?
-
Compare and contrast the differences between the following services that an auditor may provideaudit, attest, review, and compilation. Comment on the scope, work performed, level of assurance...
-
On April 20, 1992, Daniel Hubbard (plaintiff), a potato farmer, and UTZ Quality Foods, Inc. (UTZ) (defendant), a potato chip manufacturer, entered an installment contract under which Hubbard agreed...
-
Data for Morton Chip Company and its industry averages follow. a. Calculate the indicated ratios for Morton. b. Construct the extended Du Pont equation for both Morton and the industry. c. Outline...
-
ELLA'S ELECTRONICS ACCOUNTING PROJECT PART 2Adjusting InformationAt the end of February, the following information is determined:a. One month of the business insurance coverage has expired.b. At the...
-
For the case The WM. Wrigley Jr. Company: Capital Structure, Valuation, and the Cost of Capital(Darden Case: UVAF1482) please answer the following questions and explain your reasoningwhere...
-
Fareeha is a sole trader who is setting up 'Fareeha Muslimah Collection' (FMC) to sell decent attire purchased from a local factory at RM40 from a shop in Kelantan. Fareeha estimates that the...
-
Reflect on The Scream' by Kent Monkman: What might lawful Indigenous child apprehension teach us about the rule of order in Canada?
-
You are asked by your Chief Financial Officer to help develop the financial statements for a recently created cryptocurrency corporation on January 1, 2023. Prepare a 1-2-page document indicating how...
-
A measure of a system's disorder or how much the energy has dispersed within the system a) entropy b) heat c) potential energy d) kinetic energy
-
Learning Assignment: Understanding values, norms and behaviors shows us how deeply connected we are to the organizational culture. Our decisions-making processes must take into account dominant ideas...
-
"What are the specific anatomical terms used to refer to the miniature claws and the larger claws in crayfish?"
-
Please read " E - commerce & Cyberlaw" of the text: Google in the Jury Room. A current problem with jurors is their "Googling" to get information. For example, in a public corruption trial, a juror...
-
At Glass Company, materials are added at the beginning of the process and conversion costs are added uniformly. Work in process, beginning: Number of units Transferred - in costs Direct materials...
-
Charles plc is applying IAS 32 and IAS 39 for the first time this year and is uncertain about the application of the standard. Charles plc balance sheet is as follows: Note 1. The forward contracts...
-
(a) Measurement in financial statements, Chapter 6 of the ASBs Statement of Principles, was published in 1999. Amongst the theoretical valuation systems considered is value in use more commonly...
-
The finance director of Toy plc has been asked by a shareholder to explain items that appear in the current cost statement of comprehensive income for the year ended 31.8.20X9 and the statement of...
-
The deletion rules for enforcing referential integrity include both Delete. Cascade and Delete Restrict In general, what criteria should a DBA use in deciding whether to use a Delete: Cascade or...
-
What is metadata? if database administrators need to define metadata, what kind of language should they use (DDL or DML)? Why?
-
What is a relational database?
Study smarter with the SolutionInn App