Pop Corporation (PC) purchased 75% of the voting stock of Samantha Company (SC) on January 1, 20X1 for P225,000. The non-controlling interest (NCI) is measured on a fair-value basis, and the carrying and fair value of SC's identifiable net assets are equal. Given below are the trial balances of the companies as of December 31, 20X1. Pop Corporation Debit Credit 100,000 Samantha Company Debit Credit 110,000 Cash 80,000 150,000 Property, Plant, and Equipment (net) 300,000 225,000 325,000 Accounts Receivable 20,000 105,000 125,000 Inventory Investment in Samantha Company Cost of Goods Sod Operating Expenses Other Expenses Dividend Declared 120,000 50,000 40,000 200,000 120,000 20,000 14,000 Sales 725,000 200,000 400,000 Accounts Payable Bonds Payable Common Stock 94,000 Retained Earnings Dividend Income Total 104,500 250,000 100,000 10,500 1,390,000 1,390,000 20,000 125,000 75,000 714,000 714,000
Pop Corporation (PC) purchased 75% of the voting stock of Samantha Company (SC) on January 1, 20X1 for P225,000. The non-controlling interest (NCI) is measured on a fair-value basis, and the carrying and fair value of SC's identifiable net assets are equal. Given below are the trial balances of the companies as of December 31, 20X1. Pop Corporation Debit Credit 100,000 Samantha Company Debit Credit 110,000 Cash 80,000 150,000 Property, Plant, and Equipment (net) 300,000 225,000 325,000 Accounts Receivable 20,000 105,000 125,000 Inventory Investment in Samantha Company Cost of Goods Sod Operating Expenses Other Expenses Dividend Declared 120,000 50,000 40,000 200,000 120,000 20,000 14,000 Sales 725,000 200,000 400,000 Accounts Payable Bonds Payable Common Stock 94,000 Retained Earnings Dividend Income Total 104,500 250,000 100,000 10,500 1,390,000 1,390,000 20,000 125,000 75,000 714,000 714,000
Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations
Section: Chapter Questions
Problem 35P
Related questions
Question
Prepare the set of consolidated financial statements at the end of the year.
Transcribed Image Text:Pop Corporation (PC) purchased 75% of the voting stock of Samantha Company (SC) on January 1, 20x1 for
P225,000. The non-controlling interest (NCI) is measured on a fair-value basis, and the carrying and fair value
of SC's identifiable net assets are equal. Given below are the trial balances of the companies as of December
31, 20X1.
Pop Corporation
Debit
Credit
100,000
Samantha Company
Debit
Credit
Cash
110,000
Accounts Receivable
Inventory
Property, Plant, and Equipment (net) 300,000
Investment in Samantha Company
20,000
105,000
125,000
80,000
150,000
225,000
Cost of Goods Sold
325,000
200,000
Operating Expenses
Other Expenses
Dividend Declared
120,000
50,000
40,000
120,000
20,000
14,000
Sales
725,000
200,000
400,000
94,000
Accounts Payable
Bonds Payable
Common Stock
Retained Earnings
Dividend Income
Total
104,500
250,000
100,000
20,000
125,000
75,000
10,500
1,390,000 1,390,000
714,000 714,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 5 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning