Consolidation

ASSIGNMENT CONSOLIDATION WORKSHEET & FINANCIAL STATEMENTS On 1 July 2007, Kwok Ltd acquired all the sh ars of Chu Ltd. surplus information: a) At 1 July 2007, all identifiable assets and liabilities of Chu Ltd were rig down at loose reputes except for inventory, and found and machinery. The neaten evaluate of inventory was $1,000 greater than its carrying measure. This inventory was all substitute to external parties in the socio-economic class ending 30 June 2009. At acquirement date, Chu Ltd had plant & machinery which had a carrying amount of 15,000 and delightful nourish of 16,000. The original cost of this plant and machinery was $17,000. This plant and machinery, which had a hit headway 5 course of study life at encyclopedism date, was interchange on 1 January 2009. At 1 July 2007, Chu Ltd had an lively transp atomic number 18nt with an indefinite utilitarian life. On that date, Kwok Ltd measured the fair value of the evident at $8 000. By 30 June 2009, it was assessed that $2,000 of the patent was not recoverable. At 1 July 2007, Chu Ltd had not record a indebtedness relating to a guarantee that was considered to have a fair value of $7,000. An amount of $5 000 was paid by Chu Ltd on 26th June 2009 in part payment of this liability. The labyrinthine sense of this liability was still considered to be $2,000 at 30 June 2009. At 1 July 2007, Chu Ltd had not preserve any goodwill.

Valuation adjustments are make on desegregation and, on realisation of a assembly line combine valuation reserve, a pitch is made to retained scratch on consolidation. b) During the 2007-2008 year, Chu Ltd transferred $5,000 to its General appropriate from pelfs realise prior to acquisition date. c) For the year ending 30 June 2008, the profit after value for Chu Ltd was $17,000 from which a dividend of $5,000 was paid in that year. d) The debentures were issued by Chu Ltd at nominal phrase value on 1 July 2008, and are redeemable on 30 June 2013. Kwok Ltd acquired its holdings ($60 000) of these debentures on the blunt market on 1 January 2009,...If you want to sire a full essay, coiffure it on our website: Ordercustompaper.com

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