On January 2, 2021 PAMIGAY CORP paid P380,000 cash and issued 120,000 new shares of its P5 par value common stock valued at P20 a share for all of SAYO CORP’s outstanding common shares in an acquisition. PAMIGAY CORP paid P15,000 for registering and issuing securities and P10,000 for other direct costs of the business combination. The fair value and book value of SAYO CORP’s identifiable assets and liabilities were the same. Summarized balance sheet information for both companies just before the acquisition on January 2, 2021 is as follows: PAMIGAY CORP SAYO CORP Cash P 1,150,000 P 120,000 Inventories 320,000 400,000 Other current assets 500,000 500,000 Land 350,000 250,000 PPE, net 2,500,000 1,400,000 Goodwill 500,000 100,000 Total Assets P 5,320,000 P 2,770,000 Accounts payable P1,000,000 P 300,000 Notes payable 1,300,000 660,000 Capital stock, P5 par 2,000,000 500,000 Additional Paid-in capital 1,000,000 100,000 Retained Earnings 20,000 1,210,000 Total Liabilities & Equities P 5,320,000 P 2,770,000 How much is the cash to be presented on the consolidated statement of financial position as of the date of acquisition?
On January 2, 2021 PAMIGAY CORP paid P380,000 cash and issued 120,000 new shares of its P5 par value common stock valued at P20 a share for all of SAYO CORP’s outstanding common shares in an acquisition. PAMIGAY CORP paid P15,000 for registering and issuing securities and P10,000 for other direct costs of the business combination. The fair value and book value of SAYO CORP’s identifiable assets and liabilities were the same. Summarized balance sheet information for both companies just before the acquisition on January 2, 2021 is as follows:
|
|
PAMIGAY CORP |
SAYO CORP |
|
Cash |
P 1,150,000 |
P 120,000 |
|
Inventories |
320,000 |
400,000 |
|
Other current assets |
500,000 |
500,000 |
|
Land |
350,000 |
250,000 |
|
PPE, net |
2,500,000 |
1,400,000 |
|
|
500,000 |
100,000 |
|
Total Assets |
P 5,320,000 |
P 2,770,000 |
|
|
|
|
|
Accounts payable |
P1,000,000 |
P 300,000 |
|
Notes payable |
1,300,000 |
660,000 |
|
Capital stock, P5 par |
2,000,000 |
500,000 |
|
Additional Paid-in capital |
1,000,000 |
100,000 |
|
|
20,000 |
1,210,000 |
|
Total Liabilities & Equities |
P 5,320,000 |
P 2,770,000 |
How much is the cash to be presented on the consolidated
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