Selected information from the separate and consolidated statements of financial position and statements of comprehensive income of P Company. and its subsidiary, S Company. as of December 31, 2019, and for the year then ended is as follows: P Company S Company Consolidated Statement of financial position acCounts Accounts receivable... P 26,000 30.000 67.000 P19,000 25,000 P 42,000 50,000 Inventory.... Investment in S Co.. Goodwill.. Noncontrolling interes... Stockholders' equity. . 30,000 10,000 154,000 154,000 50,000 Statement of comprehensive income accounts P200,000 P140,000 110.000 30,000 P300,000 225,000 75,000 Revenues. Cost of goods sold. . Gross profit. 150.000 50.000 P9,000 Equity in eamings of S Co. Net income............ P36.000 P20,000 P36,000 Additional information During 2019, P Company sold goods to S Company at the same markup on cost that P Co uses for all sales. At December 31, 2019, S Co had not pald for all of these goods and stil held 50% of them in inventory. P Company acquired its interest in S Company five years earlier (as of December 31, 2019)
Selected information from the separate and consolidated statements of financial position and statements of comprehensive income of P Company. and its subsidiary, S Company. as of December 31, 2019, and for the year then ended is as follows: P Company S Company Consolidated Statement of financial position acCounts Accounts receivable... P 26,000 30.000 67.000 P19,000 25,000 P 42,000 50,000 Inventory.... Investment in S Co.. Goodwill.. Noncontrolling interes... Stockholders' equity. . 30,000 10,000 154,000 154,000 50,000 Statement of comprehensive income accounts P200,000 P140,000 110.000 30,000 P300,000 225,000 75,000 Revenues. Cost of goods sold. . Gross profit. 150.000 50.000 P9,000 Equity in eamings of S Co. Net income............ P36.000 P20,000 P36,000 Additional information During 2019, P Company sold goods to S Company at the same markup on cost that P Co uses for all sales. At December 31, 2019, S Co had not pald for all of these goods and stil held 50% of them in inventory. P Company acquired its interest in S Company five years earlier (as of December 31, 2019)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
a. Using the information provided in the image below, determine the carrying amount of the inventory that S Company purchased from P Company in the December 31, 2019 consolidated
b. Using the same information in item 2, determine the percent of noncontrolling interest ownership in S Company as of December 31, 2019.
Transcribed Image Text:Selected information from the separate and consolidated statements of financial position and statements of
comprehensive income of P Company. and its subsidiary, S Company. as of December 31, 2019, and for the
year then ended is as follows:
P Company
S Company
Consolidated
Statement of financial position acCounts
Accounts receivable...
P 26,000
30.000
67.000
P19,000
25,000
P 42,000
50,000
Inventory....
Investment in S Co..
Goodwill..
Noncontrolling interes...
Stockholders' equity. .
30,000
10,000
154,000
154,000
50,000
Statement of comprehensive income accounts
P200,000
P140,000
110.000
30,000
P300,000
225,000
75,000
Revenues.
Cost of goods sold. .
Gross profit.
150.000
50.000
P9,000
Equity in eamings of S Co.
Net income............
P36.000
P20,000
P36,000
Additional information
During 2019, P Company sold goods to S Company at the same markup on cost that P Co uses
for all sales. At December 31, 2019, S Co had not pald for all of these goods and stil held 50% of
them in inventory.
P Company acquired its interest in S Company five years earlier (as of December 31, 2019)
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