Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. francis acquired 80% of cole's co. equity shares f

Francis acquired 80% of Cole's Co. equity shares for $300,000 on January 1, 2018. On...

90.2K

Verified Solution

Question

Accounting

image

Francis acquired 80% of Cole's Co. equity shares for $300,000 on January 1, 2018. On 31 December 2018 Francis sold $100,000.00 worth of goods to Cole's. These goods had cost Francis $80,000.00. On December 31, 2018, Cole still had 20% of worth of goods remaining in inventory (held at cost to Cole). The two companies draft income statements as at 31 December 2018 are shown below. Francis $'000 5,000.00 Cole's $'000 1,000.00 (600.00) 400.00 (2,900.00) 2,100.00 Revenue Cost of sales Gross profit Administrative expense Distribution costs Profit before tax (1,000.00) (700.00) 400.00 (130.00) 270.00 (200.00) (120.00) 80.00 Income tax expense Profit for the year (25.00) 55.00 Required Prepare the consolidated income statement to incorporate Francis and Cole for the year ended 31 December 2018. Note: Show all workings (20 marks)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students