SeyPROBLEM 2-3Condensed Statements of Financial Position of Love Corp. and You Corp.as of December 31, 2021 are as follows:Current assetsNoncurrent assetsLiabilitiesOrdinary shares, P20 parShare premiumRetained earningsLoveP175,000725,00065,000550,00035,000250,000YouP65,000425,00035,000300,00025,000130,000On January 1, 2022, Love Corp. issued 35,000 shares with a market valueof P25/share for the assets and liabilities of You Corp. CHAPTER 2: CONSOLIDATION - DATEOF ACQUISITIONthat the noncurrent assets of You have fair values of P630,000, and theThe book value reflects the fair value of the assets and liabilities exceptconsideration, which is determinable, is equal to P15,000. Love also paidnoncurrent assets of Love are overstated by P30,000. Contingentfor the stock issuance costs worth P34,000 and other acquisition costsamounting to P10,000.Required1. Consolidated assets as of date of acquisition.2. Consolidated equity as of date of acquisition.PROBLEM 2-4

Combining the assets, liabilities, and other financial components of two or more entities into one…

Condensed Statements of Financial Position of Love Corp. and You Corp. as of December 31, 2021 are as follows: Current assets Noncurrent assets Liabilities Ordinary shares, P20 par Share premium Love You P175,000 P65,000 725,000 425,000 65,000 35,000 550,000 300,000 35,000 25,000

Condensed Statements of Financial Position of Love Corp. and You Corp. as of December 31, 2021 are as follows: Current assets Noncurrent assets Liabilities Ordinary shares, P20 par Share premium Love You P175,000 P65,000 725,000 425,000 65,000 35,000 550,000 300,000 35,000 25,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

Sey
PROBLEM 2-3
Condensed Statements of Financial Position of Love Corp. and You Corp.
as of December 31, 2021 are as follows:
Current assets
Noncurrent assets
Liabilities
Ordinary shares, P20 par
Share premium
Retained earnings
Love
P175,000
725,000
65,000
550,000
35,000
250,000
You
P65,000
425,000
35,000
300,000
25,000
130,000
On January 1, 2022, Love Corp. issued 35,000 shares with a market value
of P25/share for the assets and liabilities of You Corp.

CHAPTER 2: CONSOLIDATION - DATE
OF ACQUISITION
that the noncurrent assets of You have fair values of P630,000, and the
The book value reflects the fair value of the assets and liabilities except
consideration, which is determinable, is equal to P15,000. Love also paid
noncurrent assets of Love are overstated by P30,000. Contingent
for the stock issuance costs worth P34,000 and other acquisition costs
amounting to P10,000.
Required
1. Consolidated assets as of date of acquisition.
2. Consolidated equity as of date of acquisition.
PROBLEM 2-4

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