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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 follows : АВС EFG 600,000 (400,000) (100,000) Sales 800,000 Cost of goods sold Operating Expenses (535,000 ) (100,000) 35,000 200,000 Dividend Income Net Income 100, 000 Retained Earnings , beg 1,300,000 200,000 850,000 100,000 Net Income Dividend Paid (100,000) 1,400,000 (50,000) 900,000 Retained Earnings , end Cash and Receivables Inventory Investment in EFG 400,000 298,000 902,000 300,000 700,000 Fixed Assets 1,000,000 600,000 Accumulated Depreciation Totals (300,000) 2,300,000 (200,000) 1,400,000 Labilities 600,000 300,000 400,000 100,000 Ordinary Share 900,000 1,400,000 Accumulated Profit 1,400,000 2,300,000 Totals • EFG sold ABC inventory costing P72,000 during the last six months of 2021 for P120,000. At year-end 30% remained. • EFG sells ABC inventory costing P200,000 during 2022 for P250,000. At year- end, 20% is left.

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 follows : АВС EFG 600,000 (400,000) (100,000) Sales 800,000 Cost of goods sold Operating Expenses (535,000 ) (100,000) 35,000 200,000 Dividend Income Net Income 100, 000 Retained Earnings , beg 1,300,000 200,000 850,000 100,000 Net Income Dividend Paid (100,000) 1,400,000 (50,000) 900,000 Retained Earnings , end Cash and Receivables Inventory Investment in EFG 400,000 298,000 902,000 300,000 700,000 Fixed Assets 1,000,000 600,000 Accumulated Depreciation Totals (300,000) 2,300,000 (200,000) 1,400,000 Labilities 600,000 300,000 400,000 100,000 Ordinary Share 900,000 1,400,000 Accumulated Profit 1,400,000 2,300,000 Totals • EFG sold ABC inventory costing P72,000 during the last six months of 2021 for P120,000. At year-end 30% remained. • EFG sells ABC inventory costing P200,000 during 2022 for P250,000. At year- end, 20% is left.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Compute for the consolidated assets for 2020.

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 follows : АВС EFG Sales 800,000 600,000 Cost of goods sold Operating Expenses (535,000 ) (100,000) (400,000) (100,000) Dividend Income 35,000 Net Income 200,000 100, 000 Retained Earnings , beg 1,300,000 850,000 Net Income 200,000 100,000 Dividend Paid (100,000) (50,000) Retained Earnings , end 1,400,000 900,000 Cash and Receivables 400,000 300,000 Inventory 298,000 700,000 902,000 1,000,000 Investment in EFG Fixed Assets 600,000 Accumulated Depreciation (300,000) (200,000) Totals 2,300,000 1,400,000 Labilities 600,000 400,000 Ordinary Share 300,000 100,000 Accumulated Profit 1,400,000 900,000 Totals 2,300,000 1,400,000 • EFG sold ABC inventory costing P72,000 during the last six months of 2021 for P120,000. At year-end 30% remained. • EFG sells ABC inventory costing P200,000 during 2022 for P250,000. At year- end, 20% is left.
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 follows : АВС EFG Sales 800,000 600,000 Cost of goods sold Operating Expenses (535,000 ) (100,000) (400,000) (100,000) Dividend Income 35,000 Net Income 200,000 100, 000 Retained Earnings , beg 1,300,000 850,000 Net Income 200,000 100,000 Dividend Paid (100,000) (50,000) Retained Earnings , end 1,400,000 900,000 Cash and Receivables 400,000 300,000 Inventory 298,000 700,000 902,000 1,000,000 Investment in EFG Fixed Assets 600,000 Accumulated Depreciation (300,000) (200,000) Totals 2,300,000 1,400,000 Labilities 600,000 400,000 Ordinary Share 300,000 100,000 Accumulated Profit 1,400,000 900,000 Totals 2,300,000 1,400,000 • EFG sold ABC inventory costing P72,000 during the last six months of 2021 for P120,000. At year-end 30% remained. • EFG sells ABC inventory costing P200,000 during 2022 for P250,000. At year- end, 20% is left.
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