ACCT 401- Assignment

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Below are the Balance Sheets of Alpha, Beta and Gamma Ltd for the year to 31 December 2007 Beta Gamma Alpha 50 450 Investment in: Beta 153 110 95 Inventory A/R Cash 50 197 180 1330 200 40 170 Total Assets A/P 40 100 Share capital Retained earnings Total liabilities and equity 700 430 1330 200 170 Alpha purchased 75% of the share capital of Beta on 1/1/2006 when Beta’s retained earnings were £60 Alpha purchased 80% of the share capital of Gamma on 1/1/2007 when Gamma’s retained earnings were £32. i) ii) Beta sold inventory to Alpha for 50 pounds and the selling price included a mark-up at cost of 25%. The entire inventory remains unsold by Alpha. iv) In 1/1/2007, Alpha sold a plant asset to Beta for £80. It had originally purchased it in 2001 for £100. It used straight-line depreciation based on a life of ten years (including full year depreciation in year of purchase). Beta depreciates this asset over its remaining life using straight line method v) The A/R of Alpha includes £10 due for Beta. Beta paid back this amount on 22 December 2007, but Alpha has not entered this into its accounts yet. The goodwill on the acquisition of Gamma has been impaired by an estimated 50% in 2007 v) Required
Prepare the Group Consolidated Balance Sheet for the year to 31 December 2007 (a) (b) (c) Record all the necessary Journal entries in the parent company

Record all the necessary worksheet entries required to prepare the consolidated statement of financial position. group Plant assets Investment 300+153 450 80 50 Inventory197 A/R Cash Total A/P 110 50 95 30 63 40 180 50 1330348 170 200 40 14 NCI Share Cap 700 200 100 RE Total 108 56 430 1330 348 170

ACCT 401- Assignment