Matray acquired 16,000 ordinary shares of Petros on 1 April 20X9. On 31 December 20X8 Petros’s accounts showed a share premium of $4,000 and retained earnings of $15,000. The fair market value of non-controlling interest at acquisition was $7,000. Below are the statements of financial position for the two companies as at 31 December 20X9: Matray Petros Non-current assets: Property, plant and equipment 39,000 33,000 Investment in Petros 50,000 Current assets 78,000 40,000 Total assets 167,000 73,000 Equity and liabilities Equity Ordinary shares of: $1 each 100,000 : 50c each 10,000 Share premium 7,000 4,000 Retained earnings 40,000 39,000 Current liabilities 20,000 20,000 Total equity and liabilities 167,000 73,000 Required: Prepare the consolidated statement of financial position of Matray as at 31 December 20X9. Assume profits have accrued evenly throughout the year
1. Matray acquired 16,000 ordinary shares of Petros on 1 April 20X9. On 31 December 20X8
Petros’s accounts showed a share premium of $4,000 and
market value of non-controlling interest at acquisition was $7,000.
Below are the statements of financial position for the two companies as at 31 December 20X9:
Matray Petros
Non-current assets:
Property, plant and equipment 39,000 33,000
Investment in Petros 50,000
Current assets 78,000 40,000
Total assets 167,000 73,000
Equity and liabilities
Equity
Ordinary shares of: $1 each 100,000
: 50c each 10,000
Share premium 7,000 4,000
Retained earnings 40,000 39,000
Current liabilities 20,000 20,000
Total equity and liabilities 167,000 73,000
Required:
Prepare the consolidated
profits have accrued evenly throughout the year
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