On January 1, 2018, Parent Co. acquired 80% of the ordinary shares of Subsidiary Co. for P1,000,000. At the time ofacquisition, Subsidiary's Ordinary shares, share premium and retained earnings were P100,000, P400,000 andP500,000 respectively. The identifiable assets and liabilities of the Subsidiary were fairly valued. The assets of theSubsidiary included goodwill of P50,000.The following income statement data were prepared by Parent and Subsidiary on December 31, 2019:Parent Subsidiary400,000750,00050,00015,000150,000300,000150,00050,000SalesOther incomeCost of goods soldOperating expensesDuring 2019, the Subsidiary declared dividends of P50,000. The dividend received by the parent was recorded as partof dividend income (included in other income). On January 1, 2019, Parent purchaseda machine from the subsidiaryfor P40,000. This was carried at Subsidiary's books at P25,000. The remaining life of the machine was 5 years.Since the purchase date, Subsidiary Co. bought merchandise from Parent Co. and the selling price of Parent Co. was125% on cost. Intercompany sales during the year 2018 totaled P150,000. The inventory held by Subsidiary Co.acquired from Parent was P15,000 on January 1, 2018 and P18,000 on December 31, 2018.36. What is the consolidated net income attributable to parent to be reported in the consolidatedstatement of comprehensive income at December 31, 2019?A. 469,520B. 469,400C. 471,800D. 511,80037. What is the non-controlling interest net income to be reported in the consolidated statement ofcomprehensive income at December 31, 2019?A. 40,000B. 40,600C. 43,000D. 42,880

Name: On January 1, 2018, Parent Co. acquired 80% of the ordinary shares of
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Description: On January 1, 2018, Parent Co. acquired 80% of the ordinary shares of Subsidiary Co. for P1,000,000. At the time ofacquisition, Subsidiary's Ordinary shares, share premium and retained earnings were P100,000, P400,000 andP500,000 respectively. The i

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On January 1, 2018, Parent Co. acquired 80% of the ordinary shares of Subsidiary Co. for P1,000,000. acquisition, Subsidiary's Ordinary shares, share premium and retained earnings were P100,000, P P500,000 respectively. The identifiable assets and liabilities of the Subsidiary were fairly valued. The Subsidiary included goodwill of P50,000. The following income statement data were prepared by Parent and Subsidiary on December 31, 2019: Parent Subsidiary 750,000 400,000 50,000 15,000 300,000 150,000 150,000 50,000 Sales Other income Cost of goods sold Operating expenses During 2019, the Subsidiary declared dividends of P50,000. The dividend received by the parent was re of dividend income (included in other income). On January 1, 2019, Parent purchased a machine from

On January 1, 2018, Parent Co. acquired 80% of the ordinary shares of Subsidiary Co. for P1,000,000. acquisition, Subsidiary's Ordinary shares, share premium and retained earnings were P100,000, P P500,000 respectively. The identifiable assets and liabilities of the Subsidiary were fairly valued. The Subsidiary included goodwill of P50,000. The following income statement data were prepared by Parent and Subsidiary on December 31, 2019: Parent Subsidiary 750,000 400,000 50,000 15,000 300,000 150,000 150,000 50,000 Sales Other income Cost of goods sold Operating expenses During 2019, the Subsidiary declared dividends of P50,000. The dividend received by the parent was re of dividend income (included in other income). On January 1, 2019, Parent purchased a machine from

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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The following information relates to Adele Ltd. Since the date of acquisition, Adele Ltd has held interests in multiple subsidiaries totalling DNCI of 25%, and INCI of 15%. The following summarised financial information is provided: Retained earnings at DOA $236,000 Retained earnings at 1/7/2020 $476,000 Current period profit for year ended 30/6/2021 $117,000 a) Based on the financial information you have available, prepare the journal entries to record the allocation to NCI upon consolidation on 30 June, 2021.
On January 1, 2020, Parent Company purchased 80% of the common stock of Subsidiary Company for $320,000. · On this date, Subsidiary had common stock, other paid-in capital, and retained earnings of $40,000, $120,000, and $190,000, respectively. · Net income and dividends for Subsidiary Company were $50,000 and $10,000, respectively. · Parent Company has used the simple equity method for recording the Subsidiary income and dividends. · On January 1, 2020, the only tangible assets of Subsidiary that were undervalued were inventory and equipment. Inventory was worth $5,000 more than cost. Equipment, which was worth $15,000 more than book value, has a remaining life of 5 years, and straight-line depreciation is used. Any remaining excess is goodwill. The following trial balances of the two companies are prepared on December 31, 2020. d. Prepare the consolidated worksheet. e. Prepare the 2020 consolidated income statement and balance sheet.
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Accounting On January 1, 2020, Parent Company purchased 80% of the common stock of Subsidiary Company for $320,000. On this date, Subsidiary had common stock, other paid-in capital, and retained earnings of $40,000, $120,000, and $190,000, respectively. Net income and dividends for Subsidiary Company were $50,000 and $10,000, respectively. Parent Company has used the simple equity method for recording the Subsidiary income and dividends. On January 1, 2020, the only tangible assets of Subsidiary that were undervalued were inventory and equipment. Inventory was worth $5,000 more than cost. Equipment, which was worth $15,000 more than book value, has a remaining life of 5 years, and straight-line depreciation is used. Any remaining excess is goodwill. The following trial balances of the two companies are prepared on December 31, 2020. Parent Subsidiary Investment in Sub 352,000 Current Assets 132,000…
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On January 1, 2022, Pet Company purchased 80% of the shares of Sam Company for P1,000,000. The shareholders' equity of Sam Company on that date showed: Ordinary Shares - P570,000 and Retained Earnings - P490,000. Non-controlling interest is initially measured at proportionate share of subsidiary's net assets.On April 30, 2022, Pet acquired used machinery for P84,000 from Sam that was being carried in the latter's books at P105,000. The asset still has a remaining useful life of 5 years. On the other hand, on August 31, 2022, Sam purchased an equipment that was already 20% depreciated from Pet for P345,000. The original cost of this equipment was P375,000 and had a remaining life of 8 years.Net income of Pet Company and Sam Company for 2022 amounted to P360,000 and P155,000. Dividends paid totaled to P115,000 and P52,500 for Pet and Sam, respectively.Required:On the consolidated financial statements in 2022, how much would be the Non-controlling interest in net asset of subsidiary…
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