Compute for the Non Controlling Interest on June 30, 2023
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Compute for the Non Controlling Interest on June 30, 2023
![On June 30, 2021, ABC Co. acquired 75,000 of DEF Co.'s 100,000 outstanding shares with par value per share of P1 for #4 per share.
At this time, DEF's shares have a quoted price of P3.50 per share and DEF's retained earnings is P80,000.
Additional information:
DEF's total assets include land classified as investment property at a cost of P180,000. The land's fair values are P200,000 on
acquisition date and P320,000 on June 30, 2023. DEF uses the cost model for its investment properties. However, the group
uses the fair value model.
• On acquisition date, DEF's building classified as property, plant, and equipment had a fair value of P30,000 in excess of its
carrying amount. The building's remaining useful life is 5 years. The group uses the straight-line method of depreciation.
• The current accounts on June 30, 2023 include intercompany receivables and payables of P10,000.
An impairment test on June 30, 2023 concluded that goodwill is impaired by P20,000.
NCI is measured at fair value.
There are no subsequent changes in DEF's outstanding shares.
The June 30, 2023 individual financial statements of the entities show the following information:
ABC Co.
DEF Co.
Total assets
1,000,000
500,000
Total liabilities
200,000
120,000
Share capital
Retained earnings
300,000
100,000
500,000
280,000
Total liabilities and equity
1,000,000
500,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd3bdc038-c0b4-4cbd-90ee-be2107f85b2e%2Fa647aae4-060f-41ef-94a5-e7e0a33b6d19%2Fnayydml_processed.jpeg&w=3840&q=75)
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