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Selected information from the separate and consolidated statements of financial position and statements of comprehensive income of P Company. and its subsidiary, S Company., as of December 31, 2019, and for the year then ended is as follows: P Company S Company Consolidated Statement of financial position accounts Accounts receivable . Inventory.. Investment in S Co.. Goodwill. Noncontrolling interest.. Stockholders' equity . P 26,000 30,000 67,000 P19,000 25,000 P 42,000 50,000 30,000 10,000 154,000 50,000 154,000 Statement of comprehensive income accounts P200,000 150,000 50,000 Revenues. Cost of goods sold . Gross profit. P140,000 110,000 30,000 P300,000 225,000 75,000 Equity in earnings of S Co. Net income. P9,000 P36,000 P20,000 P36,000 Additional information During 2019, P Company sold goods to S Company at the same markup on cost that P Co uses for all sales. At December 31, 2019, S Co had not paid for all of these goods and still held 50% of them in inventory. P Company acquired its interest in S Company five years earlier (as of December 31, 2019)

Selected information from the separate and consolidated statements of financial position and statements of comprehensive income of P Company. and its subsidiary, S Company., as of December 31, 2019, and for the year then ended is as follows: P Company S Company Consolidated Statement of financial position accounts Accounts receivable . Inventory.. Investment in S Co.. Goodwill. Noncontrolling interest.. Stockholders' equity . P 26,000 30,000 67,000 P19,000 25,000 P 42,000 50,000 30,000 10,000 154,000 50,000 154,000 Statement of comprehensive income accounts P200,000 150,000 50,000 Revenues. Cost of goods sold . Gross profit. P140,000 110,000 30,000 P300,000 225,000 75,000 Equity in earnings of S Co. Net income. P9,000 P36,000 P20,000 P36,000 Additional information During 2019, P Company sold goods to S Company at the same markup on cost that P Co uses for all sales. At December 31, 2019, S Co had not paid for all of these goods and still held 50% of them in inventory. P Company acquired its interest in S Company five years earlier (as of December 31, 2019)

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 3P: Income Statement, Lower Portion Cunningham Company reports a retained earnings balance of 365,200 at...
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1) determine the carrying amount of the inventory that S Company purchased from P Company in the December 31, 2019 consolidated Statement of financial position

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Selected information from the separate and consolidated statements of financial position and statements of comprehensive income of P Company. and its subsidiary, S Company., as of December 31, 2019, and for the year then ended is as follows: P Company S Company Consolidated Statement of financial position accounts Accounts receivable . P 26,000 P19,000 25,000 P 42,000 50,000 Inventory. Investment in S Co.. 30,000 67,000 Goodwill. Noncontrolling interest. Stockholders' equity . 30,000 10,000 154,000 154,000 50,000 Statement of comprehensive income accounts P300,000 225,000 75,000 Revenues. P200,000 150,000 50,000 P140,000 110,000 30,000 Cost of goods sold.. Gross profit. P9.000 Equity in earnings of S Co. Net income.. P36,000 P20,000 P36,000 Additional information During 2019, P Company sold goods toS Company at the same markup on cost that P Co uses for all sales. At December 31, 2019, S Co had not paid for all of these goods and still held 50% of them in inventory. P Company acquired its interest in S Company five years earlier (as of December 31, 2019)
Transcribed Image Text:Selected information from the separate and consolidated statements of financial position and statements of comprehensive income of P Company. and its subsidiary, S Company., as of December 31, 2019, and for the year then ended is as follows: P Company S Company Consolidated Statement of financial position accounts Accounts receivable . P 26,000 P19,000 25,000 P 42,000 50,000 Inventory. Investment in S Co.. 30,000 67,000 Goodwill. Noncontrolling interest. Stockholders' equity . 30,000 10,000 154,000 154,000 50,000 Statement of comprehensive income accounts P300,000 225,000 75,000 Revenues. P200,000 150,000 50,000 P140,000 110,000 30,000 Cost of goods sold.. Gross profit. P9.000 Equity in earnings of S Co. Net income.. P36,000 P20,000 P36,000 Additional information During 2019, P Company sold goods toS Company at the same markup on cost that P Co uses for all sales. At December 31, 2019, S Co had not paid for all of these goods and still held 50% of them in inventory. P Company acquired its interest in S Company five years earlier (as of December 31, 2019)
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