Accounting Practices Related to Financial Statements, Account Liquidation and Journalizing

Working on assignment related to financial statements, account liquidation, and journal elimination. Sample questions on the material can be found as attached. Need assistance in understanding the underlying concepts and examples that will help complete the questions. Solution Preview
Consolidated financial Statements
The main purpose of a company is to grow financially, so most often in practice companies will purchase other companies. This is a form of investment and allows a company to extend its services and products to existing and new clientele, and also allows a company to grow geographically [more branches]. So then a company will purchase equity of another existing company, and depending on the amount of equity purchased the purchasing company can either own substantially enough shares to control the purchased company or have significant influence within that company or just own shares and have no control over the specific company.

If company-A purchases enough shares to control company-B [51% +], then company-A is called the ‘Parent’ and company-B is called the ‘subsidiary’ and any other remaining investors are called “Non-Controlling Interest”.
Purchasing shares from a company means that one is acquiring the equity of that company, and according to the accounting equation – we know that Assets = Equity + Liabilities, thus Equity = Assets – Liabilities. So essentially when Company-A invests in Company-B, it is acquiring the equity of that company which is in essences the Assets – Liabilities of that company.

Don't use plagiarized sources. Get Your Custom Essay on
Accounting Practices Related to Financial Statements, Account Liquidation and Journalizing
From $10/Page
Order Essay

Unit 3 and Unit 5
The purpose of consolidating financial statements of a Group of companies (collection of parents and subsidiaries) is to express to the owners of the parent company how well or bad the company is doing. When consolidating financial statements a parent cannot include its investment in its subsidiary within the consolidated financial statements of the group, because it will be double counting figures. Think about it this way, A invests in B – so now A and B are essentially one entity because they form a group of companies. So now, A cannot include its investment in B within its consolidated financial statements because then it will be showing an investment within its self, and companies cannot invest in within themselves. So the investment gets eliminated through the pro forma journals.
Here is an example of a pro forma journal that eliminates an investment in subsidiary.
Ordinary Shares XXXXX
Retained Earnings XXXXX
Revaluation Surplus XXXXX
Investment in subsidiary XXXX
Non-controlling interest XXXX

So as you can see elimination journals are the inverse of the original journal – they eliminate transactions. (This principle also applies to Intra group transactions)

When an asset is under or over valued at date of acquisition then necessary adjustments have to be made to reflect the true value of the companies’ assets. If A purchases B at a price more than what it is worth (after values have been adjusted and are fairly presented) then the residual is called “Goodwill” and if A purchases B at less than what it’s worth then the deficit is called “Gain on Bargain purchase”. If either of the two elements stated above exist then they shall be presented on the consolidated statements.

Intra group …

Solution Summary
The expert examines financial statement, account liquidations and journalizations..To continue with the answer check on mycoursewriter.com/

MyCourseWriter
Order NOW For A 35% Discount!
Pages (550 words)
Approximate price: -

Why Choose Us

Quality Homework Writing

Do you need to ace your test? We have qualified writers to assist you in writing 100% quality homework writing. Mycoursewriter offers students unique and personalized custom papers that help them in getting good grades. Our academic experts will assist you with your dissertation papers, thesis writing, research papers, term papers, and case study homework help. Our writers are experienced and have perfected the art of crafting the best essay writing papers regardless of your academic level. Order now and get our superb homework writing services.

Expert Academic Writers

A student needs professional assistance outside class time. Before hiring our writers, they undergo thorough tests and strict educational backgrounds. After passing a test, our writers undergo training to ensure they deliver expert professional papers to our customers. We ensure they meet the timely delivery of papers and follow our customers' provided instructions. Every writer is an ENL writer and is from the USA, Canada, UK, or Australia. Our experts approach papers effectively depending on their area of specialization.

Affordable Price Guarantees

Is the deal too good to be true? Mycoursewriter is the most affordable assignment help website on the market. We consider students' daily needs for academic help. Our paper costs are reasonably priced to approximately 90% of students around the globe. Our main aim is to ensure students achieve academic excellence, and we believe inconsiderable prices should not hinder students from getting quality homework writing help. In case of any dissatisfaction, we offer unlimited revisions and rewrites without extra charges.

Timely delivery of papers

Tight deadline? Is your paper due in the next few hours? Worry no more. Our writers are here for your rescue. Many college students find it hard to balance their social and academic life and get caught up with academic deadlines. Drafting your paper at the last minute does not allow you to conduct extensive research and craft the correct answers. We have expert writers ready to work on your assignment writing. Urgent writing services are the ultimate solutions you need. We guarantee you timely delivery of papers at your convenience and specified time delivery of the customer.

100% Original Tasks

The ultimate deal-breaker in achieving good grades is submitting imitative papers. Plagiarism is a breach of examination standards and has serious consequences. Students need to deliver papers written in their understanding by paraphrasing their research findings and relevant citations. Our expert's primary consideration is providing free plagiarized papers that meet the lecturers' requirements. Our editors will proofread your paper before delivery ad ensure your papers will not be substandard. We guarantee extreme originality, and in case of any customer concerns, we offer a plagiarism report.

All Round the clock Customer Support

Our website is user-friendly and super useful! Mycoursewriter is the most trusted online writing website always available to provide you with assignment writing services that you need. Our primary concern is meeting customer need specifications by our friendly customer support team that Is available all the time. Our website usability is self-learnable but in case of any problem, feel free to contact us directly through our website email: support@mycourserwiter.com. We have diligently satisfied thousands of students, and you can witness this on our sites' review page.

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Advantages of Using Our Assignment writing Services

Mycoursewriter welcomes you for superb essay writing services. We are a legit site offering help with your most challenging homework writing assignments at affordable prices. Your essay paper will be assigned to a professional writer who will craft the paper from scratch according to your provided instructions.

Essays

Essay Writing and Proofreading Services

Essay writing is a common assignment writing for most college students. It takes a lot of time to craft a complete perfect essay. Mycourserwiter offers the best essay writing and proofreading services for most college students. Your paper is assigned to an expert writer who does thorough research on fresh ideas and personalizes your essay paper according to your assignment writing guidelines. Our essays are entirely exceptional and undergo a strict procedure that includes papers free from plagiarism and thorough proofreading.

Admissions

Admission and Business Papers

Writing an admission paper is not every student's desire, and this should not hinder any student from earning an admission. Writing a perfect personal statement to earn a position in a dream school or job can be stressful. Personal statements should display a high level of confidence and uniqueness. Admission essays require you to have a vast knowledge of the current happenings in the world and knowhow of the business world. We have qualified writers with skills who will write your admission paper through comprehensive research. All you have to do is provide us with little details about yourself, instructions and our writers will craft a perfect paper for you.

Editing

Editing and Proofreading

Mycoursewriter offers you assignment writing services free from grammatical and formatting mistakes. An error-free paper is significant in scoring the desired maximum grades. We have a team of editors who will go through your paper after our expert writers have delivered their fully crafted papers. Our writers will cover all the aspects of your paper instructions, such as fonts, spacing, and educational formats. Our team of editors will check through your paper to make sure it meets the formatting style provided in the paper instructions. Under no circumstances will a poorly formatted paper will be forwarded to you as our team of editors will ensure careful proofreading.

Coursework

Technical Papers

Assignment writing is part of a learning process, and one may not have the knowledge to answer all questions correctly. This should not be a stress to you as we have qualified essay writing experts to help you. Our qualified writers are holders of PhDs, Degrees, and Masters in different areas of study and can handle any papers regardless of the complexity. Multiple assignments may be challenging to finish on time. Our skilled professional writers are here to assist you in crafting all the correct answers for your assignment. Stop stressing about your homework writing and place an order with us, and our expert writers will provide you with the best assignment help.