On January 1, 20X2, Tanangonan Company acquired all the assets and assumed all the liabilities of Ong Company. In exchange for the net assets of Ong, Tanangonan gave its bond payable with a maturity value of P600,000 with a stated rate of 10% interest payable semiannually on June 30 and December 31. The said bond will also mature on January 1, 20X2, and has a yield rate of 12%.Required:1. Determine the goodwill or gain on bargain purchase from the above acquisition.2. Give the adjusting entries that will be made on the book of Tanangonan.3. Prepare the Statement of Financial Position (SFP) of Tanangonan after the merger.see the given picture for The Statement of Financial Position (SFP) of both companies as of January 1, 20X2 were as follows: The Statement of Financial Position (SFP) of both companies as of January 1, 20X2 were as follows:TanangonanBook ValueOngBook ValueFair ValueCashP250,000352,700848,300700,000950,000(325,000)262,750(70,050)P2,968,700P114,000150,000232,000100,000410,000(170,500)136,450(90,450)P881,500P114,000135,000310,000315,00054,900ReceivablesInventoriesLandBuildingsAccumulated Depreciation - BuildingsEquipmentAccumulated Depreciation - Equipment39,450Total AssetsP968,350P95,300300,000P95,300260,000Current LiabilitiesP292,700Bond PayableCommon Stock, P15 par valueCommon Stock, P5 par valueOther Contributed CapitalRetained EarningsTotal Equities1,200,000950,000526,000P2,968,750236,500170,00079,700P881,500

Determine the goodwill or gain on bargain purchase from the above acquisition. 2. Give the adjusting entries that will be made on the book of Tanangonan. 3. Prepare the Statement of Financial Position (SFP) of Tanangonan after the merger. see the given picture for The Statement of Financial Position (SFP) of both companies as of January 1, 20X2 were as follows:

Determine the goodwill or gain on bargain purchase from the above acquisition. 2. Give the adjusting entries that will be made on the book of Tanangonan. 3. Prepare the Statement of Financial Position (SFP) of Tanangonan after the merger. see the given picture for The Statement of Financial Position (SFP) of both companies as of January 1, 20X2 were as follows:

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.4.14P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...

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