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Corporation PX acquired 2,000 shares of the voting stock of Corporation SX in the open market at P 50 per share. Balance sheets of both companies on January 1, 2020, immediately after the acquisition of shares of PX, are as follows: Corporation PX P 50,000 80,000 95,000 Investment in Corporation SX 100,000 Machinery and equipment (net) 100,000 50,000 P 475,000 P 75,000 250,000 90,000 60.000 Total liabilities and SHE P 475,000 Corporation SX P 10,000 40,000 10,000 Cash Temporary investments Receivables (net) Land Total assets Accounts payable Common stock (P 20 par) Excess over par Retained earnings 45,000 20,000 P 125,000 P 25,000 50,000 30,000 20,000 P 125,000 The fair values of PX and SX assets on January 1, 2020, are presented below. Liabilities of both companies are prop valued at their respective book value: SX P 10,000 50,000 8,000 PX P 50,000 100,000 95,000 Investment in Corporation SX 100,000 Machinery and equipment (net) 110,000 100,000 P 555,000 Cash Temporary investment Receivables (net) 40,000 30,000 P 138,000 Land vas ).com

Corporation PX acquired 2,000 shares of the voting stock of Corporation SX in the open market at P 50 per share. Balance sheets of both companies on January 1, 2020, immediately after the acquisition of shares of PX, are as follows: Corporation PX P 50,000 80,000 95,000 Investment in Corporation SX 100,000 Machinery and equipment (net) 100,000 50,000 P 475,000 P 75,000 250,000 90,000 60.000 Total liabilities and SHE P 475,000 Corporation SX P 10,000 40,000 10,000 Cash Temporary investments Receivables (net) Land Total assets Accounts payable Common stock (P 20 par) Excess over par Retained earnings 45,000 20,000 P 125,000 P 25,000 50,000 30,000 20,000 P 125,000 The fair values of PX and SX assets on January 1, 2020, are presented below. Liabilities of both companies are prop valued at their respective book value: SX P 10,000 50,000 8,000 PX P 50,000 100,000 95,000 Investment in Corporation SX 100,000 Machinery and equipment (net) 110,000 100,000 P 555,000 Cash Temporary investment Receivables (net) 40,000 30,000 P 138,000 Land vas ).com

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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1) In the consolidated balance sheet, the total temporary investment should be reported at:


2) In the consolidated balance sheet, the receivables should be reported at

Corporation PX acquired 2,000 shares of the voting stock of Corporation SX in the open market at P 50 per share. Balance sheets of both companies on January 1, 2020, immediately after the acquisition of shares of PX, are as follows: Corporation PX P 50,000 80,000 95,000 Investment in Corporation SX 100,000 Machinery and equipment (net) 100,000 50,000 P 475,000 P 75,000 250,000 90,000 60.000 Total liabilities and SHE P 475,000 Corporation SX P 10,000 40,000 10,000 Cash Temporary investments Receivables (net) Land Total assets Accounts payable Common stock (P 20 par) Excess over par Retained earnings 45,000 20,000 P 125,000 P 25,000 50,000 30,000 20,000 P 125,000 The fair values of PX and SX assets on January 1, 2020, are presented below. Liabilities of both companies are prop valued at their respective book value: SX P 10,000 50,000 8,000 PX P 50,000 100,000 95,000 Investment in Corporation SX 100,000 Machinery and equipment (net) 110,000 100,000 P 555,000 Cash Temporary investment Receivables (net) 40,000 30,000 P 138,000 Land vas ).com
Transcribed Image Text:Corporation PX acquired 2,000 shares of the voting stock of Corporation SX in the open market at P 50 per share. Balance sheets of both companies on January 1, 2020, immediately after the acquisition of shares of PX, are as follows: Corporation PX P 50,000 80,000 95,000 Investment in Corporation SX 100,000 Machinery and equipment (net) 100,000 50,000 P 475,000 P 75,000 250,000 90,000 60.000 Total liabilities and SHE P 475,000 Corporation SX P 10,000 40,000 10,000 Cash Temporary investments Receivables (net) Land Total assets Accounts payable Common stock (P 20 par) Excess over par Retained earnings 45,000 20,000 P 125,000 P 25,000 50,000 30,000 20,000 P 125,000 The fair values of PX and SX assets on January 1, 2020, are presented below. Liabilities of both companies are prop valued at their respective book value: SX P 10,000 50,000 8,000 PX P 50,000 100,000 95,000 Investment in Corporation SX 100,000 Machinery and equipment (net) 110,000 100,000 P 555,000 Cash Temporary investment Receivables (net) 40,000 30,000 P 138,000 Land vas ).com
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