information below relates to Rackoff Ltd and Makerne ud. On 1 Buly 2019 Rackoff Ltd...
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information below relates to Rackoff Ltd and Makerne ud. On 1 Buly 2019 Rackoff Ltd acquired all of the issued shares of Makeme Ltd for $880,000. At the acquisition date the equity of Makeme ha sorted Share capital $200,000 Reserves 300,000 Retained earnings 250,000 At the date of acquisition this equity reflected the fair values of all the identifiable assets and liabilities of Makeme Ltd with the exception of Accounts Receivable which had a fair value $10,000 greater than its carrying amount. The corporate tax rate is 30% Required: (a) Prepare the Analysis of the situation and prepare the 30 June 2020 consolidation journal entries (with narrations) relevant to the above transactions and events for the books of the parent company. marks) (8 (b) On 30 June 2020, the drafted individual financial statements of both companies are given as below. Based on the adjustment entries you have provided, complete the consolidation worksheet for 30 June 2020 provided. (12 marks)
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