$20 Bonus + 25% OFF
$20 Bonus + 25% OFF
Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!
Add File

Error goes here

MPA105 Financial Accounting And Reporting

tag 0 Download7 Pages / 1,736 Words tag Add in library Click this icon and make it bookmark in your library to refer it later. GOT IT

Question:

On 1 July 2016, Sisters Ltd acquired all of the issued shares of Brothers Ltd for $950 000.  At the acquisition date the equity of Brothers Ltd consisted of:

Share capital

$600 000

Reserves

  120 000

Retained earnings

  150 000

At the date of acquisition this equity reflected the fair values of all the identifiable assets and liabilities of Brothers Ltd.

The following transaction occurred between the two entities during the financial year: 

. On 1 July 2016 Brothers Ltd sold a motor vehicle to Sisters Ltd for $900 000. The motor vehicle had cost Brothers Ltd $1 500 000. It had been used for 5 years and had a carrying amount of $800 000 on Brothers Ltd.’s accounting book on the date of sale. The motor vehicle is recorded under the cost model and the straight-line depreciation method is used by both companies. The remaining useful life of the motor vehicle was estimated to be 5 years.

At 30 June 2017 the directors of Sisters Ltd estimated that purchased goodwill had been impaired by $10 000.

The corporate tax rate is 30%.

The financial statements of Sisters Ltd and Brothers Ltd at 30 June 2017 provided the following information:

 

Sisters Ltd ($000)

Brothers Ltd ($000)

 

Reconciliation of opening and closing retained earnings

 

 

 

 

Sales revenue

30 000 

2 200

 

less Cost of goods sold

(14 000)

( 550)

 

Gross profit

16 000 

1 650 

 

Other income

 

 

 

Gain on sale of fixed asset

 

6 000 

 100

 

                                                                                           

 

 

 

Expenses

 

 

 

Depreciation

(2 000) 

 (400)

 

Other expenses

   (3 800)

(200)

 

Profit before tax

16 200 

1 150 

 

Tax expense (30 % Tax Rate)

   (4 860)

 (345)

 

Profit after tax

11 340

805 

 

Retained earnings—1 July 2016

    6 000 

150 

 

Retained earnings—30 June 2017

 

 

 

17 340

 955

 

 

Sisters Ltd ($000)

Brothers Ltd ($000)

 

 

Statement of financial position

 

 

 

Shareholders’ equity

 

 

Retained earnings - 30 June 2017

17 340

955

Share capital

Reserves

10 000

-

600

120

 

Current liabilities

 

 

 

Tax payable

 

5 600

20

Non-current liabilities

 

 

 

Loans

   4 000

 750

 

36 940

2 445

Current assets

 

 

Cash

Accounts receivable

5 000

7 500

800

335

Inventory/stock

 

6 200

520

Non-current assets

 

 

Land

14 290

320

Vehicles, at cost

3 450

500

Vehicle—accumulated depreciation

(450)

(30)

Investment in Brothers Ltd

   950

       –

 

36 940

2 445

 

 

 

           

Required

Provide the consolidated worksheet of Sisters Ltd and its controlled entity (Brothers Ltd) for the year ended 30 June 2017.

Note: for each of the journal entry you are required to provide an explanation as to why the entry is necessary.

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2020). Financial Accounting And Reporting. Retrieved from https://myassignmenthelp.com/free-samples/mpa105-financial-accounting-and-reporting/value-of-assets-and-liabilities.html.

My Assignment Help (2020) Financial Accounting And Reporting [Online]. Available from: https://myassignmenthelp.com/free-samples/mpa105-financial-accounting-and-reporting/value-of-assets-and-liabilities.html
[Accessed 06 August 2021].

My Assignment Help. 'Financial Accounting And Reporting' (My Assignment Help, 2020) <https://myassignmenthelp.com/free-samples/mpa105-financial-accounting-and-reporting/value-of-assets-and-liabilities.html> accessed 06 August 2021.

My Assignment Help. Financial Accounting And Reporting [Internet]. My Assignment Help. 2020 [cited 06 August 2021]. Available from: https://myassignmenthelp.com/free-samples/mpa105-financial-accounting-and-reporting/value-of-assets-and-liabilities.html.


MyAssignmenthelp.com offers top-notch essay assignment help service. Prompt and customized solutions are the best feature of this portal. Assignment help is provided on different subjects in Canada. Customized help is rendered like proposal essay and mba essay help . Expert writers associated with this service also offer English essay, law essay and nursing essay help in Canada.

Latest Accounting Samples

ACC 231 Intermediate Accounting

Download : 0 | Pages : 3

Answer Introduction CPAs are required to make some of the key decisions of a business as CPAs now the smallest financial details of the business. CPAs have the capability to interpret and analyze the various financial aspects of a business like nobody else has. With the increased compliance requirements and growing complexities, the role of CPAs is becoming more and more important and CPAs are now required in almost all industries like spots,...

Read More arrow Tags: United Kingdom Oxford Accounting University of London 

HI6025 Accounting Theory And Current Issue

Download : 0 | Pages : 9

Answer: Introduction “Half a Defense of Positive Accounting Research” is a study conducted by Paul V Dunmore in 2009 for Massey University, New Zealand. This paper by Dunmore presents positive accounting is a wider intellect of a research aspects which intends to develop causal account of human behaviors with accounting backdrop. The aim of the current critique of the article by Dunmore is to evaluate the significance of this pape...

Read More arrow Tags: Australia Melbourne Management University of Melbourne Masters in Business Administration 

BUS5IAF Introduction To Accounting And Finance

Download : 0 | Pages : 9

Answer: Introduction The main aim of this report is to conduct research and analyze the performance or operation of the company. The report contains interpretation of data and summarization of findings for explaining the financial management of the company. The company selected for the analysis is Med Advisor. The company is engaged in improving health by connecting the medical professions with the patients. The purpose of the report is to pr...

Read More arrow

ACFI3009 Contemporary Accounting Issues

Download : 0 | Pages : 9

Answer: Introduction: Mark-to-market accounting has its own advantages and disadvantages. Where the assets and liabilities are valued at their current market price, it increases the borrowing and the lending of the banks as they are able to value their securities at the market price against their usual and traditional method of valuing their securities at cost price or purchase price. The Banks or the respective person records the assets and ...

Read More arrow Tags: Australia Lower Plenty Finance Financial Accounting  University of Queensland MBA 

ACCT4123 Advanced Management Accounting

Download : 0 | Page : 1

Answer: Solution a The new balance as in the end of march 2014 is Cash – 5231 Bank- 8230 The calculation are present in the excel sheet. Solution b Five possible causes that the bank statement balance does not agree with cash book are: 1.The cash book balance and bank book balance does not match due to the bank charges because such charges are recorded in the cash book after receiving the periodical bank statement.   2.Chequ...

Read More arrow
Next

Still in Two Minds? The Proof is in Numbers!

33845 Genuine Reviews With a Rating of 4.9/5.

student rating student rating student rating student rating student rating
19 Jul 2021

Mechanical Engineering

Assignment: 8 Pages, Deadline: 8 days

Passed my subject because of you. Thank you........................................................................

flag User ID: 2***76 Sydney, Australia

student rating student rating student rating student rating student rating
19 Jul 2021

Healthcare

Essay: 1 Page, Deadline: 17 days

Instructors comments on marking :



The depression rate has been increased by 31% among teenagers in America as a consequence of the excessive us ...

flag User ID: 6***41 Campbell River, Canada

student rating student rating student rating student rating student rating
19 Jul 2021

English

Assignment: 0 Pages, Deadline: 4 days

Grate job on my assignment. I got a 100 on it. thank you. I have two questions? 1)Whats The distance from Clarksville,TN to Dayton, Ohio? What's the ...

flag User ID: 7***74 United States

student rating student rating student rating student rating student rating
19 Jul 2021

Assignment

Essay: 5 Pages, Deadline: 6 days

Great job by an incredible organization that truly goes above and beyond to assist in any matter. I truly thank you again for your help.

flag User ID: 5***89 Hillsborough, United States

student rating student rating student rating student rating student rating
19 Jul 2021

Networking

Programming: 4 Pages, Deadline: 30 days

Very Good Team and they attend to you whenever u need them and make all the changes required as soon as possible.

flag User ID: 6***7 Brisbane, Australia

student rating student rating student rating student rating student rating
19 Jul 2021

It Write Up

Assignment: 4 Pages, Deadline: 16 days

This was short assignment but i was satisfied with the work. I got good grades and passed the assignment. The assignment was overall good. I ordered i ...

flag User ID: 6***34 Canada

student rating student rating student rating student rating student rating
18 Jul 2021

Healthcare

Essay: 4 Pages, Deadline: 6 days

the revised version of the assignment was ok, based on the feedback for all the parts.

flag User ID: 5***77 Australia

student rating student rating student rating student rating student rating
18 Jul 2021

Nursing

Home Work: 4 Pages, Deadline: 4 days

My assignment always done on time sometime before the given time. MY ASSIGNMENT team is very responsive.

flag User ID: 4***34 United States

student rating student rating student rating student rating student rating
18 Jul 2021

Nursing

Assignment: 4.8 Pages, Deadline: 5 days

My Assignment was done very good. Good work and it was delivered on time. Very responsive.

flag User ID: 4***34 United States

student rating student rating student rating student rating student rating
18 Jul 2021

HRM

Thesis: 6 Pages, Deadline: 9 days

YOU WORKED HARD ON THIS ASSIGNMENT AND DID EXACTLY WHAT WAS ASKED. THANKS, AND I CAN'T WAIT FOR YOU TO DO WELL ON THE NEXT WORK.

flag User ID: 4***64 United States

student rating student rating student rating student rating student rating
19 Jul 2021

Mechanical Engineering

Assignment: 8 Pages, Deadline: 8 days

Passed my subject because of you. Thank you........................................................................

flag User ID: 2***76 Sydney, Australia

student rating student rating student rating student rating student rating
19 Jul 2021

Healthcare

Essay: 1 Page, Deadline: 17 days

Instructors comments on marking :



The depression rate has been increased by 31% among teenagers in America as a consequence of the excessive us ...

flag User ID: 6***41 Campbell River, Canada

student rating student rating student rating student rating student rating
19 Jul 2021

English

Assignment: 0 Pages, Deadline: 4 days

Grate job on my assignment. I got a 100 on it. thank you. I have two questions? 1)Whats The distance from Clarksville,TN to Dayton, Ohio? What's the ...

flag User ID: 7***74 United States

student rating student rating student rating student rating student rating
19 Jul 2021

Assignment

Essay: 5 Pages, Deadline: 6 days

Great job by an incredible organization that truly goes above and beyond to assist in any matter. I truly thank you again for your help.

flag User ID: 5***89 Hillsborough, United States

student rating student rating student rating student rating student rating
19 Jul 2021

Networking

Programming: 4 Pages, Deadline: 30 days

Very Good Team and they attend to you whenever u need them and make all the changes required as soon as possible.

flag User ID: 6***7 Brisbane, Australia

student rating student rating student rating student rating student rating
19 Jul 2021

It Write Up

Assignment: 4 Pages, Deadline: 16 days

This was short assignment but i was satisfied with the work. I got good grades and passed the assignment. The assignment was overall good. I ordered i ...

flag User ID: 6***34 Canada

student rating student rating student rating student rating student rating
18 Jul 2021

Healthcare

Essay: 4 Pages, Deadline: 6 days

the revised version of the assignment was ok, based on the feedback for all the parts.

flag User ID: 5***77 Australia

student rating student rating student rating student rating student rating
18 Jul 2021

Nursing

Home Work: 4 Pages, Deadline: 4 days

My assignment always done on time sometime before the given time. MY ASSIGNMENT team is very responsive.

flag User ID: 4***34 United States

student rating student rating student rating student rating student rating
18 Jul 2021

Nursing

Assignment: 4.8 Pages, Deadline: 5 days

My Assignment was done very good. Good work and it was delivered on time. Very responsive.

flag User ID: 4***34 United States

student rating student rating student rating student rating student rating
18 Jul 2021

HRM

Thesis: 6 Pages, Deadline: 9 days

YOU WORKED HARD ON THIS ASSIGNMENT AND DID EXACTLY WHAT WAS ASKED. THANKS, AND I CAN'T WAIT FOR YOU TO DO WELL ON THE NEXT WORK.

flag User ID: 4***64 United States

5% Cashback

On APP - grab it while it lasts!

Download app now

*Offer eligible for first 3 orders ordered through app!

callback request mobile
Have any Query?