Popoy Corporation (PC) purchased all the common shares of Sia Company (SC) on January 1, 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: 1, for Popoy Corporation Credit Sia Company Debit Credit Debit Cash 15,000 5,000 70,000 60,000 Accounts Receivable 30,000 70,000 Inventory Depreciable Assets, net Investment in Samantha Company Operating Expenses Cost of Goods Sold 325,000 180,000 25,000 105,000 40,000 225,000 15,000 75,000 10,500 Dividends Declared Accounts Payable Notes Payable 50,000 99,500 40,500 120,000 Common Stock 200,000 100,000 Retained Earnings Sales 230,000 200,000 10,500 790.000 80,000 120,000 Dividend Income 790.000 460,500 460,500
Popoy Corporation (PC) purchased all the common shares of Sia Company (SC) on January 1, 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: 1, for Popoy Corporation Credit Sia Company Debit Credit Debit Cash 15,000 5,000 70,000 60,000 Accounts Receivable 30,000 70,000 Inventory Depreciable Assets, net Investment in Samantha Company Operating Expenses Cost of Goods Sold 325,000 180,000 25,000 105,000 40,000 225,000 15,000 75,000 10,500 Dividends Declared Accounts Payable Notes Payable 50,000 99,500 40,500 120,000 Common Stock 200,000 100,000 Retained Earnings Sales 230,000 200,000 10,500 790.000 80,000 120,000 Dividend Income 790.000 460,500 460,500
Chapter6: Corporations: Redemptions And Liquidations
Section: Chapter Questions
Problem 63P
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Question
Prepare the set of consolidated financial statements at the end of the year.
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:
Sia Company
Debit
Popoy Corporation
Debit
Credit
Credit
Cash
Accounts Receivable
Inventory
Depreciable Assets, net
Investment in Samantha Company
Operating Expenses
Cost of Goods Sold
15,000
5,000
30,000
70,000
60,000
225,000
70,000
325,000
180,000
25,000
15,000
105,000
75,000
Dividends Declared
Accounts Payable
Notes Payable
Common Stock
40,000
10,500
50,000
99,500
200,000
230,000
200,000
10,500
40,500
120,000
100,000
Retained Earnings
Sales
80,000
120,000
Dividend Income
790,000
790,000
460,500 460,500
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