How much is the investment balance on December 31?
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How much is the investment balance on December 31?
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- Juniper Company is authorized to issue 5,000,000 shares of $2 par value common stock. In conjunction with its incorporation process and the IPO, the company has the following transaction: Mar. 1, issued 4,000 shares of stock in exchange for equipment worth $250,000. Journalize the transaction.On January 1, Parent Company acquired 90% of Subsidiary Company in exchange for 5,400 shares of P10 par common stock having a market value of P120,600. Parent and Subsidiary condensed balance sheet on January 1, were as follows: REQUIREMENTS: USING THE ADDITIONAL INFORMATION WHAT IS THE AMOUNT OF THE: a. The investment balance on December 31 b. Dividend Income for the year c. Non-controlling interest in net income on December 31On January 1, Parent Company acquired 90% of Subsidiary Company in exchange for 5,400 shares of P10 par common stock having a market value of P120,600. Parent and Subsidiary condensed balance sheet on January 1, were as follows: REQUIREMENTS:Using the proportionate basis or partial goodwill method, compute the following: 1. The amount of goodwill on January 1:A. P 2,600 C. P 14,400B. P 3,800 D. P 25,200 2. The equity holders of parent (or controlling interest) retained earnings on January 1:A. P 48,000 C. P 84,900B. P52,100 D. P 89,000 3. The consolidated retained earnings on January 1:A. P 48,000 C. P 84,900B. P52,100 D. P 89,000
- Parent Company issued 80,000 new shares of its P10 par value ordinary shares and paid cash of P2,000,000 for the 80% interest of Subsidiary Company on January 2, 2022. The share of Parent was valued at P15. The stockholders’ equity of Parent and Subsidiary at the date of acquisition were as follows (see image below).The fair value and book value of Subsidiary’s identifiable assets and liabilities were the same except for inventory which was undervalued by P50,000 and Equipment which was underdepreciated by P100,000 with remaining useful life of 10 years. The parent elected to measure NCI using fair value method. At the end of December 31, 2022, Parent reported a net income of P300,000 and paid dividends of P50,000 while Subsidiary reported a net income of P200,000 and paid dividends of P20,000 to Parent. Only 75% of the beginning inventory of Subsidiary was sold during the period. It was also determined that the goodwill was impaired and to be reported at P800,000. a. How much is the…Parent Corporation acquired 80% of the outstanding shares of Subsidiary Company on June 1, 2021 for P3,517,500. Subsidiary Company’s stockholder’s equity components at the end of this year are as follows: Ordinary shares, P100 par, P1,500,000, Share premium P675,000 and Retained Earnings P1,335,000. Non-controlling interest is measured at fair value and the fair value is P705,000. The assets of Subsidiary Company were fairly valued, except for inventories, which are overstated by P66,000, and equipment, which was understated by P90,000. Remaining useful life of equipment is 4 years. Stockholder’s equity of Parent Corporation on January 1, 2021 is composed of Ordinary shares P4,500,000, Share premium P1,050,000, Retained Earnings P3,150,000. Goodwill, if any, should be written down by P85,350 at year end. Net Income for the first year of parent is P450,000 and the net income of Subsidiary Company from the date of acquisition is P255,000. Dividends declared at the end of the year…On January 1, 20X1, P Company (PC) purchased 80% of the outstanding shares of S Company (SC) at thecost of P700,000. On that date, SC had P300,000 and P500,000 capital stock and retained earnings,respectively. The non-controlling interest (NCI) is measured on a fair-value basis.For 20X1, PC had a comprehensive income (CI) of P300,000 and paid dividends of P100,000. On the otherhand, SC reported a CI of P150,000 and paid dividends of P50,000. All of the assets and liabilities of SCompany had book values that approximately equal to their respective market values.On December 31, 20X1, PC sold a piece of equipment with a book value of P30,000 to SC for P25,000.The gain on the sale is included in the CI of PC indicated above. The equipment has a 10-year useful life.It has been used for the past five (5) years before the date of acquisition. Required:a. Prepare the journal entries that both companies should make for the year 20X1.b. Allocate the consolidated comprehensive income at the end…
- On January 1, 20x1, Pinup Corp. acquired 34,560 outstanding ordinary shares of Slug Corp. for a cash consideration of P5,158,400. The shareholders’ equity of Slug Corp. on the date of business combination is presented below: Ordinary shares P100 par value 5,760,000 Share premium 1,600,000 Retained Earnings 960,000 Pinup Corp agreed to issue additional 1,000 shares to former owners of Slug Corp if the market price per share of Pinup Corp shares increase to P120 per share. On the acquisition date, the contingent consideration was estimated at P80,000. What is the amount of non-controlling interest if it is measured at its proportionate share in the identifiable net assets of Slug Corp.?On January 1, Parent Company acquired 90% of Subsidiary Company in exchange for 5,400 shares of P10 parcommon stock having a market value of P120,600. Parent and Subsidiary condensed balance sheet on January 1,were as follows: Using the proportionate basis or partial goodwill method, compute the following:1. The amount of goodwill on January 1:A. P 2,600 C. P 14,400B. P 3,800 D. P 25,2002. The equity holders of parent (or controlling interest) retained earnings on January 1:A. P 48,000 C. P 84,900B. P52,100 D. P 89,0003. The consolidated retained earnings on January 1:A. P 48,000 C. P 84,900B. P52,100 D. P 89,000PARENT Corporation acquired 80% of the outstanding shares of SUBSIDIARY Company on June 1, 2022 for P3,517,500. SUBSIDIARY Company’s stockholder’s equity components at the end of this year are as follows; Ordinary shares, P100 par, P1,500,000. Share premium P675,000 and Retained Earnings P1,335,000. Non-controlling interest is measured at fair value and the fair value is P705,000. The assets of SUBSIDIARY were fairly valued, except for inventories, which are overstated by P66,000 and equipment, which was understated by P90,000. Remaining useful life of equipment is 4 years. Stockholder’s equity of PARENT on January 1, 2022 is composed of Ordinary shares P4,500,000, Share premium P1,050,000, Retained Earnings P3,150,000. Goodwill, if any, should be written down by P85,350 at year-end. Net Income for the first year of parent is P450,000 and the net income of subsidiary from the date of acquisition is P255,000. Dividends declared at the end of the year amounted to P120,000 and P90,000 for…
- On January 1, 2022, Pet Company purchased 80% of the shares of Sam Company for P1,000,000. The shareholders' equity of Sam Company on that date showed: Ordinary Shares - P570,000 and Retained Earnings - P490,000. Non-controlling interest is initially measured at proportionate share of subsidiary's net assets.On April 30, 2022, Pet acquired used machinery for P84,000 from Sam that was being carried in the latter's books at P105,000. The asset still has a remaining useful life of 5 years. On the other hand, on August 31, 2022, Sam purchased an equipment that was already 20% depreciated from Pet for P345,000. The original cost of this equipment was P375,000 and had a remaining life of 8 years.Net income of Pet Company and Sam Company for 2022 amounted to P360,000 and P155,000. Dividends paid totaled to P115,000 and P52,500 for Pet and Sam, respectively.Required:On the consolidated financial statements in 2022, how much would be the Net income attributable to parents' shareholders'…On January 1, 2022, Pet Company purchased 80% of the shares of Sam Company for P1,000,000. The shareholders' equity of Sam Company on that date showed: Ordinary Shares - P570,000 and Retained Earnings - P490,000. Non-controlling interest is initially measured at proportionate share of subsidiary's net assets.On April 30, 2022, Pet acquired used machinery for P84,000 from Sam that was being carried in the latter's books at P105,000. The asset still has a remaining useful life of 5 years. On the other hand, on August 31, 2022, Sam purchased an equipment that was already 20% depreciated from Pet for P345,000. The original cost of this equipment was P375,000 and had a remaining life of 8 years.Net income of Pet Company and Sam Company for 2022 amounted to P360,000 and P155,000. Dividends paid totaled to P115,000 and P52,500 for Pet and Sam, respectively.Required:On the consolidated financial statements in 2022, how much would be the Non-controlling interest in net asset of subsidiary…On January 1, 2022, Pet Company purchased 80% of the shares of Sam Company for P1,000,000. The shareholders' equity of Sam Company on that date showed: Ordinary Shares - P570,000 and Retained Earnings - P490,000. Non-controlling interest is initially measured at proportionate share of subsidiary's net assets.On April 30, 2022, Pet acquired used machinery for P84,000 from Sam that was being carried in the latter's books at P105,000. The asset still has a remaining useful life of 5 years. On the other hand, on August 31, 2022, Sam purchased an equipment that was already 20% depreciated from Pet for P345,000. The original cost of this equipment was P375,000 and had aremaining life of 8 years.Net income of Pet Company and Sam Company for 2022 amounted to P360,000 and P155,000. Dividends paid totaled to P115,000 and P52,500 for Pet and Sam, respectively.Required:On the consolidated financial statements in 2022, how much would be the carrying value of Property and Equipment?