ABC and XYZ Inc had the following balance sheets on December 31, 2021: (see image below) On January 1, 2022 ABC purchased all of XYZ Inc’s Common Shares for P40,000 in cash. On that date, XYZ’s Current Assets and Fixed Assets were worth P26,000 and P54,000, respectively. Assuming that Consolidated Financial Statements were prepared on that date, determine the value of the current assets of the combined entity: 7. Using the same information in #6 how much is the Goodwill arising from this Business Combination? 8. Using the same information in #6 how much is the Shareholder’s Equity section of the Consolidated Balance Sheet?
ABC and XYZ Inc had the following balance sheets on December 31, 2021: (see image below) On January 1, 2022 ABC purchased all of XYZ Inc’s Common Shares for P40,000 in cash. On that date, XYZ’s Current Assets and Fixed Assets were worth P26,000 and P54,000, respectively. Assuming that Consolidated Financial Statements were prepared on that date, determine the value of the current assets of the combined entity: 7. Using the same information in #6 how much is the Goodwill arising from this Business Combination? 8. Using the same information in #6 how much is the Shareholder’s Equity section of the Consolidated Balance Sheet?
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter4: Balance Sheet: Presenting And Analyzing Resources And Financing
Section: Chapter Questions
Problem 14E
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6. ABC and XYZ Inc had the following balance sheets on December 31, 2021: (see image below) On January 1, 2022 ABC purchased all of XYZ Inc’s Common Shares for P40,000 in cash. On that date, XYZ’s Current Assets and Fixed Assets were worth P26,000 and P54,000, respectively. Assuming that Consolidated Financial Statements were prepared on that date, determine the value of the current assets of the combined entity:
7. Using the same information in #6 how much is the
8. Using the same information in #6 how much is the Shareholder’s Equity section of the Consolidated
![ABC
P 60,000
100,000
P160.000
P 42,000
20,000
90,000
8.000
P160.000
XYZ
P10,000
60,000
P70.000
P35,000
12,000
12,000
11,000
P70.000
Curent Assets
Fixed Assets (net)
Total Assets
Curent Liabilities
Bonds Payable
Common Shares
Retained Earnings
Total Liabilities and Equity](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa424660b-6bc7-4d58-9ca3-61b1000a9301%2Fdc741999-e263-4cfb-9f32-5424c4e26f64%2Fdlrfnfa_processed.png&w=3840&q=75)
Transcribed Image Text:ABC
P 60,000
100,000
P160.000
P 42,000
20,000
90,000
8.000
P160.000
XYZ
P10,000
60,000
P70.000
P35,000
12,000
12,000
11,000
P70.000
Curent Assets
Fixed Assets (net)
Total Assets
Curent Liabilities
Bonds Payable
Common Shares
Retained Earnings
Total Liabilities and Equity
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