The writer is very fast, professional and responded to the review request fast also. Thank you.
Ben Ltd operates a number of supermarkets with an emphasis on the supply of quality produce
The operations of Sam Ltd are primarily in the fine fruit market. Believing that the acquisition of Sam Ltd would enable Ben Ltd to expand its supply of quality produce to its customers, Ben Ltd commenced actions to acquire the shares of Sam Ltd. On 1 July 2013, Ben Ltd acquired all the issued shares (cum div.) of Sam Ltd for $130 000. At this date the equity of Sam Ltd consisted of:
Share capital $150 000
Reserves 10 000
Retained earnings 30 000
On 1 July 2013, Sam Ltd had recorded a dividend payable of $6000 and goodwill of $5000
(net of accumulated impairment losses of $7000). The dividend was paid in August 2013. In the
previous year’s annual report Sam Ltd had reported the existence of a contingent liability for
damages based upon a lawsuit by a customer who had slipped on some fallen fruit in one of the
Stores operated by Sam Ltd. Ron Ltd calculated that this liability had a fair value of $9 000.
Sam Ltd also had some customer databases that were not recorded as assets but Ron Ltd placed
affair value of $6000 on these items. Sam Ltd believed that the databases had a future life of
4 years.
All of the identifiable assets and liabilities of Sam Ltd were recorded at amounts equal to their
fair values except for the following:
Carrying amount Fair value
Plant (cost $120 000) $94 000 $96 000
Land 80 000 95 000
Inventory 20 000 26 000
The plant had an expected remaining useful life of 5 years. The land was sold by Sam Ltd in
February 2015. All inventories were sold by 30 June 2014.
In February 2016, Sam Ltd transferred $3000 of the reserves on hand at 1 July 2013 to retained earnings. The remaining $2000 was transferred in February 2017.
The court case involving the damages sought by the customer was settled in May 2017.
Sam Ltd was required to pay $7 000 to the customer.
Required
Prepare the consolidation worksheet entries for the preparation by Sam Ltd of its consolidated
financial statements at 30 June 2017.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more