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anuary outstanding shares for P648,000. P30,000 of the and the balance to an equipment with an econo interest is measured at its fair value on date of "ps corporation purchas acquisition, stockholders' equity of the two com Phillip Corporat P1.05 Ordinary shares RetaineG earnings

anuary outstanding shares for P648,000. P30,000 of the and the balance to an equipment with an econo interest is measured at its fair value on date of "ps corporation purchas acquisition, stockholders' equity of the two com Phillip Corporat P1.05 Ordinary shares RetaineG earnings

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 2, 2013, Phillips Corporation purchase 80% of Signage Company's outstanding shares for P648,000. P30.000 of the excess is attributable to goodwill and the balance to an equipment with an economic life of ten years. Non-controlling interest is measured at its fair value on date of acquisition. On the date of acquisition, stockholders' equity of the two companies were as follows: Ordinary shares Retained earnings Phillips Corporation P1,050,000 1,560,000 signage Company P 240,000 420,000 On December 31, 2013, Signage Company reported net income of P105,000 and paid dividends of P36,000 to Philips. Philips reported from its separate operations of P285.000 and paid dividends of P138.000. Goodwill had been impaired and should be reported at P6,000 on December 31, 2013. 1. What is the non-controlling interest in profit of Signage Company on December 31, 2013? A. P21.000 B. P13,800 C. P18,750 D. P18,600 2. What is the consolidated profit attributable to parent shareholders on December 31, 2013? A. P340,200 B. P360,000 C. P336.000 D. P356.400 3. What is the consolidated retained earnings attributable to parent's shareholders equity on December 31, 2013? A. Pi,757,40o B. P2.079,750 C. P1,762.200 D. P1,758,000 4. What amount of non-controlling interest is to be presented in the consolidated statement of financial position on December 31, 2013? A. P164,250 B. P145.500 C. P166.800 D. P154,500
Transcribed Image Text:On January 2, 2013, Phillips Corporation purchase 80% of Signage Company's outstanding shares for P648,000. P30.000 of the excess is attributable to goodwill and the balance to an equipment with an economic life of ten years. Non-controlling interest is measured at its fair value on date of acquisition. On the date of acquisition, stockholders' equity of the two companies were as follows: Ordinary shares Retained earnings Phillips Corporation P1,050,000 1,560,000 signage Company P 240,000 420,000 On December 31, 2013, Signage Company reported net income of P105,000 and paid dividends of P36,000 to Philips. Philips reported from its separate operations of P285.000 and paid dividends of P138.000. Goodwill had been impaired and should be reported at P6,000 on December 31, 2013. 1. What is the non-controlling interest in profit of Signage Company on December 31, 2013? A. P21.000 B. P13,800 C. P18,750 D. P18,600 2. What is the consolidated profit attributable to parent shareholders on December 31, 2013? A. P340,200 B. P360,000 C. P336.000 D. P356.400 3. What is the consolidated retained earnings attributable to parent's shareholders equity on December 31, 2013? A. Pi,757,40o B. P2.079,750 C. P1,762.200 D. P1,758,000 4. What amount of non-controlling interest is to be presented in the consolidated statement of financial position on December 31, 2013? A. P164,250 B. P145.500 C. P166.800 D. P154,500
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