Question 2 MegaBite Lad acquired 80 of the shares of SmallBite two years ago when the reserve SIJ 000. Draft statements of financial position as at 2018 November 30 for each company are as follows: Megalite Ltd SmallBite Ltd Non-current assets Tangible assets Investment in Tropical Blue at cost 51 000 212 000 58 000 270 000 51 000 Current Assets Total assets 106 000 376 000 38 000 89 000 Equity Ordinary Shares at SI cach Retained earnings 201 000 119 000 320 000 38 000 28 000 66 000 Current Liabilities 56 000 376 000 23 000 89 000 Total equity and liabilities Additional information: i. During the year, SmallBite Ltd sold goods to MegaBite Ltd for $120 000, the profit to Tropical Blue being 25% of selling price. At the period end, $40 000 of these goods remain unsold in the inventories of MegaBite Ltd. ii. At 2018 November 30, MegaBite Ltd owed SmallBite Ltd $20 000 for goods bought and this debt is included in the trade payables of MegaBite Ltd and the receivables of SmallBite Ltd. iii. The total impairment on Goodwill now stands at $2 000. Required: Prepare a Consolidated Statement of Financial Position for MegaBite Ltd Group as at 2018 November 30.

Question 2 MegaBite Lad acquired 80 of the shares of SmallBite two years ago when the reserve SIJ 000. Draft statements of financial position as at 2018 November 30 for each company are as follows: Megalite Ltd SmallBite Ltd Non-current assets Tangible assets Investment in Tropical Blue at cost 51 000 212 000 58 000 270 000 51 000 Current Assets Total assets 106 000 376 000 38 000 89 000 Equity Ordinary Shares at SI cach Retained earnings 201 000 119 000 320 000 38 000 28 000 66 000 Current Liabilities 56 000 376 000 23 000 89 000 Total equity and liabilities Additional information: i. During the year, SmallBite Ltd sold goods to MegaBite Ltd for $120 000, the profit to Tropical Blue being 25% of selling price. At the period end, $40 000 of these goods remain unsold in the inventories of MegaBite Ltd. ii. At 2018 November 30, MegaBite Ltd owed SmallBite Ltd $20 000 for goods bought and this debt is included in the trade payables of MegaBite Ltd and the receivables of SmallBite Ltd. iii. The total impairment on Goodwill now stands at $2 000. Required: Prepare a Consolidated Statement of Financial Position for MegaBite Ltd Group as at 2018 November 30.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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