[Streidos]

Prefect Ltd acquired all the issued capital of Adent Ltd on 1 July 20X5 for $850,000. At that date the shareholders’ equity of Adent Ltd was:
$
Share capital 500,000
General reserve 150,000
Retained Earnings 75,000


At the date of acquisition, Adent Ltd had a declared, but unpaid, dividend for $25,000. This was paid on 28 August 20X5.

Additional information for the year ended 30 June 20X7:
(I) Inter company sales:
• Prefect Ltd to Adent Ltd $15,000
• Adent Ltd to Prefect Ltd $10,000

(ii) Unrealised profits in closing inventory as at 30 June 20X7 is $1,000 for goods sold by Adent Ltd to Prefect Ltd and $2,500 for goods sold by Prefect Ltd to Adent Ltd.
(iii) Unrealised profit in opening inventory for goods sold by Prefect Ltd to Adent Ltd as at 1 July 20X6 is $2,000 and for goods sold by Adent to Prefect is $1,500.
(iv) Adent Ltd, a management consulting company, provides consulting services to Prefect Ltd. For these services, Prefect Ltd pays a consultancy fee of $30,000 per annum.
(v) The final dividend of $15,000, declared as at 30 June 20X6, was paid by Adent Ltd in September 20X6. This dividend was paid out of post-acquisition profits.
(vi) On 1 January 20X7, Prefect Ltd purchased computer equipment from Adent Ltd for $15,000. Adent Ltd made profit on this sale of $2,500. Both companies depreciate computer equipment at 30% per annum.
(vii) Adent Ltd borrowed funds from Prefect Ltd by issuing 200, 8% Convertible Notes (each with a face value of $100) on 1 July 20X6 to Prefect Ltd. Interest is paid at the end of each quarter (and has been paid for the period ending 30 June 20X7).
(viii) The directors review the balance of goodwill each year. They agree that: • For the year ended 30 June 20X6, goodwill was impaired by $10,000.
• For the year ended 30 June 20X7, goodwill is to be impaired by $15,000.
Consolidation Worksheet 30 June 20x7 Prefect Ltd Adent Ltd

Sales 1,924,500 605,500
Less Cost Of Sales
Inventory 1.7.20x6 87,200 32,000
Purchases 786,400 215,000
873,600 247,000
Inventory 30.6.20x7 81,200 33,000
Cost of Goods Sold 792,400 214,000

Gross Profit 1,132,100 391,500

Add Consultancy Fees received - 30,000
Gain in Sale of equipment - 2,500
Dividends Received 27,000 -
Interest received from Adent Ltd 1,600 -
1,160,700 424,000
Less: Expenses – selling expenses 166,000 45,000
Admin Expenses 711,600 165,000
Financial Expenses 72,500 12,000

Total Expenses 950,100 222,000

Operating Profit before Tax 210,600 202,000
Less Tax Expenses 63,600 60,600
Profit After Tax 147,000 141,400

Retained Earnings 1.7.20x6 291,700 103,600
Available Appropriation 438,700 245,000
Appropriations
Interim Dividend Paid 20,000 12,000
Final Dividend Declared 35,000 16,000
Total Appropriations 55,000 28,000
Retained Earnings 30.6.20x7 383,700 217,000
Share Capital 1,500,000 500,000
General Reserve 125,000 150,000
8% Convertible - 20,000
Accounts Payable 78,800 28,300
Dividends Payable 35,000 16,000
Taxation Payable 15,000 22,800
2,137,500 954,100

Property Plant & equip (net) 965,000 545,000
Computer Equip 15,000
Shares in Adent Ltd 825,000 -
8% Convertible Notes in Adent Ltd 20,000 -
Other non-current assets 149,600 210,100
Inventory 81,200 33,000
Other current Assets 96,700 116,000
Goodwill on Consolidation -
Accumulated Impairment – goodwill
2,137,500 954,100

[ROLCAM]

We are NOT allowed to do homework for students.

[Streidos]

This is an example so I can get my head around it. I will ow blog that your website is useless.

[morgaine300]

The website is obviously not useless or it wouldn't still get so much traffic.

The difficulty is that you apparently have some rather unrealistic expectations of a site full of people who are volunteering their time because they choose to, while still having lives, families, jobs, etc.

That's a pretty long problem to just expect some volunteer to do for you, without even seeing any effort on your part to participate in it. You've got like a whole chapter there.

[ttuaimeiapi]

Where can I start to do.?

[ROLCAM]

ttuaimeiapi,

What you need is a personal tutor.
You need to become more humble if you need the help of others.
You start by introducing yourself to this wonderful website.
You need to explain your present circumstances.
You do not demand here, you ask nicely and endear yourself with an expert that
Has plenty of time to devote to you.
ttuaimeiapi, what is your relationship with STREIDOS.
You cannot just jump on someone else's cart.
Start your own questions and make sure they are not homework questions.
If your questions are homework, explain to us what you do not understand.
Attempt to do the work.
We shall try and direct you to the right route.

ROLCAM