a)
Concept Introduction:
When a company has two or more subsidiaries, if it maintains a single income statement with all the subsidiaries, then it is called a consolidated income statement. it's a part of the consolidated financial statement. It is a report that compiles all of a parent company's and subsidiary's actions into one document.
The amount that appears in each line in the consolidated financial statements.
b)
Concept Introduction:
When a company has two or more subsidiaries, if it maintains a single income statement with all the subsidiaries, then it is called a consolidated income statement. It’s a part of the consolidated financial statement. It is a report that compiles all of a parent company's and subsidiary's actions into one document.
:
The income tax expenses that will appear on the consolidated income statements if the company files a separate return.
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- Yes Corp., a publicly-owned corporation, is subject to the requirements for segment reporting. In its income statement for the year ended December 31, 2020, Yes reported consolidated revenues of P50,000,000, operating expenses of P47,000,000, and net income of P3,000,000. Operating expenses include payroll costs of P15,000,000. Yes's combined identifiable assets of all industry segments at December 31, 2020, were P40,000,000. In its 2020 financial statements, Yes should disclose major customer data if sales to any single customer amount to at least: * P300,000 P1,500,000 P4,000,000 P5,000,000arrow_forwardYes Corp., a publicly-owned corporation, is subject to the requirements for segment reporting. In its income statement for the year ended December 31, 2020, Yes reported consolidated revenues of P50,000,000, operating expenses of P47,000,000, and net income of P3,000,000. Operating expenses include payroll costs of P15,000,000. Yes's combined identifiable assets of all industry segments at December 31, 2020, were P40,000,000. In its 2020 financial statements, Yes should disclose major customer data if SALES to any single customer amount to at least: a. P300,000 b. P1,500,000 c. P4,000,000 d. P5,000,000arrow_forwardBelow are Lebnas Corp.’s 2019 income statement and comparative balance sheet at 12/31/2019 and 12/31/2018. Additional information: On December 31, 2018, Lebnas acquired 25% of Island ’s common stock for $609,000. On that date, the carrying value of Island’s assets and liabilities, which approximated their fair values, was $2,435,000. Island reported income of $319,000 for the year ended December 31, 2019. No dividend income was received by Lebnas on Island’s common stock during the year 2019. During 2018, Lebnas loaned $797,500 to POI , an unrelated company. POI made the first semi-annual principal repayment of $72,500, plus interest at 10%, on December 31, 2018. POI is current on the loan as of December 31, 2019. On January 2, 2019, Lebnas sold equipment costing $145,000, with a carrying amount of $44,950 for cash. On December 31, 2019, Lebnas entered into a finance lease for a new The present value of the annual rental…arrow_forward
- On June 30, 2020, Wisconsin, Inc., issued $158,100 in debt and 21,600 new shares of its $10 par value stock to Badger Company owners in exchange for all of the outstanding shares of that company. Wisconsin shares had a fair value of $40 per share. Prior to the combination, the financial statements for Wisconsin and Badger for the six-month period ending June 30, 2020, were as follows (credit balances in parentheses): Revenues Expenses Net income Retained earnings, 1/1 Net income Dividends declared Retained earnings, 6/30 Cash Receivables and inventory Patented technology (net) Equipment (net) Total assets Liabilities Common stock Additional paid-in capital Retained earnings Total liabilities and equities Accounts a.Net income b. Retained earnings. 1/1/20 e Patented technology (net) d. Goodwill Liabilities Common stock 9. Additional paid-in capital Wisconsin S (983,000) 687,000 Amounts $ (296,000) $ (892,000) (296,000) 102,250 $(1,085,750) $ 187,750 418,000 987,000 706,000 $ 2,298,750 3…arrow_forwardWaterway Corporation is preparing the comparative financial statements for the annual report to its shareholders for fiscal years ended May 31, 2020, and May 31, 2021. The income from operations for the fiscal year ended May 31, 2020, was $1,746,000 and income from operations for the fiscal year ended May 31, 2021, was $2,459,000. In both years, the company incurred a 10% interest expense on $2,370,000 of debt, an obligation that requires interest-only payments for 5 years. The company experienced a loss from discontinued operations of $591,000 on February 2021. The company uses a 20% effective tax rate for income taxes. The capital structure of Waterway Corporation on June 1, 2019, consisted of 976,000 shares of common stock outstanding and 19,700 shares of $50 par value, 6%, cumulative preferred stock. There were no preferred dividends in arrears, and the company had not issued any convertible securities, options, or warrants. On October 1, 2019, Waterway sold an additional 510,000…arrow_forwardABC Company is preparing its December 31, 2019 financial statements. The financial statements are authorized for issue on March 31, 2020. Income before 25% income tax but after consideration of these items amounted to P 5.4M. The following occurred: March 15, 2020 - dividend of 3M was declared and a contractual profit share payment of 90OT was made, based on the profit for the year ended 12/31/2019. February 1, 2020 - customer settled to the entity its due amounting to P 550,000 for the past 5 months. Allowance worth P 60T was made against this account in the financial statements. March 20, 2020 - manufacturing plant was partially destroyed by fire last December 20, 2019. Estimate of a professional regarding the damage was received on the given date which amounted to P 950T. What total before- tax amount should be recognized in profit or loss for 2019 to reflect adjusting events after the reporting period? some other amount 1,670,000 1,750,000 1,790,000arrow_forward
- On June 30, 2020, Wisconsin, Inc., issued $315,450 in debt and 18,100 new shares of its $10 par value stock to Badger Company owners in exchange for all of the outstanding shares of that company. Wisconsin shares had a fair value of $40 per share. Prior to the combination, the financial statements for Wisconsin and Badger for the six-month period ending June 30, 2020, were as follows (credit balances in parentheses): Wisconsin Badger Revenues $ (985,000 ) $ (462,000 ) Expenses 707,000 293,000 Net income $ (278,000 ) $ (169,000 ) Retained earnings, 1/1 $ (801,000 ) $ (236,000 ) Net income (278,000 ) (169,000 ) Dividends declared 105,000 0 Retained earnings, 6/30 $ (974,000 ) $ (405,000 ) Cash $ 42,000 $ 79,000 Receivables and inventory 413,000 216,000 Patented technology (net) 911,000 347,000 Equipment (net) 739,000 664,000 Total assets $ 2,105,000 $…arrow_forwardOn June 30, 2020, Wisconsin, Inc., issued $267,350 in debt and 18,400 new shares of its $10 par value stock to Badger Company owners in exchange for all of the outstanding shares of that company. Wisconsin shares had a fair value of $40 per share. Prior to the combination, the financial statements for Wisconsin and Badger for the six-month period ending June 30, 2020, were as follows (credit balances in parentheses): Wisconsin Badger Revenues $ (985,000 ) $ (339,000 ) Expenses 720,000 201,000 Net income $ (265,000 ) $ (138,000 ) Retained earnings, 1/1 $ (843,000 ) $ (208,000 ) Net income (265,000 ) (138,000 ) Dividends declared 106,250 0 Retained earnings, 6/30 $ (1,001,750 ) $ (346,000 ) Cash $ 110,750 $ 59,000 Receivables and inventory 433,000 180,000 Patented technology (net) 929,000 372,000 Equipment (net) 727,000 619,000 Total assets $ 2,199,750 $…arrow_forwardOn June 30, 2020, Wisconsin, Inc., issued $92,400 in debt and 23,400 new shares of its $10 par value stock to Badger Company owners in exchange for all of the outstanding shares of that company. Wisconsin shares had a fair value of $40 per share. Prior to the combination, the financial statements for Wisconsin and Badger for the six-month period ending June 30, 2020, were as follows (credit balances in parentheses): Wisconsin Badger Revenues $ (944,000 ) $ (443,000 ) Expenses 686,000 287,000 Net income $ (258,000 ) $ (156,000 ) Retained earnings, 1/1 $ (853,000 ) $ (207,000 ) Net income (258,000 ) (156,000 ) Dividends declared 110,000 0 Retained earnings, 6/30 $ (1,001,000 ) $ (363,000 ) Cash $ 58,000 $ 154,000 Receivables and inventory 442,000 171,000 Patented technology (net) 923,000 329,000 Equipment (net) 723,000 655,000 Total assets $ 2,146,000 $…arrow_forward
- On June 30, 2020, Wisconsin, Inc., issued $147,900 in debt and 20,400 new shares of its $10 par value stock to Badger Company owners in exchange for all of the outstanding shares of that company. Wisconsin shares had a fair value of $40 per share. Prior to the combination, the financial statements for Wisconsin and Badger for the six-month period ending June 30, 2020, were as follows (credit balances in parentheses): Wisconsin Badger Revenues $ (930,000 ) $ (331,000 ) Expenses 663,000 210,000 Net income $ (267,000 ) $ (121,000 ) Retained earnings, 1/1 $ (809,000 ) $ (216,000 ) Net income (267,000 ) (121,000 ) Dividends declared 114,250 0 Retained earnings, 6/30 $ (961,750 ) $ (337,000 ) Cash $ 69,750 $ 118,000 Receivables and inventory 461,000 194,000 Patented technology (net) 911,000 321,000 Equipment (net) 720,000 650,000 Total assets $ 2,161,750 $…arrow_forwardOn June 30, 2020, Wisconsin, Inc., issued $147,900 in debt and 20,400 new shares of its $10 par value stock to Badger Company owners in exchange for all of the outstanding shares of that company. Wisconsin shares had a fair value of $40 per share. Prior to the combination, the financial statements for Wisconsin and Badger for the six-month period ending June 30, 2020, were as follows (credit balances in parentheses): Wisconsin Badger Revenues $ (930,000 ) $ (331,000 ) Expenses 663,000 210,000 Net income $ (267,000 ) $ (121,000 ) Retained earnings, 1/1 $ (809,000 ) $ (216,000 ) Net income (267,000 ) (121,000 ) Dividends declared 114,250 0 Retained earnings, 6/30 $ (961,750 ) $ (337,000 ) Cash $ 69,750 $ 118,000 Receivables and inventory 461,000 194,000 Patented technology (net) 911,000 321,000 Equipment (net) 720,000 650,000 Total assets $ 2,161,750 $…arrow_forwardNapier Co. provided the following information on selected transactions during 2021: Purchase of land by issuing bonds, P250,000; Proceeds from issuing bonds, P500,000; Purchases of inventory, P950,000; Purchases of treasury shares, P150,000; Loans made to affiliated corporations, P350,000; Dividends paid to preference shareholders, P100,000; Proceeds from issuing preference share, P400,000; Proceeds from sale of equipment, P50,000. The net cash provided by financing activities during 2021 is (A P650,000. (B) P800,000. P900,000. D P550,000.arrow_forward
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