1. On January 1, 20X2, Tanangonan Company acquired all the assets and assumed all the liabilities of Ong Company. In exchange for the net assets of Ong, Tanangonan gave its bond payable with a maturity value of P600,000 with a stated rate of 10% interest payable semiannually on June 30 and December 31. The said bond will also mature on January 1, 20X2, and has a yield rate of 12%. The Statement of Financial Position (SFP) of both companies as of January 1, 20X2 were as follows: Tanangonan Book Value Ông Book Value Fair Value Cash P250,000 352,700 848,300 P114,000 150,000 232,000 P114,000 135,000 310,000 315,000 54,900 Receivables Inventories Land Buildings Accumulated Depreciation – Buildings Equipment Accumulated Depreciation - Equipment 700,000 950,000 (325,000) 262,750 (70,050) P2,968,700 100,000 410,000 (170,500) 136,450 (90,450) P881,500 39,450 Total Assets P968,350 Current Liabilities P292,700 P95,300 300,000 P95,300 260,000 Bond Payable Common Stock, P15 par value Common Stock, P5 par value Other Contributed Capital Retained Earnings Total Equities 1,200,000 236,500 170,000 79,700 P881,500 950,000 526,000 P2,968,750
1. On January 1, 20X2, Tanangonan Company acquired all the assets and assumed all the liabilities of Ong Company. In exchange for the net assets of Ong, Tanangonan gave its bond payable with a maturity value of P600,000 with a stated rate of 10% interest payable semiannually on June 30 and December 31. The said bond will also mature on January 1, 20X2, and has a yield rate of 12%. The Statement of Financial Position (SFP) of both companies as of January 1, 20X2 were as follows: Tanangonan Book Value Ông Book Value Fair Value Cash P250,000 352,700 848,300 P114,000 150,000 232,000 P114,000 135,000 310,000 315,000 54,900 Receivables Inventories Land Buildings Accumulated Depreciation – Buildings Equipment Accumulated Depreciation - Equipment 700,000 950,000 (325,000) 262,750 (70,050) P2,968,700 100,000 410,000 (170,500) 136,450 (90,450) P881,500 39,450 Total Assets P968,350 Current Liabilities P292,700 P95,300 300,000 P95,300 260,000 Bond Payable Common Stock, P15 par value Common Stock, P5 par value Other Contributed Capital Retained Earnings Total Equities 1,200,000 236,500 170,000 79,700 P881,500 950,000 526,000 P2,968,750
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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