Determine the following asset balances that would appear in the consolidated financial statements of Portland and its 80% owned subsidiary:1) Current Assets2) Land3) Building and Equipment4) Goodwill5) Investment in Sidney Corporation6) Ordinary shares7) Retained earnings8) Minority interest9) Goodwill and minority interest assuming that Sydney’s shares are traded in the stock marketat P 20/share. Portland Corporation purchased 80% of the voting common stock of Sidney Corporation for P2,760,000cash on January 2, 2020. On this date, before combination, the book value and fair value of Portland andSidney were as follows:Portland CorporationBook valueP 3,000,000800,0001,100,000900,0003,100,0006,000,0003,500,000P18,400,000400,0001,500,000Sidney CorporationFair value60,000200,000500,000200,000600,0001,800,000600,000P3,960,000200,000560,000Fair valueBook valueP 3,000,000800,0001,200,000900,0004,000,0008,000,0004,500,000P22,400,000400,0001,600,000CashReceivables - net60,000200,000400,000150,000500,0001,000,000800,000P3,110,000200,000610,0002,000,000300,000P3,110,000PPInventoriesOther current assetsLandBuildings - netEquipment - netAccounts payableOther liabilitiesShare capital, P10 P15,000,000Retained earnings1,500,000P18,400,000Determine the following asset balances that would appear in the consolidated financial statementsof Portland and its 80% owned subsidiary:Current Assets1)2)3)LandBuilding and EquipmentGoodwill4)Investment in Sidney Corporation5)6)Ordinary shares7)Retained earnings8)Minority interest9)Goodwill and minority interest assuming that Sydney's shares are traded in the stock marketat P 20/share.

In the preparation of the consolidated financial statements, Book values in case of Parent company…

Determine the following asset balances that would appear in the consolidated financial statements of Portland and its 80% owned subsidiary: 1) Current Assets 2) Land 3) Building and Equipment 4) Goodwill 5) Investment in Sidney Corporation 6) Ordinary shares 7) Retained earnings 8) Minority interest 9) Goodwill and minority interest assuming that Sydney’s shares are traded in the stock market at P 20/share.

Determine the following asset balances that would appear in the consolidated financial statements of Portland and its 80% owned subsidiary: 1) Current Assets 2) Land 3) Building and Equipment 4) Goodwill 5) Investment in Sidney Corporation 6) Ordinary shares 7) Retained earnings 8) Minority interest 9) Goodwill and minority interest assuming that Sydney’s shares are traded in the stock market at P 20/share.

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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Question

Determine the following asset balances that would appear in the consolidated financial statements of Portland and its 80% owned subsidiary:
1) Current Assets
2) Land
3) Building and Equipment
4) Goodwill
5) Investment in Sidney Corporation
6) Ordinary shares
7) Retained earnings
8) Minority interest
9) Goodwill and minority interest assuming that Sydney’s shares are traded in the stock market
at P 20/share.

Portland Corporation purchased 80% of the voting common stock of Sidney Corporation for P2,760,000
cash on January 2, 2020. On this date, before combination, the book value and fair value of Portland and
Sidney were as follows:
Portland Corporation
Book value
P 3,000,000
800,000
1,100,000
900,000
3,100,000
6,000,000
3,500,000
P18,400,000
400,000
1,500,000
Sidney Corporation
Fair value
60,000
200,000
500,000
200,000
600,000
1,800,000
600,000
P3,960,000
200,000
560,000
Fair value
Book value
P 3,000,000
800,000
1,200,000
900,000
4,000,000
8,000,000
4,500,000
P22,400,000
400,000
1,600,000
Cash
Receivables - net
60,000
200,000
400,000
150,000
500,000
1,000,000
800,000
P3,110,000
200,000
610,000
2,000,000
300,000
P3,110,000
P
P
Inventories
Other current assets
Land
Buildings - net
Equipment - net
Accounts payable
Other liabilities
Share capital, P10 P15,000,000
Retained earnings
1,500,000
P18,400,000
Determine the following asset balances that would appear in the consolidated financial statements
of Portland and its 80% owned subsidiary:
Current Assets
1)
2)
3)
Land
Building and Equipment
Goodwill
4)
Investment in Sidney Corporation
5)
6)
Ordinary shares
7)
Retained earnings
8)
Minority interest
9)
Goodwill and minority interest assuming that Sydney's shares are traded in the stock market
at P 20/share.

Definition Definition Intangible asset that includes proprietary or intellectual property and brand value of a firm. Goodwill is recorded in the books when a firm purchases another firm and the purchase price is more than the fair value of net identifiable assets of the acquired business. The amount of goodwill is recorded on the asset side of the balance sheet (statement of financial position).

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