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11. How much is the consolidated retained earnings on December 31, 2020? a. P190,750 b. P139,750 c. P51,000 d. P36,000

11. How much is the consolidated retained earnings on December 31, 2020? a. P190,750 b. P139,750 c. P51,000 d. P36,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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BUSINESS COMBINATION (EQUITY METHOD)

11. How much is the consolidated retained earnings on December 31, 20207 а. Р190,750 b. P139,750 c. P51,000 d. P36,000 12. How much is the total assets in the consolidated statement of financial position as of December 31, 2020? а. Р293,000 b. P280,000 с. Р270,000 d. P253,000 13. What amount of equity attributable to the owners of the parent should be reported in Draco Malfoy's December 31, 2020 consolidated statement of financial position? a. P270,000 b. P286,000 c. P293,000 d. P385,000
Transcribed Image Text:11. How much is the consolidated retained earnings on December 31, 20207 а. Р190,750 b. P139,750 c. P51,000 d. P36,000 12. How much is the total assets in the consolidated statement of financial position as of December 31, 2020? а. Р293,000 b. P280,000 с. Р270,000 d. P253,000 13. What amount of equity attributable to the owners of the parent should be reported in Draco Malfoy's December 31, 2020 consolidated statement of financial position? a. P270,000 b. P286,000 c. P293,000 d. P385,000
7. On January 3, 2020, Draco Malfoy Company acquired 80% of Ron Weasley Company's outstanding shares. On that date, the carrying amounts of Ron Weasley's assets and liabilities approximated their fair values. Non-controlling interest was measured using the proportionate share method. During 2020, Ron Weasley paid P5,000 cash dividends to its shareholders. Summarized Statement of Financial Position for the two companies follows: CHAPTER 5: SPECIAL TOPICS ON BUSINESS COMBINATION AND CONSOLIDATION Page | 202 Draco Malfoy Company (BV) Ron Weasley Company 12/31/2020 12/31/2020 01/01/2020 Investment in Ron Weasley (equity method) Other assets 132,000 138,000 270,000 115,000 115,000 100,000 100,000 Total Ordinary share Share premium Retained earnings Total 50,000 80,250 139,750 270,000 20,000 44,000 51,000 115,000 20,000 44,000 36,000 100,000
Transcribed Image Text:7. On January 3, 2020, Draco Malfoy Company acquired 80% of Ron Weasley Company's outstanding shares. On that date, the carrying amounts of Ron Weasley's assets and liabilities approximated their fair values. Non-controlling interest was measured using the proportionate share method. During 2020, Ron Weasley paid P5,000 cash dividends to its shareholders. Summarized Statement of Financial Position for the two companies follows: CHAPTER 5: SPECIAL TOPICS ON BUSINESS COMBINATION AND CONSOLIDATION Page | 202 Draco Malfoy Company (BV) Ron Weasley Company 12/31/2020 12/31/2020 01/01/2020 Investment in Ron Weasley (equity method) Other assets 132,000 138,000 270,000 115,000 115,000 100,000 100,000 Total Ordinary share Share premium Retained earnings Total 50,000 80,250 139,750 270,000 20,000 44,000 51,000 115,000 20,000 44,000 36,000 100,000
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