ACCOUNTING-The following financial statements of William Ltd and its subsidiary

The following financial statements of William Ltd and its subsidiary Adam Ltd have been extracted from their financial records at 30 June 2012.William LtdAdam Ltd$$$$Extract from Statements of Comprehensive Income and Changes in EquitySales Revenue1,114,524896,400Cost of Sales(770,240)(395,080)Gross Profit344,284501,320Other RevenueDividends received from Adam154,380-Management fee revenue43,990-Gain on sale of equipment66,40058,100ExpensesGeneral expenses(51,128)(64,242)Selling expenses(167,826)(119,520)Depreciation(48,970)(94,288)Management fee expense-(43,990)Total expenses(267,924)(322,040)Profit before tax341,130237,380Income tax expense(102,090)(70,052)Profit for the period239,040167,328Retained earnings 30 June 2011530,204397,072769,244564,400Dividends paid(228,084)(154,380)Retained earnings 30 June 2012541,160410,020Statements of Financial PositionCurrent assetsCash20,00030,000Accounts receivable78,60473,418Inventory152,72048,140Non-current assetsInvestment in Adam Ltd590,960-Land371,840541,160Equipment (cost)497,751590,628Accumulated depreciation(142,345)355,406(230,408)360,220Total Assets1,569,5301,052,938Current liabilitiesAccounts payable90,80276,858Short-term loan payable68,55841,500Non-current liabilitiesLong-term debt288,010192,560Shareholders’ equityShare capital581,000332,000Retained earnings541,160410,020Total Liabilities & Equity1,569,5301,052,938Other information:·William Ltd acquired the 100 per cent interest in Adam Ltd on 1 July 2007, that is five (5) years earlier.At that time the capital and retained earnings of Adam Ltd were:Share capital $332,000Retained earnings$298,800 $630,800At the date of acquisition all assets were valued at their fair value.·During the year William Ltd made total sales to Adam Ltd of $99,600, and Adam Ltd sold $83,000 of inventory to William Ltd.·The opening inventory in William Ltd as at 1 July 2011 included inventory acquired from Adam Ltd for $66,400 that had cost Adam Ltd $49,800.·The closing inventory of William Ltd includes inventory acquired from Adam Ltd at a cost of $54,780.This inventory had cost Adam $46,480.·The closing inventory of Adam Ltd includes inventory acquired from William Ltd at a cost of $19,920.This inventory had cost William Ltd $16,600.·On 1 July 2011 Adam Ltd sold an item of equipment to William Ltd for $192,560 when its carrying value in Adam Ltd’s books was $134,460 (cost $224,100, accumulated depreciation $89,640).This equipment is assessed as having a remaining useful life of six (6) years.·Adam Ltd paid $43,990 in management fees to William Ltd.·The tax rate is 30 per cent.RequiredPrepare the journal entries necessary for the preparation of consolidated financial statements.Prepare a consolidated statement of financial position as at 30 June 2012 and a consolidated statement of comprehensive income and a consolidated statement of changes in equity for the period ended 30 June 2012 for William Ltd and its subsidiaries.You can use a consolidation worksheet if you wish to, however it is NOT required for this assignment, and no marks will be awarded for it.Adapted from Leo et al. (2009) Company accounting (8thed) John Wiley and Sons, Milton,Queensland.

 

 

Lets Start Working

Plagiarism Free

We use anti-plagiarism software to ensure you get high-quality, unique papers. Besides, our writers have a zero plagiarism mentality

On Time Delivery

Your essay will be delivered strictly within the deadline.  If you have an urgent order, we can do it!

Money Back Guarantee

We offer warranty service, including free revisions, and a right to request a refund incase your expectations are not met!

THE BEST PAPER WRITER HELPER

Our Advantage

  • Say “NO” to plagiarism – FREE plagiarism report as an addition to your paper
  • The lowest prices that fit excellent quality
  • Authorship – you are the one who possesses the paper. We DO NOT re-sale or re-use any of them.

OUR PAPER WRITER HELPER GOODIES

Our Freebies

  • Free Cover Page
  • Free Revisions
  • Free Reference Page
  • Free 24/7 support

Pin It on Pinterest

Share This