Popoy Corporation (PC) purchased all the common shares of Sia Company (SC) on January 1, 20X1, for P180,000 cash. The fair value and carrying amounts of SC's net identifiable assets are equal. The trial balances for both companies on December 31, 20x1 are as follows: Sia Company Debit Popoy Corporation Debit Credit Credit Cash 15,000 5,000 Accounts Receivable Inventory Depreciable Assets, net Investment in Samantha Company Operating Expenses 30,000 70,000 70,000 325,000 180,000 25,000 105,000 60,000 225,000 15,000 75,000 Cost of Goods Sold Dividends Declared 40,000 10,500 Accounts Payable Notes Payable Common Stock 50,000 99,500 200,000 40,500 120,000 100,000 Retained Earnings Sales 230,000 80,000 200,000 120,000 Dividend Income 10,500 790,000 790,000 460,500 460,500 Required: Prepare the set of consolidated financial statements at the end of the year. Follow the process given in the handout.
Popoy Corporation (PC) purchased all the common shares of Sia Company (SC) on January 1, 20X1, for P180,000 cash. The fair value and carrying amounts of SC's net identifiable assets are equal. The trial balances for both companies on December 31, 20x1 are as follows: Sia Company Debit Popoy Corporation Debit Credit Credit Cash 15,000 5,000 Accounts Receivable Inventory Depreciable Assets, net Investment in Samantha Company Operating Expenses 30,000 70,000 70,000 325,000 180,000 25,000 105,000 60,000 225,000 15,000 75,000 Cost of Goods Sold Dividends Declared 40,000 10,500 Accounts Payable Notes Payable Common Stock 50,000 99,500 200,000 40,500 120,000 100,000 Retained Earnings Sales 230,000 80,000 200,000 120,000 Dividend Income 10,500 790,000 790,000 460,500 460,500 Required: Prepare the set of consolidated financial statements at the end of the year. Follow the process given in the handout.
Chapter6: Corporations: Redemptions And Liquidations
Section: Chapter Questions
Problem 63P
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Transcribed Image Text:Popoy Corporation (PC) purchased all the common shares of Sia Company (SC) on January 1, 20X1, for
P180,000 cash. The fair value and carrying amounts of SC's net identifiable assets are equal. The trial balances
for both companies on December 31, 20x1 are as follows:
Popoy Corporation
Debit
Sia Company
Credit
Debit
Credit
Cash
15,000
30,000
70,000
325,000
5,000
70,000
60,000
225,000
Accounts Receivable
Inventory
Depreciable Assets, net
Investment in Samantha Company
180,000
25,000
Operating Expenses
Cost of Goods Sold
15,000
105,000
75,000
Dividends Declared
40,000
10,500
Accounts Payable
Notes Payable
Common Stock
Retained Earnings
Sales
50,000
40,500
120,000
100,000
80,000
120,000
99,500
200,000
230,000
200,000
10,500
790,000 790,000
Dividend Income
460,500 460,500
Required: Prepare the set of consolidated financial statements at the end of the year. Follow the process given
in the handout.
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