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On January 1, 20x2, Pol Inc. issued 25,000 shares of its P10 par value common stock for 80% of the outstanding shares of Sci Company. The fair value of Pol Inc. stock is P28. Sci Company (SC) measures non-controlling interest (NCI) at fair value. Given below are the statements of financial position (SFP) of the companies before the acquisition: Pol Inc. Statement of Financial Position January 1, 20X2 Assets Liabilities and Equity Cash Accounts Receivable Inventory Land P200,000 Accounts Payable 185,000 Bonds Payable 190,000 Common Stock, P10 par value 300,000 Additional Paid-in Capital (APIC) 740,000 Retained Eamings 420.000 Total Liabilities and Equity P2,035.000 P210,000 420,000 400,000 500,000 Building, net of depreciation Equipment, net of depreciation Total Assets 505,000 P2,035,000 Sci Company Statement of Financial Position January 1, 20X2 Book Value Fair Value Accounts Receivable Inventory Land P55,000 125,000 90,000 320,000 130,000 P720.000 P1,135.000 P55,000 150,000 130,000 500,000 300,000 Building, net of depreciation Equipment, net of depreciation Total Assets Accounts Payable Bonds Payable Common Stock, P2 par value Additional Paid-lIn Capital Retained Earnings Total Liabilities and Equity P160,000 240,000 40,000 160,000 120,000 P160,000 240,000 P720.000 Required: Prepare the consolidated statement of financial position on the date of acquisition by showing the consolidation procedures.

On January 1, 20x2, Pol Inc. issued 25,000 shares of its P10 par value common stock for 80% of the outstanding shares of Sci Company. The fair value of Pol Inc. stock is P28. Sci Company (SC) measures non-controlling interest (NCI) at fair value. Given below are the statements of financial position (SFP) of the companies before the acquisition: Pol Inc. Statement of Financial Position January 1, 20X2 Assets Liabilities and Equity Cash Accounts Receivable Inventory Land P200,000 Accounts Payable 185,000 Bonds Payable 190,000 Common Stock, P10 par value 300,000 Additional Paid-in Capital (APIC) 740,000 Retained Eamings 420.000 Total Liabilities and Equity P2,035.000 P210,000 420,000 400,000 500,000 Building, net of depreciation Equipment, net of depreciation Total Assets 505,000 P2,035,000 Sci Company Statement of Financial Position January 1, 20X2 Book Value Fair Value Accounts Receivable Inventory Land P55,000 125,000 90,000 320,000 130,000 P720.000 P1,135.000 P55,000 150,000 130,000 500,000 300,000 Building, net of depreciation Equipment, net of depreciation Total Assets Accounts Payable Bonds Payable Common Stock, P2 par value Additional Paid-lIn Capital Retained Earnings Total Liabilities and Equity P160,000 240,000 40,000 160,000 120,000 P160,000 240,000 P720.000 Required: Prepare the consolidated statement of financial position on the date of acquisition by showing the consolidation procedures.

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 24E
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2. On January 1, 20X2, Pol Inc. issued 25,000 shares of its P10 par value common stock for 80% of the outstanding shares of Sci Company. The fair value of Pol Inc. stock is P28. Sci Company (SC) measures non-controlling interest (NCI) at fair value. Given below are the statements of financial position (SFP) of the companies before the acquisition: Pol Inc. Statement of Financial Position January 1, 20X2 Assets Liabilities and Equity P200,000 Accounts Payable 185,000 Bonds Payable 190,000 Common Stock, P10 par value 300,000 Additional Paid-In Capital (APIC) 740,000 Retained Eamings 420.000 Total Liabilities and Equity P2,035.000 Cash Accounts Receivable P210,000 420,000 400,000 500,000 505,000 P2,035,000 Inventory Land Building, net of depreciation Equipment, net of depreciation Total Assets Sci Company Statement of Financial Position January 1, 20X2 Book Value Fair Value P55,000 125,000 90,000 320,000 130,000 P720,000 P1.135.000 Accounts Receivable P55,000 150,000 130,000 500,000 300,000 Inventory Land Building, net of depreciation Equipment, net of depreciation Total Assets Accounts Payable Bonds Payable Common Stock, P2 par value Additional Paid-In Capital Retained Earnings Total Liabilities and Equity P160,000 240,000 40,000 160,000 120,000 P160,000 240,000 P720,000 Required: Prepare the consolidated statement of financial position on the date of acquisition by showing the consolidation procedures.
Transcribed Image Text:2. On January 1, 20X2, Pol Inc. issued 25,000 shares of its P10 par value common stock for 80% of the outstanding shares of Sci Company. The fair value of Pol Inc. stock is P28. Sci Company (SC) measures non-controlling interest (NCI) at fair value. Given below are the statements of financial position (SFP) of the companies before the acquisition: Pol Inc. Statement of Financial Position January 1, 20X2 Assets Liabilities and Equity P200,000 Accounts Payable 185,000 Bonds Payable 190,000 Common Stock, P10 par value 300,000 Additional Paid-In Capital (APIC) 740,000 Retained Eamings 420.000 Total Liabilities and Equity P2,035.000 Cash Accounts Receivable P210,000 420,000 400,000 500,000 505,000 P2,035,000 Inventory Land Building, net of depreciation Equipment, net of depreciation Total Assets Sci Company Statement of Financial Position January 1, 20X2 Book Value Fair Value P55,000 125,000 90,000 320,000 130,000 P720,000 P1.135.000 Accounts Receivable P55,000 150,000 130,000 500,000 300,000 Inventory Land Building, net of depreciation Equipment, net of depreciation Total Assets Accounts Payable Bonds Payable Common Stock, P2 par value Additional Paid-In Capital Retained Earnings Total Liabilities and Equity P160,000 240,000 40,000 160,000 120,000 P160,000 240,000 P720,000 Required: Prepare the consolidated statement of financial position on the date of acquisition by showing the consolidation procedures.
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