Prepare the necessary entries to be made by both companies for 20X1 and 20X2. • Allocate the consolidated comprehensive income to the controlling and non-controlling interest for 20X1 and 20X2.
On January 2, 20X1, Padre Corporation (PC) purchases 80% of the common stock of Son Company (SC) for P300,000. SC’s has P200,000 and P50,000 book value of common stock and
In 20X2, PC sold another merchandise to SC for P30,000. Of the said merchandise, P8,000 remains in the ending inventory of 20X2.
PC has P50,000 and P80,000 comprehensive income from its operations on 20X1 and 20X2, respectively. On the other hand, SC has P20,000 and P50,000 comprehensive income from its operations for 20X1 and 20X2.
Required:
• Prepare the necessary entries to be made by both companies for 20X1 and 20X2.
• Allocate the consolidated comprehensive income to the controlling and non-controlling interest for 20X1 and 20X2.
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