On January 1, 2018 Axe Company purchased of 20% of Lax Company’s ordinary shares outstanding for 6 000 000. The acquisition cost is equal to carrying amount of the net assets acquired. During 2018 the investee  reported net income of 7 000 000 and paid cash dividend of 4 000 000.             What is the balance in investment on December 31, 2018?

Q: On January 1, 2027, Kasson Company acquired 40% of IJK Company's common stock for $183,000. Kasson…

A: IJK, is a public company which has its share available for retail investing. Therefore Kasson…

Q: On January 2, 2020, Hanz Corporation bought 30% of the outstanding ordinary shares of Eve…

A: The following computations are done for Hanz Corporation.

Q: Reported semiannual earnings of $120,000 for the first half of 2019

A: Dividend: It is the profit portion distributed among the shareholders and investors of the company.…

Q: January 2, 2020, P Company acquired 80% investment in S Company. The acquisition cost was equal to P…

A: The question is related to Consolidation. The details are as under  Share of P in S Company  = 80%…

Q: On 1 January 2019, Company P purchased 80% of the equity of Company S. The following transactions…

A: A consolidated financial statement represents the financial statement that has the assets,…

Q: On January 2, 2022, Promenade Company purchased 25% of Twilight Company’s ordinary shares; no…

A: Solution: Promenade Company purchased 25% of Twilight Company’s ordinary shares. It means Promenade…

Q: On January 1, 2018, Parent acquired 30,000 out of 100,000 outstanding ordinary shares of Sub for…

A: Since the Parent acquired 30% interest in the Sub, the Sub is an associate enterprise. Accounting…

Q: On January 1, 2019, in its first year of operation, Olson Company acquired some of the outstanding…

A: As the Oslon company acquired 25% Bryant company, which means Oslon can exercise  significant…

Q: Agustin Company has the following transactions relating to its investments during 2022. January 5 -…

A: Introduction:- The following basic information as follows under:- Shares held-for-trading means…

Q: On January 1, 2018, Parent acquired 30,000 out of 100,000 outstanding ordinary shares of Sub for…

A: When an investment in an entity increases and it is increased to the level that the investee company…

Q: According to the statements, prepare the appropriate journal entries, and calculate the differences…

A: Balance sheet shows the financial position of the entity by presenting its assets and liabilities so…

Q: On October 15, 2020, the Skyline Company received a liquidating dividend of P100,000 from David…

A: Formula: Dividend income = Total liquidating dividend x Ownership Percentage in the company.

Q: On January 1, 2020, Elite Company paid P 18,000,000 for 50,000 ordinary shares of Craze Company…

A: The total amount of investment at the end is the net value of an investment which is calculated by…

Q: MANGO Company acquired 4,000 shares of KIWI Corporation ordinary shares on April 2, 2020 at a cost…

A: The trading investment is recognized at FVTPL and any changes in their fair value are recognized in…

Q: On January 1, 2013, K Company purchased a 30 % interest in P Company for $250,000. P reported net…

A: The investor gets the share in investees profits as per the proportionate share.

Q: Agee Corporation acquired a 30% interest in Trent Company on January 1, 2018 for $490,000. At that…

A: In accordance with IAS 28 "If an entity holds 20% or more of the voting power (directly or through…

Q: MD Corp. completed the following transactions relating to investment in AO Company ordinary shares,…

A: Where shares are held as investments for short-term (current assets), the shares are recorded at…

Q: The Ludel Company acquired the net assets of the Girl Conrad Company on January 1,  2018, and made…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: On January 2, 2020, P Company acquired 80% investment in S Company. The acquisition cost was equal…

A: Retained Earnings For the consolidated retained earnings the parent company retained earnings and…

Q: On January 1, 2018, Any Company paid P18,000,000 for 50,000 ordinary shares of Josh Company which…

A: Solution: Investment balance on Dec 31, 2018 = cash paid for investment + share in net income -…

Q: On January 1, 2018, Parent acquired 30,000 out of 100,000 outstanding ordinary shares of Sub for…

A: As per PFRS 3, Business combination, On acquisition of control, to adopt the acquisition method of…

Q: On January 1, 2018, Parent acquired 30,000 out of 100,000 outstanding ordinary shares of Sub for…

A: Here,  Parent acquired 30% interest in Subsidiary on January 1, 2018. Since the parent acquired…

Q: On January 1, 2021, Kendall Inc. purchased 25,000 shares of Kylie Company at a cost per share of…

A: If a company purchases more than 20% stocks of the other company and has significant influence over…

Q: On January 1, 2018, Parent acquired 30,000 out of 100,000 outstanding ordinary shares of Sub for…

A: Working note: Computation of fair value of the existing investment on July 1, 2018: Fair value of…

Q: On April 1, 2018, Gangnam Company purchased 25,000 ordinary shares of Psy Inc. at an amount that…

A: Psy Inc is an associate enterprise of Gangnam Company since it is holding 25% (25,000/100,000) of…

Q: On January 1, 2020, Jumper Co. acquired all of the common stock of Cable Corp. for $540,000. Annual…

A: Investment in common stock means purchasing of common stock of the company. The company generally…

Q: P Corporation purchased 60% of the shares of S Corporation on January 01, 2019 for P2,200,000. On…

A: Introduction Consolidated retained earnings are same as retained earning it is shown under a…

Q: On April 1, 2019, Tagaytay Company purchased 25,000 ordinary shares of Sulo Co. at P180 per share, a…

A: Here in this problems which describe the gain which are arised at the time of sale of ordinary…

Q: Agee Corporation acquired a 30% interest in Trent Company on January 1, 2018 for $490,000. At that…

A: Shareholder's equity are also called as Stockholder's equity and it is the remaining amount the…

Q: P Corporation purchased 60% of the shares of S Corporation on January 01, 2019 for P2,200,000. On…

A: Working

Q: Omega Company acquired 20,000 shares of Zion Company on January 1, 2019 at P150 per share. Zion…

A: Since you have asked a question with multiple sub parts, we will answer the first 3 sub parts of the…

Q: On January 1, 2019, Lallo Company purchased 15% of Vintar Company’s ordinary shares for P20,000,000.…

A: Income from investment reported in income statement for the year ended December 31, 2020 = Total…

Q: On October 15, 2020, the Liza Company received a liquidating dividend of P100,000 from Edward…

A: Equity method of accounting is followed when the holding company has a significant influence in…

Q: Jon company owns two financial investments in the shares of listed companies. With the following…

A: The details of investment of a company  are as follows:  Investment  1 – Acquired on September 1,…

Q: On January 1, 2018, Parent acquired 30,000 out of 100,000 outstanding ordinary shares of Sub for…

A: SOLUTION WORKING- HIGHER BETWEEN TWO: FAIR VALUE = 50000. FAIR VALUE PROPORTIONATE SHARE…

Q: Pod Company purchased 25% of the outstanding ordinary shares of Jobs, Inc. and subsequently used the…

A: Under equity method  for the investment, the investor records the investees dividend and net income…

Q: Bramble Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31,…

A: Investment at fair value = no. of shares x  fair value per share = 49,800 shares x $29 per share =…

Q: Andrew Company purchased 800 ordinary shares of Valley Industries as a trading investment for…

A: This question deals with the calculation of unrealized gain/loss and dividend revenue to be booked…

Q: At the beginning of 2022, CPA Company purchased 20% of ACCA Corp’s ordinary shares outstanding for…

A: The equity method refers to an accounting method employed to compute and report the income on the…

Q: Station Land Manufacturing acquired a 30% interest in the outstanding stock of Performer Fiberglass…

A: Step 1 Investment in control when one entity acquires more  the 50% voting right or controlling…

Q: On April 2, 2020, enson Ltd. acquired 2,500 shares of Lam Corp. for $5o,000: ihts investment…

A: FA through FVTPL A/c Dr   $ 50000        To Bank A/c                          $ 50000 {Being FA…

Q: On July 1, 2020 Blush Company purchased 20% of the when the fair value of net assets was…

A: Investment: It is an asset or item which is purchased and held to generate income or for…

Q: On April 1, 2019, Tagaytay Company purchased 25,000 ordinary shares of Sulo Co. at P180 per share, a…

A: Share represents the ownership claim on the company. It is a share part of the share capital. The…

Q: On January 1, 2023, Evans Company purchased 40% of Farley Corporation’s 800,000 outstanding shares…

A: Journal entry: A journal entry is used to record day-to-day transactions of the business by debiting…

Q: On January 1, 2020, Santos Ltd. purchased 30% of Yardley Co.’s 50,000 outstanding common shares at a…

A: Purchased 30% 50,000 outstanding common shares of Yardley Co.’s at $20 per share Yardley paid cash…

Q: On 30 June 2017, P Co pays £50,000 cash to acquire 70% of the ordinary shares of S Co. The draft…

A: Answer 1:

Q: On January 1, 2021, Point, Inc. purchased 10% of lona Co.'s common stock. Point purchased additional…

A: Answer -   The amount of investment income to be reported in the year 1 income statement - When an…

Q: On March 1, 2022, Dolor Company purchased 5,000 shares of Susan Incorporated paying P12 each share…

A: As per IAS 39, Financial instruments recognition and measurement,  Their is an irrevocable…

Q: On January 1, 2018, BLEED Inc. acquired 10% interest in an investee for P3,000,000, The investment…

A: Investments held for trading purpose- Investments that are held for trading are measured at fair…

Q: MD Corp. completed the following transactions relating to investment in AO Company ordinary sha…

A: When shares for investment are purchased, they are recorded at the cost. At the end of every…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.