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hi mike can you tell me the difference between these 2 question
March/June 2017 : On that date, further consideration was also issued
to the shareholders of Latree Co in the form of a $100 8% loan note for every 100 shares acquired in Latree Co.
None of the purchase consideration, nor the outstanding interest on the loan notes at 31 March 20X6, has yet been
recorded by Dargent Co. respectively.June 2013: In addition, Paradigm issued to the shareholders of
Strata a $100 10% loan note for every 1,000 shares it acquired in Strata. Paradigm has not recorded any of the
purchase consideration, although it does have other 10% loan notes already in issueMy question related to march/June 2017 #32& June 2013 #1 In the retain earnings for the parent is calculate for loan note interest for 2017 march/June but it is not calculate for 2013 June
Paradigm is a strange question in that it’s not immediately apparent whether the loan note interest has been paid and already deducted in arriving at the retained earnings for the year
Given the lack of information it’s not available to make that necessary assumption that the interest has not been accounted for although common sense would dictate that, if the loan notes themselves have not been accounted for, then it’s unlikely that the interest has been recorded
My initial reaction is that the interest has not been recorded and should nave been adjusted in arriving at consolidated retained earnings and consolidated current liabilities
OK?
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