CONSOLIDATED GROUP ACCOUNTS.

[lilian]

HI ALL, can anyone help me with this q. i am self studying and new to the subject so can you please help answer this q. please show all the workings. i really appriciate your time in doing this. thanks.

mike acquired 80% of the ordinary share capital of joyce for 160 000 and 40% of the ordinary share capital of enoch for 70 000 on 1 january 2007 when the retained earnings balances were $64000 for joyce and $24000 for enoch.

mike joyce enoch
non current assets
property, plant and equip 220 160 78
investments 230

current assets
inventories 384 234 122
trade receivables 275 166 67
cash at bank 42 10 34

equity
share capital-$1 -share 400 96 80
share premium 16 3 0
retained ernings 278 128 97

current liabilities
trade payables 457 343 124

1. on 30 november 2009 mike sold some goods to joyce for cash for $35000. these goods had originally cost $25000 and none had been sold by the year end. on the same date mike also sold goods to enoch for cash for $22000. these goods originally cost $10000 and comic had sold half by the year end.
11. on january 2007 joyce onwned some items of equipment with a book value of $45000 that had a fair value of $57000. these assets were originally purchased by joyce on 1 january 2005 and are being depriciated over 6 years.
111. cumulative impairment losses on recognised goodwill amounted to $15000 at 31 december 2009. no impairment losses have been necessary to date relating to the investment in the associate.

other information
after the acuisation of joyce and the investment in enoch the market price of mike's shares went up from 200c to 215c. the sales were 880 000 and were expected to increase by 40%.
the profit for mike during the year was 106000 and the rise expected was 30%.