Tinto Ltd obtained control of Suda ltd by acquiring 80% of the issued share capital of Suda ltd at 1 January 2015. The consideration is to be settled as follows: · A cash payment of R1 000 000 · The fair value of machine is R500 000 is recorded in Tinto ltd · Tinto ltd will issue new shares to the seller, to the value of R600 000
Q: Sweet Company’s outstanding stock consists of 1,800 shares of cumulative 5% preferred stock with a…
A: Dividend per share: Dividend per share is calculated for Preferred stock as well as Common Stock.…
Q: Why is internal control questionnaire important in internal control components in Auditing?
A: Internal control is a process which helps an organization achieve its objectives toward operational…
Q: ock Solid Bank and Trust (RSB&T) offers only checking accounts. Customers can write checks and use a…
A: Operating Profit = Sales Revenue - Interest Cost - Operating cost
Q: Crane Manufacturing uses job order costing for its production of MP3 players. The cost incurred for…
A: Cost per unit is calculated by dividing the total cost of goods manufactured with the total number…
Q: On April 1, 2024, Sandhill Company purchased 46,400 common shares in Ecotown Ltd. for $13 per share.…
A: Journal entry is the procedure for initially documenting commercial transactions in the books of…
Q: ROBLEM 3-22 Correcting Physical Inventory Count your audit of the RABBIT, INC., you find that a…
A: The ending inventory consists of the goods that belongs to the suppliers. The goods that are sold…
Q: Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the…
A: Depreciation Expense - Depreciation Expenses are incurred on the fixed assets of the company. It is…
Q: Sun Corporation was organized on January 1, 2013. The articles of incorporation authorized 200,000…
A: Debit what comes in, Credit what goes out Debit the receiver, Credit the giver Debit all expenses,…
Q: “I know headquarters wants us to add that new product line,” said Dell Havasi, manager of Billings…
A: Return on investment or ROI as commonly referred to as, is the ratio calculated between the net…
Q: Can you explain the choices an executor of an estate has in determining the values of assets…
A: An executor has several options when it comes to valuing assets for tax purposes. The most common…
Q: A man worked 48 hours in one week. His regular pay was $7.20 per hour with time and a half for…
A: As per the Federal Law, overtime hours should be paid at the rate of one and half of the regular pay…
Q: Part U16 is used by Mcvean Corporation to make one of its products. A total of 19,000 units of this…
A: Financial advantage / (disadvantage) = Cost making the Part U16 - Purchasing Cost from outside…
Q: this is wrong. Answer is B
A: A dividend is defined as the part of the profit which is not distributed by the company among the…
Q: A company began January with 9,000 units of its principal product. The cost of each unit is $5.…
A: Solution:
Q: ou have $8,800 to buy a bc he number of months:
A: Answer : Amount = $8800 Principal = $250 rate = 2.4% Month = ?
Q: Please explain the solution and purchase budget is wrong
A: Explanation: (Production Budget) Budgeted Sales for the months is given Closing stock is calculated…
Q: product line. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 1.…
A: ROI ROI stands for return on investment. It is a measure of performance which is used to determine…
Q: A company applies overhead at a rate of 170% of direct labor cost. Actual overhead cost for the…
A: The overhead expenses are those expenses that cannot be traced directly to any product. These…
Q: QS 11-12 (Algo) Dividend allocation between classes of shareholders LO C2 Stockholders' equity of…
A: Dividend - Dividend is the amount declared by the company from the accumulated profit earned by it.…
Q: The Cook Corporation has two divisions--East and West. The divisions have the following revenues and…
A: Net operating income means the amount of income earned by an entity from its operations whereas net…
Q: The Field, Brown & Snow are partners and share income and losses equality. The partner decide to…
A: Partnership means where two or more person comes together to run the business and share profit or…
Q: Balboa, Inc. provided the following budgeted information for June through October: June $22,320…
A: In this question, we need to compute the budgeted net income for the month of September. Calculation…
Q: A special revenue fund used to account for flood control activities has these transactions: Payroll,…
A: Special revenue fund is account for revenues and expenditures that are legally restricted or…
Q: Pierce Corp. has a December 31 year end. It received its property tax invoice of $72,000 for the…
A: Property tax expense = $72,000×4/12 =$24,000
Q: how do u get the 0.995?
A: HRD= P90000+P2500+ 0.005 HRD Taking HRD on left side of equation HRD-0.005HRD= P92500 0.995 HRD=…
Q: In 2021, a 52-year-old participant in a 401(k) plan may contribute a maximum of: Multiple Choice O O…
A: A qualifying profit-sharing plan may include a component known as a 401(k), which gives workers the…
Q: On the lottery's year-end statement of net position, total assets are: Question 45 options: a)…
A: Particulars Amount in $ Current assets 3000 Long-term investments 10000 Deferred inflow for…
Q: Pope Company manufacture a variety of hiking boots and has received a special one-time only order…
A: Special Order For one-time order, only variable manufacturing expenses are relevant cost, fixed…
Q: At January 1, 2021, Canaday Corporation had outstanding the following securities: 680 million common…
A: Basic EPS=Net income-Preferred dividendsWeighted average number of common shares outstanding during…
Q: PROBLEM #3: TREND ANALYSIS (CHAPTER 10) Twins Farm is in the process of applying for a USDA/FSA Farm…
A: Trend Analysis - Trend analysis is a technique to calculate comparison for change in the current…
Q: Problem 1. a. Grapicsco Co. acquired a 3-D printer for $20,000 on January 2013. The printer had an…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: Rita owns a sole proprietorship in which she works as a management consultant. She maintains an…
A:
Q: Total cost data follow for Glendale Manufacturing Company, which as a normal capacity per period of…
A: When determining whether or not to fulfill a customized request, management must take into account…
Q: Four of my friends each have a business. I purchase their businesses from them. Three of my friends…
A: You purchase the business of your Four Friends Three of your Friend Owed a Debt of 150 each Debt…
Q: Jillet Corporation began the year with inventory of 16,000 units of its only product. The units cost…
A: ANSWER:- Ending inventory =199,820 Cost of Goods Sold (75,000 units) = 735,700 Income before…
Q: Amount Desired at End of Period Length of Time Rate Compounded $ 17,600.00 7 2% Quarterly Required:…
A: It has been provided: Amount desired = 17600 Length of time = 7 years Rate = 2% Compounding…
Q: How much is compensation income of Floro in the current month?
A: Compensation income is the total of gross wages and salaries payable to the employees and also…
Q: Brandin Grocers gives one loyalty point to its customers for every dollar spent in the store. The…
A: Liability means the amount which is to be paid to an outsider by business. It is the present…
Q: Determine the financial statement effects of using lower of cost and net realizable value to report…
A: 1. In Income statement, there will be no effect on Revenue side due to decrease in the value of…
Q: The management of Furrow Corporation is considering dro upcoming year appear below: Sales $970,000…
A: Financial advantage (disadvantage) is based on the current income and income after discontinuing the…
Q: 1. Journalize the following transactions for Kaye Inc. Kaye Inc. uses perpetual inventory system and…
A: Journal Entries -Journal Entries are used to record transactions entered into by the company. It is…
Q: A company began January with 9,000 units of its principal product. The cost of each unit is $5.…
A: The total cost of goods purchased or produced during a given time period is then divided by the…
Q: The records of Family Manufacturing show the following information: Estimated manufacturing overhead…
A: Answer:- Overhead meaning:- An recurring cost of running a business is generally referred to in…
Q: Gallatin County Motors Inc. Absorption Costing Income Statement For the Month Ended July 31 $ $…
A: Please see the statements below for the above questions
Q: NewTech purchases computer equipment for $267,000 to use in operating activities for the next four…
A: Depreciation is an expense for the firm which reduces the value of an asset over its useful life.…
Q: Straight Line Units of Production DDB
A: Introduction: - Depreciation is a non-cash expense. Depreciation is charged on fixed asset over a…
Q: The Montana Company paid for the acquisition of an equipment by signing a $100,000 three year 6%…
A: Year cash flows Pv factor @ 10% Present value a b c d= b x c 1 6000 0.9091 5455 2 6000 0.8264…
Q: [The following information applies to the questions displayed below.] Ramirez Company installs a…
A: Depreciation refers to the non-operating expenses by which the fixed asset value decreases over its…
Q: 1(a). Assume the company uses straight-line depreciation for the equipment. At the beginning of the…
A: Purchase Price of Equipment = $40,000 Salvage Value = $10,000 Estimated Useful Life = 4 Years
Q: For the following loan, calculate the monthly payment and then complete the partial amortization…
A: The amount that is due each month in order to pay off the loan within the allotted time frame is…
Q5
Tinto Ltd obtained control of Suda ltd by acquiring 80% of the issued share capital of Suda ltd at 1 January 2015. The consideration is to be settled as follows: · A cash payment of R1 000 000 · The fair value of machine is R500 000 is recorded in Tinto ltd · Tinto ltd will issue new shares to the seller, to the value of R600 000 |
---|
Journalize the above transaction in the books of Tinto ltd.
Step by step
Solved in 2 steps with 1 images
- DDaniel Ltd purchased 75 per cent of the issued capital and in the process gained control over Riccardo Ltd on 1 July 2020. The fair value of the net assets of Riccardo Ltd at purchase was represented by: Share Capital $3,760,000 Retained Earnings 1,320,000 Daniel Ltd paid cash consideration of $4 000 000 for Riccardo Ltd. During the period ended 30 June 2021, Riccardo Ltd paid management fees of $540 000 to Daniel Ltd and Riccardo Ltd had an operating profit of $980 000. Riccardo Ltd's opening retained earnings at the beginning of the period were $1 460 000. At the end of the period Riccardo Ltd declared a dividend of $90 000. There were no other inter-company transactions. Goodwill was determined to have been impaired by $19 000 during the period. Companies in the group accrue dividends when they are declared by subsidiaries.For the period ended 30 June 2021, what consolidation journal entries are required and what is the non-controlling interest?Midrand Ltd acquired a 90% interest in Bramely Ltd on 2 December 20.21 for R2 million. The consideration was settled as follows: Cash payment, Issue of 100 000 shares to the seller Issue of debentures to the seller REQUIRED QUESTION 3 Prepare the relevant journal entries to record the above transactions. R 1000 000 Legal and other costs incurred in relation to the acquisition of the shares in relation to Bramely Ltd amounted to R126 000. Costs to issue the shares and the debentures amounted to R89 000 and R77 500 respectively. Journal narrations are required Your answer should comply with the requirements of International Financial Reporting Standards (IFRS's). 650 000 450 000P Limited obtained control with the acquisition of an 80% equity interest in the share capital of S Limited on 1 January20.9 and paid R100 000 cash and transferred 10 000 ordinary equity shares in W Limited, with a market value of R4 pershare, to settle the purchase price of R140 000 for the acquisition of an 80% interest.How much will be recorded as the Investment in S Ltd in the separate financial statements of S Ltd?Select one:a.R100 000b.R110 000c.R140 000d.R80 000
- Please assist that if on 1 July 2014 Padma Ltd acquires 25 per cent of the issued capital of Jamuna Ltd for a cash consideration of $360 000. At the date of acquisition, the shareholders’ equity of Jamuna Ltd is: Share capital $450 000 Retained earnings $300 000 Total shareholders’ equity 750 000 Additional information • On the date of acquisition, buildings have a carrying amount in the accounts of Jamuna Ltd of $240 000 and a market value of $300 000. The buildings have an estimated useful life of 10 years after 1 July 2014. • For the year ending 30 June 2015 Jamuna Ltd records an after-tax profit of $90 000, from which it pays a dividend of $30 000. • For the year ending 30 June 2016 Jamuna Ltd records an after-tax profit of $300 000, from which it pays a dividend of $150 000. • Assume a tax rate of 30% is assumed Required Apply equity method of accounting to: (a) Calculate the amount of goodwill at the date of acquisition (b) Prepare the journal entries for the year ending 30 June…(a) On 1 January 2023, the LW Group purchased 90% of the 3.75m £1 equity share capital of JL Ltd. The costs incurred by LW Group at the date of acquisition were as follows: Cash paid on 1 January 2023 Professional fees Bank fees and charges associated with the acquisition £'000 124,800 850 1,000 In addition to the costs shown above, LW issued 15,000,000 25p ordinary shares to the shareholders of JL Ltd as part of the consideration. As at 1 January 2023 the market value of LW shares were £1.50 each and JL Ltd shares were valued at £1.20 each. LW will also pay a further £5,000,000 in cash on 1 January 2024. An appropriate discount rate is 7%. A further 2,000,000 shares will be issued by LW to the shareholders of JL Ltd on 1 January 2024 if profits increase by 5% over the next 12 months. The directors believe there is a 60% likelihood of the contingent consideration being achieved and that the market value of LW shares are expected to rise to £1.80 each. A due diligence report indicates…Question 5 Tinto Ltd obtained control of Suda ltd by acquiring 80% of the issued share capital of Suda ltd at 1 January 2015. The consideration is to be settled as follows: · A cash payment of R1 000 000 · The fair value of machine is R500 000 is recorded in Tinto ltd · Tinto ltd will issue new shares to the seller, to the value of R600 000 Journalize the above transaction in the books of Tinto ltd.
- Hlayisani Ltd acquired 60% of the voting shares of the Mashele Ltd on 31 January 2014 for R65 000 when the items ofequity in the books of Mashele Ltd on that date were retained income of R45 000, revaluation surplus of R10 000 andshare capital of R58 000. What is the relationship between Hlayisani Ltd and Mashele Ltd? Select one: a. Venturer and joint venture. b. Investor and associate. c. Parent and subsidiary. d. Venturer and joint operation.Alex Ltd. Is taken over by Billy Ltd. On the following terms: The assets and liabilities of Alex Ltd, shall be valued at P3,000,000 and P1,000,000. P5,000 shall be paid in cash and the balance of consideration shall be discharged by issue of shares of P10 each at a premium of 50%. Show the Calculation of purchase consideration and state the number of shares issued to the shareholders of Alex Ltd.C4) Helta Ltd acquired 100% of the share capital of Buzz Ltd on 1 January 2021. On that date, Helta Ltd began implementing a major change in the nature of Buzz Ltd’s trade. The trading profits/(losses) of each company for the two years ended 31 March 2021 are: Buzz Ltd Helta Ltd ££ Year ended 31 March 2020 80,000 20,000 Year ended 31 March 2021 100,00 20,000 The profits and losses are generated evenly throughout these periods. Neither company has any other income or gains, nor any other associated companies. Required: State, with supporting calculations, how relief is obtained for Buzz Ltd’s loss of £100,000, on the basis that the companies claim relief for losses as soon as possible.
- On 1 July 2014 Padma Ltd acquires 25 per cent of the issued capital of Jamuna Ltd for a cash consideration of $360 000. At the date of acquisition, the shareholders’ equity of Jamuna Ltd is:Share capitalRetained earningsTotal shareholders’ equityAdditional information$450 000 $300 000 750 000• On the date of acquisition, buildings have a carrying amount in the accounts of Jamuna Ltd of $240 000 and a market value of $300 000. The buildings have an estimated useful life of 10 years after 1 July 2014.• For the year ending 30 June 2015 Jamuna Ltd records an after-tax profit of $90 000, from which it pays a dividend of $30 000.• For the year ending 30 June 2016 Jamuna Ltd records an after-tax profit of $300 000, from which it pays a dividend of $150 000.• Assume a tax rate of 30% is assumedRequiredApply equity method of accounting to:(a) Calculate the amount of goodwill at the date of acquisition (3 marks) (b) Preparethejournalentriesfortheyearending30June2015(3marks) (c) Prepare the…On 8 August 20X3, Alpha Ltd (Alpha) acquired 20 000 shares in Beta Ltd (Beta) that gave Alpha control over Beta in return for 10 000 of its own shares. At that date, Alpha’s shares had a market value of $2.70 each, while Beta’s shares had a market value of $1.30 each. Fees paid to legal advisers for the transaction totalled $2000. What is the fair value of the consideration transferred? a. $29 000 b. $26 000 c. $28 000 d. $27 000Trump Ltd acquired all the assets and liabilities of Bush Ltd on 30 June 2020. The purchase consideration was as follows: • $1,000,000 in cash paid on acquisition date • Two shares in Trump Ltd for every one share in Bush Ltd. Bush Ltd has 2,000,000 shares on issue at 30 June 2020. At 30 June 2013 Trump Ltd shares were quoted on the ASX at $2.50 per share. • A deferred payment of $500,000 to be paid on 30 June 2014.Trump Ltd’s cost of capital is 7% which represents a one period present value factor of 0.9346 • Should the price of Trump Ltd shares fall below $2.50 in the six months following the acquisition Trump Ltd is required to pay a cash contingent consideration. It is estimated that there is a 60% probability that the share price will fall to $2.45 in this period. Other information - Trump Ltd incurred legal and other costs associated with the acquisition of $10,000 - Trump Ltd incurred share issue costs of $4,000 The assets and liabilities acquired from Bush Ltd are as…