(Done Paper) Referencing Styles : APA The equipment was estimated to have a further 4-year life with no residual value. Of theinventory on hand in Long Winter L

//(Done Paper) Referencing Styles : APA The equipment was estimated to have a further 4-year life with no residual value. Of theinventory on hand in Long Winter L

(Done Paper) Referencing Styles : APA The equipment was estimated to have a further 4-year life with no residual value. Of theinventory on hand in Long Winter L

The equipment was estimated to have a further 4-year life with no residual value. Of theinventory on hand in Long Winter Ltd at 1 July 2015, 90% was sold in April 2016, and theremaining 10% was sold in July 2016. On 1 January 2017, the equipment was sold to AutumnLeaves Ltd for $280,000. The tax rate is 30%.During the period 1 July 2015 to 30 June 2017, the following intragroup transactions haveoccurred between Sunnyside Ltd and Long Winter Ltd:(T1) From January 2016 to June 2016, Sunnyside Ltd … View More The equipment was estimated to have a further 4-year life with no residual value. Of the inventory on hand in Long Winter Ltd at 1 July 2015, 90% was sold in April 2016, and the remaining 10% was sold in July 2016. On 1 January 2017, the equipment was sold to Autumn Leaves Ltd for $280,000. The tax rate is 30%. During the period 1 July 2015 to 30 June 2017, the following intragroup transactions have occurred between Sunnyside Ltd and Long Winter Ltd: (T1) From January 2016 to June 2016, Sunnyside Ltd provided management services to Long Winter Ltd for $60,000. Long Winter Ltd paid $40,000 of this balance in April 2016, and the remaining $20,000 was paid in July 2016. (T2) At 30 June 2016, Long Winter Ltd approved and declared a final dividend of $18,000, and Sunnyside Ltd declared and approved a final dividend of $30,000. These dividends were paid on 31 July 2016. (T3) At 30 June 2017, Sunnyside Ltd approved and declared a final dividend of $35,000, and Long Winter Ltd declared and approved a final dividend of $24,000. These dividends were paid on 31 July 2017. (T4) On 1 January 2016, Long Winter Ltd sold equipment to Sunnyside Ltd for $120,000. The cost of the equipment to Long Winter Ltd was $150,000, and the equipment had been depreciated by $40,000 at the time of sale. Equipment has a further five-year life, with zero residual value, and is depreciated on a straight-line basis. 3 (T5) In February 2016, Sunnyside Ltd sold inventory to Long Winter Ltd for $63,000. Sunnyside Ltd had previously purchased the inventory for $42,000. By 30 June 2016, Long Winter Ltd had sold two-thirds of this inventory to Spring Flowers Ltd for $46,000. Long Winter Ltd then sold the remainder of the inventory to Umbrella Ltd in July 2016 for $32,000. (T6) In December 2016, Sunnyside Ltd sold inventory to Long Winter Ltd at a transfer price of $30,000. The transfer price included a mark-up of 25% on cost. Long Winter Ltd sold all of this inventory to Umbrella Ltd in August 2017 for $39,000. (T7) On 1 April 2017, Long Winter Ltd sold machinery to Sunnyside Ltd for $85,000. At the time of sale, machinery had a carrying amount of $91,000. Machinery has a further 10- year life, with zero residual value, and is depreciated on a straight-line basis. (T8) On 1 July 2015, Long Winter Ltd rented a warehouse to be used jointly by Sunnyside Ltd and Hilltops Ltd with each company paying half the agreed rent to Long Winter Ltd. The total rent paid to Long Winter Ltd was $60,000 for the year ended 30 June 2016, and $70,000 for the year ended 30 June 2017. (T9) Long Winter Ltd Ltd issued 5,000 10% debentures of $100 at nominal value on 1 October 2016. Sunnyside Ltd acquired 500 of these. Interest is payable half-yearly on 31 March and 30 September. Accruals have been recognised in the legal entities’ accounts. Required a) Prepare the acquisition analysis and consolidation worksheet entries at 1 July 2015. All workings and narrations must be provided. b) Prepare the consolidation worksheet entries at 30 June 2016. All workings and narrations must be provided. c) Prepare the consolidation worksheet entries at 30 June 2017. All workings and narrations must be provided.

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By | 2018-08-25T18:26:56+00:00 August 25th, 2018|Business|0 Comments

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