Answered: As of December 31, 2020, the separate… | bartleby

As of December 31, 2020, the separate company financial statements of Drao co and Its 80% owned subsidiary, Lesa Co, has a related balance with dividends as follows: Dividend 2020 Dividend payable December 31, 2020 Drao co CU600.000.000 CU300.000.000 Lesa Co CU400.000.000 CU100.000.000 Requested: 1, What is the dividend value that will appear in the consolidated Retained Earnings statement? 2, How much dividend payable will appear on the Consolidated Balance Sheet?

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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As of December 31, 2020, the separate company financial statements of Drao co and Its 80% owned subsidiary, Lesa Co, has a related balance with dividends as follows:

Dividend 2020
Dividend payable December 31, 2020

Drao co

CU600.000.000
CU300.000.000

Lesa Co

CU400.000.000
CU100.000.000

Requested:

1, What is the dividend value that will appear in the consolidated Retained Earnings statement?

2, How much dividend payable will appear on the Consolidated Balance Sheet?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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Company P acquired 90 percent of the common stock of Company S on 1/1/2020. During 2020, Company S reported a net income of $50,000 and dividends of $12,000. Company P uses the simple equity method to account for the investment in S. Which of the following entries is prepared by Company P when consolidating the financial statements for 2020? Debit Subsidiary Income $45,000, Credit Investment in S $45,000 Debit Investment in S $45,000, Credit Subsidiary Income $45,000 Debit Dividends Receivable $10,800, Credit Subsidiary Income $10,800 Debit Subsidiary Income $10,800, Credit Dividends Declared $10,800
On 1/1/2022, P Co acquired 90% of S Co stock at an amount equal to its book value.Selected balance sheet data at 1/1/ 2022, are as follows: P CO S Co Total Assets 180,000 Liabilities 60,000 Common Stock 50,000 Select one: Retained Earnings 200,000 70,000 O 420,000 In the 1/1/2022, consolidated balance sheet, what amount should be reported as non-controlling interest in net assets? a. 12,000 b. 10,500 120,000 c. 0 d. 30,000 100,000
on 1/1/2019 X CO acquired 80% of Y common stock for $150,000 in the same day the y net assets was $ 140,000 , in the same date the fair value of assets and liabilities were equal .year ended 31/12/2019 y reported income $50,000 , declared dividend $30,000 , X using equity methods what is good will balance on 1/1/2019 Select one: a. 10,000 b. 47,500 c. 37,500 d. 50,000 Previous page Next pag W to search hp

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