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CARDO COMPANY eFair Value P500,000 Accounts Pay 240,000 Mortgage Pay 200,000 Ordinary Shat 520,000 Retained Ear

CARDO COMPANY eFair Value P500,000 Accounts Pay 240,000 Mortgage Pay 200,000 Ordinary Shat 520,000 Retained Ear

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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PROBLEM 1 The following balances were taken from the trial balance of CARDO Company and SYANO Company at the start of the fiscal year 20x7: CARDO COMPANY Book Value Fair Value P450,000 200,000 595,000 260,000 Book Value P500,000 Fair Value Cash P500,000 Accounts Payable 240,000 Mortgage Payable 200,000 Ordinary Shares 520,000 Retained Earnings P440,000 220,000 Accounts Receivable Inventory Fixed Assets (Net) 250,000 155,000 600,000 SYANO COMPANY Book Value Fair Value Book Value Fair Value P340,000 220,000 P300,000 150,000 125,000 400,000 Cash Accounts Receivable Inventory Fixed Assets (Net) P300,000 Accounts Payable 160,000 Mortgage Payable 100,000 Ordinary Shares 420,000 Retained Earnings P350,000 200,000 250,000 175,000 From the data above, journalize the necessary entries in the books of the acquiring company needed for the business combination, and prepare the consolidated balance sheet right after the combination assuming the following independent transactions. If CARDO Co purchases the net assets of SYANO Co by issuing 5,000 shares of their P20 par value shares with a fair value of P40 per share, incurs a mortgage loan for P90,000, pays P150,000 cash and paying direct, indirect and stock issue costs of P75,000, P50,000 and P40,000 respectively. 1. PIENTIA CONSOLIDATED BALANCE SHEET OF CARDO Cash Accounts Receivable Inventory Fixed Assets (Net) Accounts Payable Mortgage Payable Ordinary Shares (par 20) Retained Earnings ТОTAL ТОTAL 1911 VERS
Transcribed Image Text:PROBLEM 1 The following balances were taken from the trial balance of CARDO Company and SYANO Company at the start of the fiscal year 20x7: CARDO COMPANY Book Value Fair Value P450,000 200,000 595,000 260,000 Book Value P500,000 Fair Value Cash P500,000 Accounts Payable 240,000 Mortgage Payable 200,000 Ordinary Shares 520,000 Retained Earnings P440,000 220,000 Accounts Receivable Inventory Fixed Assets (Net) 250,000 155,000 600,000 SYANO COMPANY Book Value Fair Value Book Value Fair Value P340,000 220,000 P300,000 150,000 125,000 400,000 Cash Accounts Receivable Inventory Fixed Assets (Net) P300,000 Accounts Payable 160,000 Mortgage Payable 100,000 Ordinary Shares 420,000 Retained Earnings P350,000 200,000 250,000 175,000 From the data above, journalize the necessary entries in the books of the acquiring company needed for the business combination, and prepare the consolidated balance sheet right after the combination assuming the following independent transactions. If CARDO Co purchases the net assets of SYANO Co by issuing 5,000 shares of their P20 par value shares with a fair value of P40 per share, incurs a mortgage loan for P90,000, pays P150,000 cash and paying direct, indirect and stock issue costs of P75,000, P50,000 and P40,000 respectively. 1. PIENTIA CONSOLIDATED BALANCE SHEET OF CARDO Cash Accounts Receivable Inventory Fixed Assets (Net) Accounts Payable Mortgage Payable Ordinary Shares (par 20) Retained Earnings ТОTAL ТОTAL 1911 VERS
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