January 1, 20x1, Entity A, a public entity, and Entity B, a public entity, incorporated C, which has its fiscal and operational autonomy. The contractual agreement of the incorporating entities provided that the decisions on relevant activities of Entity C will require the unanimous consent of both entities. Entity A and Entity B will have the rights to the net assets of Entity C. Entity A and Entity B invested P2,000,000 and P3,000,000 respectively, equivalent to 40:60 capital interest of Entity C. the financial statement of Entity C provided the following data for its two-year operation: 20x1 20x2 Net income (loss) 450,000 (P4,500,000) Dividends declared 225,000 REQUIRED: Compute the balance of investment in Entity C to be reported by: 9. Entity A on December 31, 20x2 10. Entity B on December 31, 20x2

January 1, 20x1, Entity A, a public entity, and Entity B, a public entity, incorporated C, which has its fiscal and operational autonomy. The contractual agreement of the incorporating entities provided that the decisions on relevant activities of Entity C will require the unanimous consent of both entities. Entity A and Entity B will have the rights to the net assets of Entity C. Entity A and Entity B invested P2,000,000 and P3,000,000 respectively, equivalent to 40:60 capital interest of Entity C. the financial statement of Entity C provided the following data for its two-year operation: 20x1 20x2 Net income (loss) 450,000 (P4,500,000) Dividends declared 225,000 REQUIRED: Compute the balance of investment in Entity C to be reported by: 9. Entity A on December 31, 20x2 10. Entity B on December 31, 20x2

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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