Get a unique, high-quality and non-plagiarized paper from us today at the most affordable price
Email us :

On 1 January 2X11, Hardy Ltd acquired 75% of the ordinary share capital (ex div) of Stoney Ltd for $3,750,000

Prepare the consolidation journal entries, with narrations, and consolidated worksheet (using Excel or similar) to consolidate HARDY Ltd and STONEY Ltd for the year ended 30th June 2X16.

Acquisition of Stoney Ltd

On 1 January 2X11, Hardy Ltd acquired 75% of the ordinary share capital (ex div) of Stoney Ltd for $3,750,000. At this date, the accounts of Stoney Ltd included the following balances:
Share capital (3,000,000 ordinary shares) $3,000,000
General reserve 850,000
Retained profits 500,000
All of the identifiable net assets of Stoney Ltd were recorded at fair value except for Land which had a fair value of $300,000 above the carrying amount. Adjustments for the differences are made on consolidation and tax-effect entries are needed.

The following is a list of the information and transactions relating to the companies for the year ended June 2X16
(a) On 1 June 2X16, Stoney sold inventory to Hardy Ltd for $450,000, at a mark-up of 40%. At 30 June 2X16, $210,000 of this inventory was still on hand.
(b) Stoney Ltd sold land to Hardy Ltd in December 2X15. The land had originally cost Stoney Ltd $200,000, but was sold to Hardy Ltd for only $160,000. As part of the sale contract, Stoney Ltd gave Hardy Ltd an interest-free loan of $90,000, and the balance was paid in cash. Hardy Ltd has as yet made no repayments on the loan.
(c) Late in the previous financial year, Hardy Ltd sold some inventory to Stoney Ltd for $85,000, at a before tax loss of $10,000. The stock remained on hand in the books of Stoney Ltd at 30 June 2X15, but was all sold by 30 June 2X16.
(d) On 1 March 2X15, Stoney Ltd rented a spare warehouse to be used jointly by Hardy Ltd and AAA Ltd (an unrelated company) with each company paying half the agreed rent to Stoney Ltd. On this transaction, the total rent received by Stoney Ltd in the 2X14–2X15 year was $7,500 while the rent received in the 2X15–2X16 year was $35,000.
(e) On 1 July 2X15, Hardy Ltd sold an item of machinery to Stoney Ltd for $190,000. This item had cost Hardy Ltd $60,000. Hardy Ltd regarded this item as inventory whereas Stoney Ltd intended to use it as a non-current asset. Stoney Ltd charges depreciation at the rate of
10% p.a. on cost.
(f) A goodwill impairment test at 30 June 2X16 revealed the need to impair goodwill by $15,000. Impairment of goodwill from previous years amounts to $77,500. For consolidation purposes the partial goodwill method is used.
(g) All dividends are recognized before receipt of cash.
(h) The corporate income tax rate is 30% and the companies in the group have financial years from 1st July to 30 June.

Place your order now for a similar paper and have exceptional work written by our team of experts to guarantee you A Results

Why Choose US   

    6+ years experience on custom writing
    80% Return Client
    Urgent 2 Hrs Delivery
    Your Privacy Guaranteed
    Unlimited Free Revisions

How to Place an Order 

Send the assignment details such as the instructions, due date/deadline, number of pages and college level to the customer support agent online on live chat,  fill in the assignment details at place an order or send the information to our email address and a customer support agent will respond to you immediately. 

Once you place your order, we choose for you the best and competent writer for your assignment based on each writer’s competence in handling a subject. 

When the homework is completed, we have a quality assurance team that proofreads the assignment to ensure it meets the required rubric instructions from your professor.

After thorough review of your assignment, we send the paper to the client. In case you need any changes at this point, you can let us know so that we can handle it for you at no extra charge. 

Homework Help Website

Why we should write your Paper 

  1. Money Return guarantee
  2. 0% Plagiarism Rate
  3. Guaranteed Privacy
  4. Written from scratch by highly qualified writers 
  5. Communication at Any Time (24/7)
  6. Flexible Pricing and Great Discount Programs
  7. Timely Deliveries
  8. Free Amendments
Looking for a similar assignment and in urgent need for help? Place your order and have excellent work written by our team of professionals to ensure you acquire the best grades.

  We are here to assist you.


Statistics about Us

130 New Projects
235 Projects in Progress
315 Inquiries
420 Repeat clients

© 2021 Premiered Tutorials
All rights reserved. We provide online custom written papers, such as term papers, research papers, thesis papers, essays, dissertations and other custom writing services.

All papers inclusive of research material are strictly intended to be used for research and study purposes only. Premiered Tutorials does not support or condone plagiarism in any form. These custom papers should be used with proper reference.

Place an Order
error: Content is protected !!