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Compute for the Profit attributable to Equity Holders of Parent or Controlling

Compute for the Profit attributable to Equity Holders of Parent or Controlling

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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On January 3, 2021, ABC acquired 60% of the outstanding shares of JKL an excess of cost over book value of P3,000,000. This excess was allocated to property, plant and equipment with 10 years of estimated useful life which half was already use. For the year ended December 31, 2022, JKL prepared the following condensed financial statements: Statement of Financial Position Current Assets P2,250,000 Liabilities P1,000,000 Property, Plant and 12,500,000 Share Capital 8,500,000 Equipment, net Accumulated Profits 5,250,000 Total P14,750,000 Total P14,750,000 Statement of Accumulated Profits Accumulate Profits, Beg P5,000,000 Sales P2,500,000 (1,250,000) (750,000) Cost of Goods Sold Operating Expenses Net Income P500,000 Dividends (250,000) Accumulated Profits, End P5,250,000 JKL regularly sells merchandise to ABC at a price of 120% of cost. In 2021 and 2022, sales from JKL to ABC are as follows: Sales-2021 for P2,100,000 (inventory sold by ABC 1,800,000); Sales -2022 P1,200,000 (inventory unsold by ABC P750,000). On December 31, 2022 compute for the non-controlling interest in Net assets. Compute for the Profit attributable to Equity Holders of Parent or Controlling Interest in Net Income.
Transcribed Image Text:On January 3, 2021, ABC acquired 60% of the outstanding shares of JKL an excess of cost over book value of P3,000,000. This excess was allocated to property, plant and equipment with 10 years of estimated useful life which half was already use. For the year ended December 31, 2022, JKL prepared the following condensed financial statements: Statement of Financial Position Current Assets P2,250,000 Liabilities P1,000,000 Property, Plant and 12,500,000 Share Capital 8,500,000 Equipment, net Accumulated Profits 5,250,000 Total P14,750,000 Total P14,750,000 Statement of Accumulated Profits Accumulate Profits, Beg P5,000,000 Sales P2,500,000 (1,250,000) (750,000) Cost of Goods Sold Operating Expenses Net Income P500,000 Dividends (250,000) Accumulated Profits, End P5,250,000 JKL regularly sells merchandise to ABC at a price of 120% of cost. In 2021 and 2022, sales from JKL to ABC are as follows: Sales-2021 for P2,100,000 (inventory sold by ABC 1,800,000); Sales -2022 P1,200,000 (inventory unsold by ABC P750,000). On December 31, 2022 compute for the non-controlling interest in Net assets. Compute for the Profit attributable to Equity Holders of Parent or Controlling Interest in Net Income.
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