ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition-date fair value on intangible of P300,000 was recognized and is being amortized at the rate of P10,000 per year. The 2022 financial statements are as follows: АВС EFG Sales Cost of goods sold Operating Expenses 800,000 (535,000) (100,000) 35,000 200,000 600,000 (400,000) (100,000) Dividend Income Net Income 100,000 Retained Earnings, beg 1,300,000 200,000 (100,000) 1,400,000 850,000 100,000 (50,000) 900,000 Net Income Dividend Paid Retained Earnings, end 400,000 298,000 902,000 1,000,000 Cash and Receivables 300,000 700,000 Inventory Investment in EFG Fixed Assets 600,000 (200,000) 1,400,000 Accumulated Depreciation (300,000) Totals 2,300,000 Labilities 600,000 300,000 1,400,000 2,300,000 400,000 100,000 Ordinary Share Accumulated Profit 900,000 Totals 1,400,000 ABC sold EFG inventory costing P72,000 during the last six months of 2021 for P120,000. At year-end 30% remained. ABC sells EFG inventory costing P200,000 during 2022 for P250,000. At year-end, 20% is left. Compute for Consolidated asset for 2022.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition-date fair value on intangible of
P300,000 was recognized and is being amortized at the rate of P10,000 per year. The 2022 financial
statements are as follows:
АВС
EFG
Sales
Cost of goods sold
Operating Expenses
800,000
(535,000)
(100,000)
35,000
200,000
600,000
(400,000)
(100,000)
Dividend Income
Net Income
100,000
Retained Earnings, beg
1,300,000
200,000
(100,000)
1,400,000
850,000
100,000
(50,000)
900,000
Net Income
Dividend Paid
Retained Earnings, end
400,000
298,000
902,000
1,000,000
Cash and Receivables
300,000
700,000
Inventory
Investment in EFG
Fixed Assets
600,000
Accumulated Depreciation
Totals
(300,000)
2,300,000
(200,000)
1,400,000
Labilities
600,000
300,000
1,400,000
2,300,000
400,000
100,000
Ordinary Share
Accumulated Profit
900,000
1,400,000
Totals
ABC sold EFG inventory costing P72,000 during the last six months of 2021 for P120,000. At year-end
30% remained. ABC sells EFG inventory costing P200,000 during 2022 for P250,000. At year-end, 20% is
left. Compute for Consolidated asset for 2022.
Transcribed Image Text:ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition-date fair value on intangible of P300,000 was recognized and is being amortized at the rate of P10,000 per year. The 2022 financial statements are as follows: АВС EFG Sales Cost of goods sold Operating Expenses 800,000 (535,000) (100,000) 35,000 200,000 600,000 (400,000) (100,000) Dividend Income Net Income 100,000 Retained Earnings, beg 1,300,000 200,000 (100,000) 1,400,000 850,000 100,000 (50,000) 900,000 Net Income Dividend Paid Retained Earnings, end 400,000 298,000 902,000 1,000,000 Cash and Receivables 300,000 700,000 Inventory Investment in EFG Fixed Assets 600,000 Accumulated Depreciation Totals (300,000) 2,300,000 (200,000) 1,400,000 Labilities 600,000 300,000 1,400,000 2,300,000 400,000 100,000 Ordinary Share Accumulated Profit 900,000 1,400,000 Totals ABC sold EFG inventory costing P72,000 during the last six months of 2021 for P120,000. At year-end 30% remained. ABC sells EFG inventory costing P200,000 during 2022 for P250,000. At year-end, 20% is left. Compute for Consolidated asset for 2022.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Consolidations
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education