Please refer to the picture below for information. Instructions: Show the complete solutionQuestion:1. Prepare the Statement of Financial Position (SFP) of Tanangonan after the merger.2. Determine the goodwill or gain on bargain purchase from the above acquisition. 1. On January 1, 20X2, Tanangonan Company acquired all the assets and assumed all the liabilities of OngCompany. In exchange for the net assets of Ong, Tanangonan gave its bond payable with a maturity valueof P600,000 with a stated rate of 10% interest payable semiannually on June 30 and December 31. Thesaid 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:TanangonanBook ValueÔngBook ValueFair ValueCashP250,000352,700848,300700,000950,000(325,000)262,750(70,050)P2,968,700P114,000150,000232,000P114,000135,000310,000315,00054,900ReceivablesInventoriesLandBuildingsAccumulated Depreciation – BuildingsEquipmentAccumulated Dep100,000410,000(170,500)136,450(90,450)P881,50039,450ion – EquipmentTotal AssetsP968,350P95,300300,000Current LiabilitiesP292,700P95,300260,000Bond PayableCommon Stock, P15 par valueCommon Stock, P5 par valueOther Contributed CapitalRetained EarningsTotal Equities1,200,000950,000526,000P2,968,750236,500170,00079,700P881,500

Merger: Merger can be defined as the agreement between two companies that lead to creation of a new…

Answered: 1. Prepare the Statement of Financial…

1. Prepare the Statement of Financial Position (SFP) of Tanangonan after the merger. 2. Determine the goodwill or gain on bargain purchase from the above acquisition.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...

See similar textbooks

Similar questions

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: Cash Receivables Inventories Land Buildings Accumulated Depreciation – Buildings Equipment Accumulated Depreciation - Equipment Total Assets Tanangonan Book Value P250,000 352,700 848,300 700,000 950,000 (325,000) 262,750 (70,050) P2,968,700 Ong Book Value P114,000 150,000 232,000 100,000 410,000 (170,500) 136,450 (90,450) P881,500 Fair Value P114,000 135,000 310,000 315,000 54,900 39,450 P968,350 P95,300 260,000 Current Liabilities Bond Payable Common Stock, P15 par value Common Stock, P5 par value Other…
On January 1, 20X2, Tanangonan Company acquired all the assets and assumed all the liabilities of OngCompany. In exchange for the net assets of Ong, Tanangonan gave its bond payable with a maturity valueof P600,000 with a stated rate of 10% interest payable semiannually on June 30 and December 31. Thesaid 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 OngBook Value Book Value Fair ValueCash P250,000 P114,000 P114,000Receivables 352,700 150,000 135,000Inventories 848,300 232,000 310,000Land 700,000 100,000 315,000Buildings 950,000 410,000 54,900Accumulated Depreciation – Buildings (325,000) (170,500)Equipment 262,750 136,450 39,450Accumulated Depreciation – Equipment (70,050) (90,450)Total Assets P2,968,700 P881,500 P968,350Current Liabilities P292,700 P95,300 P95,300Bond Payable 300,000 260,000Common Stock, P15 par value 1,200,000Common Stock, P5 par value…
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%. Required:1. Determine the goodwill or gain on bargain purchase from the above acquisition.2. Give the adjusting entries that will be made on the book of Tanangonan. 3. Prepare the Statement of Financial Position (SFP) of Tanangonan after the merger. see the given picture for The Statement of Financial Position (SFP) of both companies as of January 1, 20X2 were as follows:
Please answer my question
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 mature after 10 years 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 Ong Book Value Fair Value P250,000 352,700 Cash P114,000 150,000 232,000 100,000 410,000 (170,500) 136,450 (90,450) P881,500 P114,000 135,000 310,000 315,000 54,900 Receivables Inventories 848,300 700,000 950,000 (325,000) 262,750 (70,050) P2,968,700 Land Buildings Accumulated Depreciation – Buildings Equipment Accumulated Depreciation – Equipment Total Assets 39,450 P968,350 Current Liabilities Bond Payable Common Stock, P15 par value Common Stock, P5 par value Other Contributed Capital Retained…
B. On 1 July 2021, Zackry Berhad issued 8 percent bonds of nominal value RM24,000,000 at a discount of 10 percent. Transaction cost incurred amounted RM120,000. The effective rate is 5 percent and interest date is 30 June every year. The market price of bonds in year 2021 and 2022 are shown below: 30 June 2021 30 June 2022 The liability is measured at fair value. Required: Prepare the journal entries for the issuance bonds and payment of interest for the year ended 30 June 2021 and 30 June 2022. RM23,400,000 RM24,800,000
Debond Corp. issues £1,000,000 worth of fi ve-year bonds, dated 1 January 2010, whenthe market interest rate on bonds of comparable risk and terms is 6 percent. Th e bondspay 5 percent interest annually on 31 December. What are the sales proceeds of thebonds when issued, and how is the issuance refl ected in the fi nancial statements?
21. On January 01, 2019, SUNOD NA ANG LEASES LTD. issued 3- year bonds with face value of P5,000,000 at 99. The nominal rate is 10% and the interest is payable annually on December 31. Additionally, it paid bond issue cost of P150,000. Suppose the bonds were issued in the amount of P5,407,550. What is the present value of the bonds? * a. P5,000,000 at face amount since as a general rule, when the problem is silent, stated rate is equal to effective rate. b. P5,407,550 is the present value. Bond issue cost should be included in the computation of the present value since under the effective interest method; this cost should be lumped together with the discount, or netted against the premium, as the case may be. c. P5,257,550 is the present value. With the nominal rate at 10%, it is understood that the bonds were issued at a premium to be amortized using the rate contained in the bond certificate. d. None of the scenarios above is correct. They are just simply "epal" and "pampalito".
On November 1, 20x4, Madison Corp. issued ₱800,00 of its 10-year, 8% term bonds dated October 1, 20x4. The bonds were sold to yield 10%, with total proceeds of ₱700,00 plus accrued interest. Interest is paid every April 1 and October 1. What amount should Madison report for interest payable in its December 31, 20x4 balance sheet?
7. On January 1, 2021, MACADAMIA Company issued 5-year bonds with a face value of ₱5,000,000 at 110. The company paid the bond issued cost of ₱80,000 on the same date. The stated interest rate on the bonds is 8% payable annually every December 31. After consideration of bond issue costs to be initially measured, the bonds were determined to yield 6% per annum. On December 31, 2021, what should MACADAMIA report as interest expense for the year ended, December 31, 2021? a. ₱ 300,000 b. ₱ 325,200 c. ₱ 433,600 d. ₱ 295,200
answer is A: how do you get to this answers?
On January 1, 20x1, an entity issues bonds with face amount of P5,000,000 for P5,773,129. The bonds mature on December 31, 20x3 and pay annual interest of 14%. The effective interest rate is 8%. ◦Requirement: ◦Prepare the amortization table for the bonds.