Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. information below relates to rackoff ltd and maker

information below relates to Rackoff Ltd and Makerne ud. On 1 Buly 2019 Rackoff Ltd...

50.1K

Verified Solution

Question

Accounting

image
information below relates to Rackoff Ltd and Makerne ud. On 1 Buly 2019 Rackoff Ltd acquired all of the issued shares of Makeme Ltd for $880,000. At the acquisition date the equity of Makeme ha sorted Share capital $200,000 Reserves 300,000 Retained earnings 250,000 At the date of acquisition this equity reflected the fair values of all the identifiable assets and liabilities of Makeme Ltd with the exception of Accounts Receivable which had a fair value $10,000 greater than its carrying amount. The corporate tax rate is 30% Required: (a) Prepare the Analysis of the situation and prepare the 30 June 2020 consolidation journal entries (with narrations) relevant to the above transactions and events for the books of the parent company. marks) (8 (b) On 30 June 2020, the drafted individual financial statements of both companies are given as below. Based on the adjustment entries you have provided, complete the consolidation worksheet for 30 June 2020 provided. (12 marks)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Prepare general journal entries without explanations to record the following transactions Jan 1 Sold merchandise to Kelly...

Accounting
Q

Let x represent the number of mountain climbers killed each year. The long-term variance of x...

Basic Math
Q

Here’s a weird but easy to calculate economy. Suppose everybody in the economy experiences exactly same...

Economics
Q

A remora fish follows a shark around to getscraps of food left over after the...

Biology
Q

According to a major credit card company the mean outstanding credit card debt of college...

Statistics
Q

Find the point that is symmetric to 13 6 with respect to the x axis...

Algebra
Q

What are the domain and range of the function f x 4 81 Oxx is...

Algebra
Q

Q3 please answer :; Note X to the Statement of Cash Flows: During the year,...

Accounting
Q

a. On December 31,201, the Notes Payable account at Northwood Manufacturing Company had a balance...

Accounting
Q

Smithen Company, a wholesale distributor, has been operating for only a few months. The company...

Accounting
Q

Return on Total Assets A company reports the following income statement and balance sheet information...

Accounting
Q

Derr Company reports the following. Compute (a) controllable variance, (b) volume variance, and (c) total...

Accounting