Prepare Working Paper and consolidated balance sheet of Parent and Subsidiary Company for purchase of 70% shares of company B and also prepare Working Paper and consolidated balance sheet of Parent and Subsidiary Company if company A purchases 100% shares of company B.

Q: Parent Corporation issued on March 31, 2021 500,000 shares of its P10 par ordinary shares, P40…

A: Calculation of Consideration paid: a Number of shares outstanding of A Company 220,000.00…

Q: Assume that a Parent company owns 80% of its Subsidiary. The Parent company uses the equity method…

A: Journal entry refers to reporting of the business transactions into the books or FS (Financial…

Q: Prepare appropriate consolidation entries for 2021

A: Consolidated statements are prepared when one company acquires another company by buying more than…

Q: ush and by issuing its own shares with a fair value of P1,350,000. Parent acquired si hs, Parent…

A: The goodwill or gain on bargain purchase refers to the excess or short amount paid for the…

Q: Company Y purchases a controlling interest in Company Z on January 1, 2019. Which of the following…

A: Ans. C  Company Y's Shareholders' Equity as well as Company Y's proportional share ofCompany Z's net…

Q: True or false: When the parent acquired 100 percent of the subsidiary’s stock for book value…

A:

Q: a. Prepare the Value Analysis table and the Determination and Distribution of Excess schedule table.…

A: a. Prepare the Value Analysis table and the Determination and Distribution of Excess schedule table.

Q: Parent corporation issued on March 31, 2021 500,000 shares of its P10 par ordinary shares, P40…

A: >Goodwill is an intangible assets. >It is generally recorded when it is 'purchased'.…

Q: On January 1, 2021, Kristine Company acquired 10% of the outstanding voting shares of another…

A: Any sort of income that is earned through the investment is considered investment income. It might…

Q: On January 1, 2021, Kristine Company acquired 10% of the outstanding voting shares of another…

A: On Jan-01 , 2021 Kristine Company Acquired  10% outstanding Voting shares of another entity On…

Q: The Elf Co. acquired a 60% interest in the Pea Co. when Pea's equity comprised share capital of…

A: Non –controlling interest: Non-controlling interest can be defined as a portion of the shareholder’s…

Q: Parent Company issued 50,000 shares of P100 par ordinary share for all outstanding shares of…

A: It is pertinent to note that acquisition costs under business combination need to be expensed…

Q: its Subsidiary. The parent company uses the equity method to account for its Equity investment. On…

A: Equity  investment balance represents the shareholders' stake in the company, identified on a…

Q: arent Corporation issued on March 31, 2021 500,000 shares of its P10 par ordinary shares, P40 market…

A: Purchase consideration paid to subsidiary A = Number of shares issued by parent x Fair market value…

Q: Parent Company acquires 15% of Subsidiary Company's ordinary shares for P500,000 cash and carries…

A: Non-Controlling interest- When a company purchases the business of other entity/company partly or…

Q: of non-controlling interest in subsidiary (including the non-controlli Entity P owns 70,000 shares…

A: As per PFRS 10, when the parent company sale partial interest in a subsidiary and loss control over…

Q: Company P owns 90% of Company S’s shares. Assume Company S then purchases 2% of Company P’s…

A: Consolidated financial statement: It is combined financial statement report of holding and…

Q: Choose the correct.Arryn, Inc., owns 95 percent of Stark Corporation’s voting stock. The acquisition…

A:

Q: Company A owns 40 percent of Company B and exercisessignificant influence over the management of…

A: Introduction: Business combination: Business combination refers to the process of aggregating the…

Q: The Josh Company acquired an 80% interest in The Earl Company when Earl’s equity  comprised share…

A: Under PAS 27 Consolidated and separate financial statements, the  Earl’s retained earnings should be…

Q: Assume that Company A acquires 70 per cent of Company B for a cash price of $14 million when the…

A: Solution:- Preparation of the journal entries to record the non-controlling interest as follows…

Q: Determine the amount charged to expense:

A: The determination of amount to be charged to expense is shown hereunder : At the time of…

Q: etermine the amount of goodwill (or bargain purchase) arising out of the acquisition if the purchase…

A: Partnership: This is the form of business entity which is formed by an agreement, owned and managed…

Q: In which of the following situations should the provision of PFRS 3 be applied?     ABC Insurance…

A: Solution Concept Application of PFRS 3                 It applies to the business combination other…

Q: Papa Ltd. acquires 80% shares of Child Ltd. for $90,000 with control. The fair value of Child's net…

A: Consolidated Financial Statements: Asset, liabilities, equity, income, expenses and cash flows of a…

Q: Choose the correct. Mattoon, Inc., owns 80 percent of Effingham Company. For the current year, this…

A: Mattoon, Inc share of consolidated net income = $465,000 No. of common stock outstanding = 100,000

Q: An investor company owns 25% of the common stock of an investee company. The investor has…

A: The company makes an investment in another company to increase its earnings. The company receives…

Q: ABC Ent, purchases 90% of the outstanding voting shares of DEF Corp on January 1, 2021. On that…

A: A merger is a process when two companies are combined to form a new entity. This is normally done to…

Q: Hepner Corporation has the following stockholders’ equity accounts:The preferred stock is…

A: Goodwill: Goodwill is the good reputation developed by a company over years. This is recorded as an…

Q: On January 1, Parent Company acquired 90% of Subsidiary Company in exchange for 5,400 shares of P10…

A: SOLUTION- Goodwill is an intangible asset that is associated with the purchase of one company by…

Q: Almond acquires 80% of the share capital of Cashew on 1 August 20X6 and is preparing its group…

A: For the purpose of preparation of consolidated statement of financial position, the assets and…

Q: Assume that Company A acquires 70 per cent of Company B for a cash price of $14 million when the…

A: Company A acquired 70% of Company B Cash price paid = $14 million The share capital of Company B= $8…

Q: Parent corporation purchased 25% of the outstanding common shares of Subsidiary Limited for…

A: Journal entry is the act of keeping or making records of any transaction either economic or non…

Q: Perkins Company acquires 90 percent of the outstanding common stock of the Butterfly Corporation as…

A:

Q: January 1, 2019, Parent Company acquires 75% (750,000 ordinary shares) of Subsidiary Company for…

A: A non-controlling interest, also known as a minority interest, is an ownership position in which a…

Q: (b) Determine the amount of goodwill (or bargain purchase) arising out of the acquisition  (c) Pass…

A: c. b.

Q: Parent Company acquires 15% of Subsidiary Company’s ordinary shares for P500,000 cash and carries…

A: Goodwill: It is an intangible asset that is related with the purchase of one company for another.

Q: Parent Company acquires a subsidiary by issuing 100,000 common shares with a market value of $25 per…

A: The consolidated balance sheet refers to the statement that represents the position of the assets,…

Q: PROTEIN Ent, purchases 90% of the outstanding voting shares of FIBER Corp on January 1, 2021. On…

A:

Q: Washburn Company owns 75 percent of Metcalf Company’s outstanding common stock. During the current…

A: Consolidation of financial statements is a process of reporting the holding and subsidiary…

Q: The P Ltd acquires all issued capital of the S Ltd for a consideration of $1,000,000 cash and…

A: The consolidation of financial statements is a combination of parents' and subsidiary company's…

Q: Morningside Co. acquires, at book value, Glacier Industries on January 2, 2019, by issuing 40,000…

A: Consolidation represents the acquisition of one company by another company.

Q: Parent Company acquires 15% of Subsidiary Company’s ordinary shares for P500,000 cash and carries…

A: Business combination refers to amalgamation, acquisition of one entity by another entity by…

Q: ssume that Company A acquires 70 per cent of Company B for a cash price of $14 million when the…

A: Solution: Calculation of goodwill when NCI is measured at Fair Value: Fair value of Consideration…

Q: (a) Pass the necessary journal entry to record the acquisition (b) Determine the amount of goodwill…

A: Acquisition:-When one company purchases the business of another company by paying a considerable…

Q: What is the balance in the Equity Investment account on December 31, 2022? Select one: a. $1,070,650…

A:

Q: Entity A acquired sixty per cent of the issued equity shares of entity B by exchanging three shares…

A: Given that the entity A has acquired sixty percent of the issued equity shares of entity B. Total…

Q: Parent Company issued 50,000 shares of P100 par ordinary share for all outstanding shares of…

A: Solution Concept In the context of the business combination , the treatment of expenses shall be as…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.