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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Consolidated Retained Earnings *
Non-Controlling Interest

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
Transcribed Image Text: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
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