Phlaire acquired 70 percent of Syanne on July 1, 20x5. Based on the purchase price, proportionate goodwill of P450,000 was recognized. The 20x6 financial statements are as follows: Phlaire Syanne Income Statement P 1,200,000 (802,500) (150,000) 52,500 300.000 P 150.000 Sales 900,000 (600,000) (150,000) Cost of Goods Sold Operating Expenses Dividend Income -0- Net Income Statement of Accumulated Profits P 1,275,000 Accumulated Profits, January 1, 2016 Net Income P1,950,000 300,000 150,000 75,000) P2,100.000 P 1,350,000 Dividends Paid (150,000) Accumulated Profits, December 31, 2016 Statement of Financial Position TIA P 450,000 1,050,000 Cash and Receivables 600,000 Inventory Investment in Syanne 447,000 1,353,000 1,500,000 -0- Fixed Assets 900,000 Accumulated Depreciation Total Assets (450,000) P3.450,000 P 2,100.000 (300,000) AGUIO CIT P 600,000 150,000 P 900,000 450,000 2,100 000 P 3.450,000 P 2.100,000 Liabilities Ordinary share Accumulated profits Total Liabilities and Equity 1,350,000 Phlaire sells inventory costing P108,000 to Syanne during 20x5 for P180,000. At year's end, 30 percent is left. Syanne sells inventory costing P300,000 to Phlaire during 201x for P375,000. At year's end, 20 percent is left.

Phlaire acquired 70 percent of Syanne on July 1, 20x5. Based on the purchase price, proportionate goodwill of P450,000 was recognized. The 20x6 financial statements are as follows: Phlaire Syanne Income Statement P 1,200,000 (802,500) (150,000) 52,500 300.000 P 150.000 Sales 900,000 (600,000) (150,000) Cost of Goods Sold Operating Expenses Dividend Income -0- Net Income Statement of Accumulated Profits P 1,275,000 Accumulated Profits, January 1, 2016 Net Income P1,950,000 300,000 150,000 75,000) P2,100.000 P 1,350,000 Dividends Paid (150,000) Accumulated Profits, December 31, 2016 Statement of Financial Position TIA P 450,000 1,050,000 Cash and Receivables 600,000 Inventory Investment in Syanne 447,000 1,353,000 1,500,000 -0- Fixed Assets 900,000 Accumulated Depreciation Total Assets (450,000) P3.450,000 P 2,100.000 (300,000) AGUIO CIT P 600,000 150,000 P 900,000 450,000 2,100 000 P 3.450,000 P 2.100,000 Liabilities Ordinary share Accumulated profits Total Liabilities and Equity 1,350,000 Phlaire sells inventory costing P108,000 to Syanne during 20x5 for P180,000. At year's end, 30 percent is left. Syanne sells inventory costing P300,000 to Phlaire during 201x for P375,000. At year's end, 20 percent is left.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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