ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition- date fair value on intangible of P300,000 was recognized and is being amortized at the rate of P10,000 per year. The 2022 financial statements follows : АВС EFG Sales 800,000 600,000 Cost of goods sold Operating Expenses (535,000 ) (100,000) (400,000) (100,000) Dividend Income 35,000 Net Income 200,000 100, 000 Retained Earnings , beg 1,300,000 850,000 Net Income 200,000 100,000 Dividend Paid (100,000) (50,000) Retained Earnings , end 1,400,000 900,000 Cash and Receivables 400,000 300,000 Inventory 298,000 700,000 902,000 1,000,000 Investment in EFG Fixed Assets 600,000 Accumulated Depreciation (300,000) (200,000) Totals 2,300,000 1,400,000 Labilities 600,000 400,000 Ordinary Share 300,000 100,000 Accumulated Profit 1,400,000 900,000 Totals 2,300,000 1,400,000 • EFG sold ABC inventory costing P72,000 during the last six months of 2021 for P120,000. At year-end 30% remained. • EFG sells ABC inventory costing P200,000 during 2022 for P250,000. At year- end, 20% is left.
ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition- date fair value on intangible of P300,000 was recognized and is being amortized at the rate of P10,000 per year. The 2022 financial statements follows : АВС EFG Sales 800,000 600,000 Cost of goods sold Operating Expenses (535,000 ) (100,000) (400,000) (100,000) Dividend Income 35,000 Net Income 200,000 100, 000 Retained Earnings , beg 1,300,000 850,000 Net Income 200,000 100,000 Dividend Paid (100,000) (50,000) Retained Earnings , end 1,400,000 900,000 Cash and Receivables 400,000 300,000 Inventory 298,000 700,000 902,000 1,000,000 Investment in EFG Fixed Assets 600,000 Accumulated Depreciation (300,000) (200,000) Totals 2,300,000 1,400,000 Labilities 600,000 400,000 Ordinary Share 300,000 100,000 Accumulated Profit 1,400,000 900,000 Totals 2,300,000 1,400,000 • EFG sold ABC inventory costing P72,000 during the last six months of 2021 for P120,000. At year-end 30% remained. • EFG sells ABC inventory costing P200,000 during 2022 for P250,000. At year- end, 20% is left.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 11MCQ
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Question
COMPUTE FOR CONSOLIDATED ASSET FOR 2020.
Transcribed Image Text:ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition- date fair
value on intangible of P300,000 was recognized and is being amortized at the rate of
P10,000 per year. The 2022 financial statements follows :
АВС
EFG
Sales
800,000
600,000
Cost of goods sold
Operating Expenses
(535,000 )
(100,000)
(400,000)
(100,000)
Dividend Income
35,000
Net Income
200,000
100, 000
Retained Earnings , beg
1,300,000
850,000
Net Income
200,000
100,000
Dividend Paid
(100,000)
(50,000)
Retained Earnings , end
1,400,000
900,000
Cash and Receivables
400,000
300,000
Inventory
298,000
700,000
902,000
1,000,000
Investment in EFG
Fixed Assets
600,000
Accumulated Depreciation
(300,000)
(200,000)
Totals
2,300,000
1,400,000
Labilities
600,000
400,000
Ordinary Share
300,000
100,000
Accumulated Profit
1,400,000
900,000
Totals
2,300,000
1,400,000
• EFG sold ABC inventory costing P72,000 during the last six months of 2021 for
P120,000. At year-end 30% remained.
• EFG sells ABC inventory costing P200,000 during 2022 for P250,000. At year-
end, 20% is left.
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