09 Mar RESEARCH ASSIGNMENT SEMESTER 2, 2015 INFORMATION Y
RESEARCH ASSIGNMENT SEMESTER 2, 2015 INFORMATION Your assignment must be submitted no later than the Friday ending week 10. Penalties will apply for late submission. The following matters should be given particular attention: 1. In your assignment use a 12-pt Times New Roman font, use 2 cm margins on all four sides of your page. 2. Evidence of extensive research beyond the prescribed text is required. Ensure these are referenced appropriately. Refer to the statement regarding plagiarism. 3. No extensions will be granted unless supported by appropriate documentation prior to the due date. 4. This assignment must be handed in for successful completion of the course and will count 25 marks towards the final mark. 5. Marks have been allocated to each specific section of your assignment. 6. The assignment is to be conducted in groups of two. ASSIGNMENT Part A Question 1 The financial statements of Orange Ltd and its subsidiary, Plum Ltd, at the 30 June 2015 contained the following information: Orange Ltd $ Plum Ltd $ Profit before tax 3,200 1,800 Income tax expense 1,300 240 Profit for the year 1,900 1,560 Retained earnings (1/7/14) 1,500 2,100 3,400 3,660 Dividend paid 500 0 Retained earnings (30/6/15) 2,900 3,660 Share capital 25,000 10000 General reserve 8,000 3000 Other components of equity* 1,000 500 Liabilities 5,000 1,300 41,900 18460 Land 8,600 5,100 Plant 17,000 8,000 Accumulated depreciation (5,000) (1,000) Financial assets 3,000 2,000 Inventory 3,000 4,000 Cash 300 360 Shares in Plum Ltd 15,000 41,900 18,460 * This relates to the available-for-sale assets financial assets. The balance of the accounts at 1/7/14 were $1500 (Orange Ltd) and $300 (Plum Ltd) Orange Ltd had acquired al the shares capital of Plum Ltd on 1 July 2013 for $15000 when the equity of Plum Ltd consisted of: Share capital 10000 shares $10000 General reserve 2000 Retained earnings 1500 At the acquisition date by Orange Ltd, Plum Ltd.’s non-monetary assets consisted of: Carrying amount $ Fair value $ Land 4000 6000 Plant (cost $6000) 5500 6500 Inventory 3000 4000 Additional information: The plant had a further 5-year life. All the inventory was sold by 30 June 2014. All valuation adjustments to non-current assets are made on consolidation. The land was sold in January 2015 for $6000. The relevant business combination valuation reserves are transferred, on consolidation, to retained earnings. In September 2013, Plum Ltd transferred $500 from its general reserve, earned before 1 July 2013, to retained earnings. The tax rate is 30%. Required Prepare the following for Orange Ltd: a. Calculate gain or loss on purchase (Marks 1.5) b. Prepare the valuation entries at 1 July 2015 (Marks 2) c. Prepare the consolidation worksheet (Marks 6) d. Prepare the Consolidated Statement of Comprehensive Income for the financial year ending 30 June 2015 (Marks 2) e. Prepare the Consolidated Statement of Changes in Equity for the financial year ending 30 June 2015 (Marks 3.5) f. Prepare the Consolidated Statement of Financial Position for the financial year ending 30 June 2015 (Marks 4) Part B Question 2 Explain how the existence of a bargain purchase affects the pre-acquisition entries, both in the year of acquisition and in subsequent years. (Marks 3) Question 3 Some adjustment entries in the previous period’s consolidation worksheet are also made in the current period’s worksheet; explain. (Marks 3)
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.