Corporate Accounting | My Assignment Tutor

ACC3100 Corporate AccountingAssessment 2 – Trimester 1, 2021Assessment Type: IndividualWeighting: 30%Learning Outcomes Assessed: ULO 1, 2 and 5Word Limit: 3,000 wordsDue Date: 25 May 2021 (Tuesday) 11:59 pm (ASET)All submissions must be submitted with a signed Ozford Institute of Higher Education CoverSheet via Moodle. Late submissions will attract a penalty of 5% of the assessment weightingfor each calendar day late unless an extension is granted by the lecturer.Case StudyAzure Ltd acquired 100% of the shares of Blue Ltd on 1 July 20X8 for $7,000,000.Shareholders’ funds of Blue Ltd at the time of acquisition were: $Share capital3,500,000Retained earnings2,800,0006,300,000 All assets of Blue Ltd are recorded at fair value on the acquisition date.During the 20X9 financial year, Blue Ltd sells inventory to Azure Ltd at a sale price of$1,400,000. The inventory cost Blue Ltd $840,000 to produce. At 30 June 20X9, half of theinventory is still on hand with Azure Ltd.The directors believe that there has been an impairment loss on the goodwill of $70,000 for theyear ended 30 June 20X9.The tax rate for 20X9 financial year is 33%.The financial statements of Azure Ltd and Blue Ltd at 30 June 20X9 are as follows: Azure Ltd($000)Blue Ltd($000)Reconciliation of opening and closing retainedearningsSales revenue8,4002,800less Cost of goods sold(3,500)(980)less Other expenses(420)(210)Other revenue490175Profit4,9701,785Tax expense(1,400)(700)Profit after tax3,5701,085Retained earnings—1 July 20X87,0002,80010,5703,885Dividends paid(1,400)(280)Retained earnings—30 June 20X99,1703,605Statement of financial positionShareholders’ equityRetained earnings9,1703,605Share capital28,0003,500Current liabilitiesAccounts payable700595Non-current liabilitiesLoans4,2001,75042,0709,450Current assetsCash1,750175Accounts receivable1,0501,225Inventory4,2002,100Non-current assetsLand10,0802,800Plant17,2902,800Investment in Blue Ltd7,000–Future income tax benefit700350Goodwill–– –42,0709450 RequirementPrepare the followings for Azure Ltd and its controlled entity:a) Consolidation worksheet entries for 30 June 20X9b) Consolidated financial statements for the year ended 30 June 20X9


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