On January 1, 2021, Eoeo Company acquired 16,000 shares of Fofo Corporation for P1,500,000. Commissions paid on the acquisition amounted to P15,000. Commission paid on the acquisition amounted to P15,000. On December 31, 2021, the market value per share of Fofo Company is P90. On December 31, 2022 the market value per share of Fofo's stock increases to P110. Required: Prepare all the necessary entries on 2021 and 2022 assuming the investments is 1. Financial Assets at Fair Value through Profit or Loss 2. Financial Assets at Fair Value through other Comprehensive Income

Q: On January 1, 2021, AB Company purchased 15,000 shares of C Inc. for P25 per share. A total of…

A: Solution: Purchase cost of shares = 15000*P25 + P15,000 = P390,000 Sale value of shares = 5000*P30 =…

Q: On June 30, 2021, ABC Company acquired 50,000 representing 25% ownership interest in Arthur…

A: Investment is the asset or security bought to earn returns from the same in future.

Q: Stellar Co. acquired 25% of the 500,000 shares of outstanding common stock of Overload Inc. on…

A: Securities available for sale are those debt or equity securities investments made by the company…

Q: On January 1, 2022, Bumili Co. purchased 10,000 shares of Nabili, Inc. for P1,000,000. Commission…

A: Unrealized Gain on Investment: In accounting, an unrealized gain is a rise in the value of an asset…

Q: Rome Inc. acquired 50,000 ordinary shares of Egypt Company at P120 per share. On February 14, 2020,…

A: Shareholder means the owner of the company who is holding share in its name. Right share means where…

Q: On January 2, 2021 PAMIGAY CORP paid P380,000 cash and issued 120,000 new shares of its P5 par value…

A: Calculation of Total Cash to be shown in the Consolidated Balance Sheet Cash Balance of Pamigay Corp…

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 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: At December 31, 2020, Pandora Incorporated issued 40,000 shares of its $20 par common stock for all…

A: Acquisition:- In this one company purchases the shares of another company. For this one company pays…

Q: During the year 2021, David Company purchased 1,000 shares of Goliath Company ordinary shares at…

A: Value of investment on 31 dec 2022  = (1,000-400)x200 = P120,000 Value of investment on 31 dec 2021…

Q: On January 1, 2020, Holland Corporation paid $7 per share to a group of Zeeland Corporation…

A: Here discuss about the details of the preparation of consolidation statement and its effect into the…

Q: During the year 2021, Pal Company purchased 1,000 shares of Pak Company ordinary shares at P150 per…

A: No. of shares held as on December 31, 2022:   No. of shares Shares purchased in the year 2021…

Q: On January 1, 202X, Anna Corporation (AC) acquires 60% of the equity capital of Papa Corporation. On…

A: NOTE : As per BARTLEBY guidelines, when multiple sub parts of the question are given then first…

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: On January 1, 2020, Holland Corporation paid $9 per share to a group of Zeeland Corporation…

A: Consolidated Financial Statements: It is the  group financial statements  in which the assets,…

Q: On January 1, 2022, De Lorean Company acquired 10,000 ordinary shares of Marty Company for P10 per…

A: As per International Financial Reporting Standard 9, the financial assets are measured at Fair…

Q: On January 1, 2020, Sarasota Corporation purchased 20% of the common shares of Ivanhoe Company for…

A: Journal entry Journal entry refers to an entry that is made to record the financial transactions in…

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: market values of P20 and P2,300,000, respectively. Moreover, it agreed to pay an additional P170,000…

A: Purchase Consideration is the amount paid in consideration for the fair value of net assets in…

Q: On January 2, 2021 PAMIGAY CORP paid P380,000 cash and issued 120,000 new shares of its P5 par value…

A: Consolidated financial statements are the one which are prepared when one or two subsidiaries are…

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

A: The question is based on the concept of Business Accounting.

Q: On January 1, 2021, ABC purchased 90% of the outstanding shares of JKL Company at a cost of…

A: On January 1, 2021, ABC purchased 90% of the outstanding shares of JKL Company at a cost of…

Q: On January 1, 202X, Dianne Corporation acquired the net assets of Cyril Corporation by issuing…

A: Goodwill is determined at the measurement date and it can be modified in the provisional period of…

Q: ABC Company acquired 30,000 shares out of XYZ Company's 100,000 outstanding share on January 1,2020…

A: When one company purchases the shares of another company then the profit and loss earned by the…

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: 1.)During the year 2021,David Company purchased 1,000 shares of Goliath Company ordinary shares at…

A: 1) Holding gain should David report in equity on Dec 31, 2021 :- 1,000 ordinary shares of Goliath…

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, merma Corp. purchased 80% of the outstanding shares of sand Co. at a cost of…

A: Consolidated net income is associated with parent companies and their subsidiaries. A parent company…

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 January 1, 2020, Holland Corporation paid $9 per share to a group of Zeeland Corporation…

A: Consolidated worksheet is as follows:

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

A: SOLUTION- GOODWILL IS THE VALUE OF BUSINESS THAT EXCEEDS ITS ASSETS MINUS THE LIABILITIES.

Q: On January 1, 202X, Dianne Corporation acquired the net assets of Cyril Corporation by issuing e…

A: Dianne Corporation pays Cyril Corporation in shares and cash as purchase consideration for Cyril…

Q: How much is the goodwill to be presented on the consolidated statement of financial position as of…

A: Calculation of Goodwill/ Capital Reserve to be presented on the consolidated financial statement as…

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: During the year 2021,David Company purchased 1,000 shares of Goliath Company ordinary shares at P150…

A:

Q: On January 1, 2021, Patter Corp. purchased 80% of the outstanding shares of Saturn Co. at a cost of…

A: Solution Working- 1- Amortization excess = 50000/4 =12500. 2-Inter company dividend =…

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

A: Working

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

A: SOLUTION GOODWILL IS AN INTANGIBLE ASSET THAT ACCOUNTS FOR THE EXCESS PURCHASE PRICE OF ANOTHER…

Q: Determine the amount of goodwill or gain on bargain purchase from the above transaction. Give the…

A: Goodwill is determined at the measurement date and it can be modified in the provisional period of…

Q: On January 1, 2020, Holland Corporation paid $8 per share to a group of Zeeland Corporation…

A: Parent company record the acquisition as investment in the subsidiary company in its individual…

Q: On August 31, 2020, Laida Corporation purchased all the net assets of Magtalas Corporation by…

A: Share Premium Share premium is the addition revenue which are derived in the business after issuing…

Q: What amount will be recorded as goodwill on January 1, 2020?

A: Goodwill is the amount which is occurred and takes place when the person pays more than the amount…

Q: On January 1, 202X, Anna Corporation (AC) acquires 60% of the equity capital of Papa Corporation. On…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: tely after the acquisition are shown below: Jan. 1, 2019 GRANGER Co.…

A: The Consolidated Statement of Financial Position displays the parent's resources (Assets) as well as…

Q: the outstanding shares of JKL Company at a cost of P1,632,000. On that date, JKL had P1,020,000…

A: On January 1, 2021, ABC purchased 90% of the outstanding shares of JKL Company at a cost of…

Q: On August 31, 2020, Laida Corporation purchased all the net assets of Magtalas Corporation by…

A: The share premium account balance cannot be utilized for distributing dividends but can be utilized…

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 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, 2021, ABC Co. acquired 80% interest in XYz, Inc. by issuing 5,000 shares with fair…

A: An acquisition is the process of acquiring more than 50% of shares of one company by the other…

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.