9. How much is the total consolidated assets on December 31, 2x19?10. How much is the consolidated liabilities on December 31, 2x19?11. How much is the consolidated stockholder’s equity on December 31, 2x19? On January 5, 20x9, Parent Company acquired 80% of the outstanding shares of Subsidiary Company for P350,000. Thefinancial statements of Parent and Subsidiary Company before the acquisition follow:ParentSubsidiary ParentCompany Company Value700,000300,0001,000,000500,0001,000,000500,000CashInventoryPPE100,000 100,00050,00055,000350,000 365,000200,000 200,000200,000100,000LiabilitiesOutstanding SharesRetained eamings|Financial statements for Parent and Subsidiary for the year ended December 31, 2x19 follow:AdditionalInfomation:The undervalued PPE of Subsidiary on the date of acquisition has a remaining useful life of 5-years.Subsidiary Company owes Parent Company P5,000 on December 31, 2x19. CONSOLIDATED BALANCE SHEETJANUARY 1, 20X9BALANCE SHEETCashReceivables300,000100,000650,000350,000900,000125,00030,00045,000InventoryInvestment in SubsidiaryPPE350,000Total2,300,000550,000LiabilitiesOutstanding sharesRetained earnings600,0001,000,000700,000150,000200,000200,000Total2,300,000550,000CONSOLIDATED WORKSHEETDECEMBER 31, 20X9INCOMEANDRETAINEDParentSubsidiaryCompany550,000EARNINGSDebitsCreditsCompany800,00040,000(480,000)SalesDividend incomeCost of sales(250,000)(150,000)150,000Operating expenses(60,000)300,000Net incomeRetained earnings, Jan 1, 20x19500,000(100,000)700,000100,000(50,000)200,000Dividends declaredRetained earnings endBALANCE SHEETCash300,000100,000650,000350,000900,000125,00030,00045,000ReceivablesInventoryInvestment in SubsidiaryPPE350,000Total2,300,000550,000600,0001,000,000700,000Liabilities150,000200,000Outstanding sharesRetained earnings200,000Total2,300,000550,000

The balance sheet is a statement prepared to ascertain the true position of assets and liabilities…

Answered: . How much is the total consolidated…

. How much is the total consolidated assets on December 31, 2x19? 10. How much is the consolidated liabilities on December 31, 2x19? 11. How much is the consolidated stockholder’s

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On 1 January 20X9, JB Enterprises acquired 70 per cent of the shares of Good Company. The separate condensed statements of financial position of JB Enterprises and of Good Company immediately after the acquisition appeared as shown below: (all amounts in €) JB Good Company Assets Property, plant and equipment (net) 18.750.000 2.600.000 Investment in Good Company 3.600.000 - Inventories 1.000.000 740.000 Cash 13.550.000 560.000 Trade and other receivables 4.400.000 660.000 41.300.000 4.560.000 Equity and Liabilities Share capital 10.000.000 2.000.000 Reserves 16.200.000 1.600.000 Profit for the year 20X4 1.600.000 240.000 Provisions 100.000 250.000 Current liabilities 13.400.000 470.000 41.300.000 4.560.000 Additional information (at acquisition…
On January 1, 2018, Parent Co. acquired 80% of the ordinary shares of Subsidiary Co. for P1,000,000. At the time of acquisition, Subsidiary's Ordinary shares, share premium and retained earnings were P100,000, P400,000 and P500,000 respectively. The identifiable assets and liabilities of the Subsidiary were fairly valued. The assets of the Subsidiary included goodwill of P50,000. The following income statement data were prepared by Parent and Subsidiary on December 31, 2019: Parent Subsidiary 400,000 750,000 50,000 15,000 150,000 300,000 150,000 50,000 Sales Other income Cost of goods sold Operating expenses During 2019, the Subsidiary declared dividends of P50,000. The dividend received by the parent was recorded as part of dividend income (included in other income). On January 1, 2019, Parent purchaseda machine from the subsidiary for P40,000. This was carried at Subsidiary's books at P25,000. The remaining life of the machine was 5 years. Since the purchase date, Subsidiary Co.…
Use the following information in answering the next item(s): IRON MAN CORP. acquired 80% of RUST CORP.'s outstanding shares. The statements of financial position of both entities immediately after the acquisition are shown below: IRON MAN CORP. 430,000 1,570,000 2,000,000 RUST CORP. Investment in subsidiary (at cost) 750,000 750,000 Other assets Assets Liabilities Ordinary share capital Retained earnings Liabilities and Stockholders' equity At the date of purchase, the fair value of RUST's assets was P50,000 more than the aggregate carrying amounts. Non-controlling interest is measured under the proportionate share method. 750,000 1,000,000 250,000 2,000,000 400,000 310,000 40,000 750,000 8. How much is the goodwill in the consolidated balance sheet prepared immediately after the acquisition? 110,000 120,000 С. 140,000 160,000 А. В. D. 9. In the consolidated balance sheet prepared immediately after the acquisition, the consolidated total assets should amount to: 2,910,000 2,480,000 C.…
Power Corporation acquired 70 percent of Silk Corporation’s common stock on December 31, 20x2. Balance sheet datafor the two companies immediately following acquisition follow 4. What amount of investment in Silk will be reported?A. P 0 C. P 150,500B. P 140,000 D. P 215,0005. What amount of liabilities will be reported?A. P265,000 C. P 622,000B. P 436,500 D. P 701,5006. What amount will be reported as non-controlling interest?A. P 42,000 C. P 60,900B. P 52,500 D. P 64,500
On January 1, 20x8,Parent Company purchased 80% of the outstanding shares of Subsidiary Company for P800,000. On the date of acquisition, Subsidiary Company reported Ordinary Shares of P800,000 and Retained Earnings of P200,000. Subsidiary’s Inventory was understated by P20,000; Equipment with a 5-year life was understated by P20,000, Building with an 8-year life was understated by P80,000 and land was understated by P40,000. The non-controlling interest is to be stated at fair value and the fair value of the non-controlling interest on January 1, 20x8 is P210,000. The following are taken from the books of Parent and Subsidiary for 20x8. 1) From the given data, determine the total assets as of December 31, 20x1. 2) From the given data, assuming the retained earning of Subsidiary on December 31, 20x11 is P350,000, determine the non-controlling interest to be reported in the consolidated financial statements on December 31, 20x11 assuming no changes to Subsidiary company’s ordinary…
On January 1, 20x8,Parent Company purchased 80% of the outstanding shares of Subsidiary Company for P800,000. On the date of acquisition, Subsidiary Company reported Ordinary Shares of P800,000 and Retained Earnings of P200,000. Subsidiary's Inventory was understated by P20,000; Equipment with a 5-year life was understated by P20,000, Building with an 8-year life was understated by P80,000 and land was understated by P40,000. The non-controlling interest is to be stated at fair value and the fair value of the non-controlling interest on January 1, 20x8 is P210,000. The following are taken from the books of Parent and Subsidiary for 20x8. * Parent Subsidiary Sales 2,000,000 1,500,000 350, 000 150,000 50,000 Gross Profit 550,000 200,000 100,000 Net Income Dividend Declared (to be paid on Jan 15, 20x9) Total Assets 5,000,000 4,000,000 Determine the Total Assets as of December 31, 20x8.
On January 1, 20x8,Parent Company purchased 80% of the outstanding shares of Subsidiary Company for P800,000. On the date of acquisition, Subsidiary Company reported Ordinary Shares of P800,000 and Retained Earnings of P200,000. Subsidiary’s Inventory was understated by P20,000; Equipment with a 5-year life was understated by P20,000, Building with an 8-year life was understated by P80,000 and land was understated by P40,000. The non-controlling interest is to be stated at fair value and the fair value of the non-controlling interest on January 1, 20x8 is P210,000. The following are taken from the books of Parent and Subsidiary for 20x8. 1. Determine the Non-Controlling Interest as of December 31, 20x8. 2.
On January 1, 20x8,Parent Company purchased 80% of the outstanding shares of Subsidiary Company for P800,000. On the date of acquisition, Subsidiary Company reported Ordinary Shares of P800,000 and Retained Earnings of P200,000. Subsidiary’s Inventory was understated by P20,000; Equipment with a 5-year life was understated by P20,000, Building with an 8-year life was understated by P80,000 and land was understated by P40,000. The non-controlling interest is to be stated at fair value and the fair value of the non-controlling interest on January 1, 20x8 is P210,000. The following are taken from the books of Parent and Subsidiary for 20x8: Determine the Non-Controlling Interest as of December 31, 20x8. Your answer
On January 1, 20x8, Parent Company purchased 80% of the outstanding shares of Subsidiary Company for P800,000. On the date of acquisition, Subsidiary Company reported Ordinary Shares of P800,000 and Retained Earnings of P200,000. Subsidiary’s Inventory was understated by P20,000; Equipment with a 5-year life was understated by P20,000, Building with an 8-year life was understated by P80,000 and land was understated by P40,000. The non-controlling interest is to be stated at fair value and the fair value of the non-controlling interest on January 1, 20x8 is P210,000. During the year, Parent sold goods to Subsidiary for P150,000 at a 25% mark-up and in turn purchased P200,000 of Subsidiary’s goods which Subsidiary sold at a 20% mark-up. From the goods purchased, P50,000 remain in Parent’s books at the end of the year, while P20,000 remain in Subsidiary’s books at the end of the year. 30% of the undervalued inventory of Subsidiary still remain unsold by the end of 20x8. The following are…
Mokwena Limited acquired 48% investment in Masibi Limited at R100 000. At the date of acquisition, which is 31 March2016, Masibi Limited’s statement of financial position showed the following balances:Non-current assets R692 000Current assets R44 000Non-current liabilities R268 000Current liabilities R218 000Mokwena Limited applies equity accounting for all its investments in associates and joint ventures. The financial year-endfor Mokwena Limited is on 31 March of each year.What amount will be recorded as investment in associate in Mokwena Limited’s statement of financial position as at 31March 2016?
Mokwena Limited acquired 48% investment in Masibi Limited at R100 000. At the date of acquisition, which is 31 March2016, Masibi Limited’s statement of financial position showed the following balances:Non-current assets R692 000Current assets R44 000Non-current liabilities R268 000Current liabilities R218 000Mokwena Limited applies equity accounting for all its investments in associates and joint ventures. The financial year-endfor Mokwena Limited is on 31 March of each year.What is Mokwena Limited’s share of the net assets in Masibi Limited?Select one:a.R250 000b.R353 280c.R120 000d.R100 000
The P Ltd acquires all issued capital of the S Ltd for a consideration of $1,000,000 cash and 800,000 shares eachvalued at $1.50. The summary statement of the financial position of the subsidiary company immediatelyfollowing the acquisition is:Fair value of assets acquired $2,640,000Fair value of liabilities acquired $720,000Total shareholders’ equity of the subsidiary company $800,000Retained earnings of the subsidiary company $1,120,000Required:(b) Determine the amount of goodwill (or bargain purchase) arising out of the acquisition (c) Pass the necessary consolidation entry to eliminate the subsidiary by the parent company (d) Determine the amount of goodwill (or bargain purchase) arising out of the acquisition if the purchase consideration paid was $1,000,000 cash and 400,000 shares each valued at $1.50.