2. On January 1, 20x2, Pol Inc. issued 25,000 shares of its P10 par value common stock for 80% of the outstanding shares of Sci Company. The fair value of Pol Inc. stock is P28. Sci Company (SC) measures non-controlling interest (NCI) at fair value. Given below are the statements of financial position (SFP) of the companies before the acquisition: Pol Inc. Statement of Financial Position January 1, 20X2 Assets Liabilities and Equity P200,000 Accounts Payable 185,000 Bonds Payable 190,000 Common Stock, P10 par value 300,000 Additional Paid-In Capital (APIC) 740,000 Retained Earnings 420,000 Total Liabilities and Equity P2,035,000 Cash P210,000 420,000 400,000 500,000 505,000 P2,035,000 Accounts Receivable Inventory Land Building, net of depreciation Equipment, net of depreciation Total Assets

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Chapter1: Financial Statements And Business Decisions
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Prepare the set of consolidated financial statement of financial position on the date of acquisition by showing the consolidation procedures.

2. On January 1, 20x2, Pol Inc. issued 25,000 shares of its P10 par value common stock for 80% of the
outstanding shares of Sci Company. The fair value of Pol Inc. stock is P28. Sci Company (SC) measures
non-controlling interest (NCI) at fair value. Given below are the statements of financial position (SFP) of the
companies before the acquisition:
Pol Inc.
Statement of Financial Position
January 1, 20X2
Assets
Liabilities and Equity
Cash
P200,000 Accounts Payable
185,000 Bonds Payable
190,000 Common Stock, P10 par value
300,000 Additional Paid-In Capital (APIC)
740,000 Retained Earnings
420,000 Total Liabilities and Equity
P2,035,000
Accounts Receivable
Inventory
Land
P210,000
420,000
400,000
500,000
Building, net of depreciation
Equipment, net of depreciation
505,000
P2,035,000
Total Assets
Transcribed Image Text:2. On January 1, 20x2, Pol Inc. issued 25,000 shares of its P10 par value common stock for 80% of the outstanding shares of Sci Company. The fair value of Pol Inc. stock is P28. Sci Company (SC) measures non-controlling interest (NCI) at fair value. Given below are the statements of financial position (SFP) of the companies before the acquisition: Pol Inc. Statement of Financial Position January 1, 20X2 Assets Liabilities and Equity Cash P200,000 Accounts Payable 185,000 Bonds Payable 190,000 Common Stock, P10 par value 300,000 Additional Paid-In Capital (APIC) 740,000 Retained Earnings 420,000 Total Liabilities and Equity P2,035,000 Accounts Receivable Inventory Land P210,000 420,000 400,000 500,000 Building, net of depreciation Equipment, net of depreciation 505,000 P2,035,000 Total Assets
Sci Company
Statement of Financial Position
January 1, 20X2
Book Value Fair Value
Accounts Receivable
Inventory
Land
Building, net of depreciation
Equipment, net of depreciation
Total Assets
P55,000
125,000
90,000
320,000
130,000
P720,000 P1,135,000
P55,000
150,000
130,000
500,000
300,000
Accounts Payable
Bonds Payable
Common Stock, P2 par value
Additional Paid-In Capital
Retained Earnings
Total Liabilities and Equity
P160,000
240,000
40,000
160,000
120,000
P720,000
P160,000
240,000
Transcribed Image Text:Sci Company Statement of Financial Position January 1, 20X2 Book Value Fair Value Accounts Receivable Inventory Land Building, net of depreciation Equipment, net of depreciation Total Assets P55,000 125,000 90,000 320,000 130,000 P720,000 P1,135,000 P55,000 150,000 130,000 500,000 300,000 Accounts Payable Bonds Payable Common Stock, P2 par value Additional Paid-In Capital Retained Earnings Total Liabilities and Equity P160,000 240,000 40,000 160,000 120,000 P720,000 P160,000 240,000
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