Assume during 20x2, P Corporation sold merchandise again to S Company for P25,000 at a gross margin of 20%. Of this merchandise, P6,000 remains in the ending inventories of S Company on December 31, 20x2 Parent Subsidiary Statement of Financial Position Cash 231,000 85,000 Accounts receivable, net 150,000 80,000 Inventory 180,000 90,000 PPE 475,000 300,000 Investment in subsidiary 300,000 Total Assets 1,336,000 555,000 Accounts payable 100,000 100,000 Bonds Payable 200,000 100,000 Share capital: P Company S Company 500,000 200,000 Retained Earnings 536,000 155,000 Total Liabilities and equity 1,336,000 555,000 Statement of Comprehensive Income Sales 450,000 300,000 Dividend Income 32,000 Total Revenue 482,000 300,000 Cost of Goods Sold 180,000 160,000 Operating Expenses 50,000 20,000 Other Expenses 60,000 45,000 Total Cost and expenses 290,000 225,000 NET/CONSOLIDATED CI 192,000 75,000

Assume during 20x2, P Corporation sold merchandise again to S Company for P25,000 at a gross margin of 20%. Of this merchandise, P6,000 remains in the ending inventories of S Company on December 31, 20x2 Parent Subsidiary Statement of Financial Position Cash 231,000 85,000 Accounts receivable, net 150,000 80,000 Inventory 180,000 90,000 PPE 475,000 300,000 Investment in subsidiary 300,000 Total Assets 1,336,000 555,000 Accounts payable 100,000 100,000 Bonds Payable 200,000 100,000 Share capital: P Company S Company 500,000 200,000 Retained Earnings 536,000 155,000 Total Liabilities and equity 1,336,000 555,000 Statement of Comprehensive Income Sales 450,000 300,000 Dividend Income 32,000 Total Revenue 482,000 300,000 Cost of Goods Sold 180,000 160,000 Operating Expenses 50,000 20,000 Other Expenses 60,000 45,000 Total Cost and expenses 290,000 225,000 NET/CONSOLIDATED CI 192,000 75,000

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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