On January 3, 2021, ABC acquired 60% of the outstanding shares of JKL an excess of cost over book value of P3,000,000. This excess was allocated to property, plant and equipment with 10 years of estimated useful life which half was already use. For the year ended December 31, 2022, JKL prepared the following condensed financial statements: Statement of Financial Position Current Assets P2,250,000 Liabilities P1,000,000 Property, Plant and 12,500,000 Share Capital 8,500,000 Equipment, net Accumulated Profits 5,250,000 Total P14,750,000 Total P14,750,000 Statement of Accumulated Profits Accumulate Profits, Beg P5,000,000 Sales P2,500,000 (1,250,000) (750,000) P500,000 Cost of Goods Sold Operating Expenses Net Income (250,000) | P5,250,000 Dividends Accumulated Profits, End JKL regularly sells merchandise to ABC at a price of 120% of cost. In 2021 and 2022, sales from JKL to ABC are as follows: Sales-2021 for P2,100,000 (inventory sold by ABC 1,800,000) ; Sales -2022 P1,200,000 (inventory unsold by ABC P750,000). On December 31, 2022 compute for the non-controlling interest in Net assets. Compute for the Profit attributable to Equity Holders of Parent or Controlling Interest in Net Income.
On January 3, 2021, ABC acquired 60% of the outstanding shares of JKL an excess of cost over book value of P3,000,000. This excess was allocated to property, plant and equipment with 10 years of estimated useful life which half was already use. For the year ended December 31, 2022, JKL prepared the following condensed financial statements: Statement of Financial Position Current Assets P2,250,000 Liabilities P1,000,000 Property, Plant and 12,500,000 Share Capital 8,500,000 Equipment, net Accumulated Profits 5,250,000 Total P14,750,000 Total P14,750,000 Statement of Accumulated Profits Accumulate Profits, Beg P5,000,000 Sales P2,500,000 (1,250,000) (750,000) P500,000 Cost of Goods Sold Operating Expenses Net Income (250,000) | P5,250,000 Dividends Accumulated Profits, End JKL regularly sells merchandise to ABC at a price of 120% of cost. In 2021 and 2022, sales from JKL to ABC are as follows: Sales-2021 for P2,100,000 (inventory sold by ABC 1,800,000) ; Sales -2022 P1,200,000 (inventory unsold by ABC P750,000). On December 31, 2022 compute for the non-controlling interest in Net assets. Compute for the Profit attributable to Equity Holders of Parent or Controlling Interest in Net Income.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:On January 3, 2021, ABC acquired 60% of the outstanding shares of JKL an excess of cost over book
value of P3,000,000. This excess was allocated to property, plant and equipment with 10 years of
estimated useful life which half was already use. For the year ended December 31, 2022, JKL prepared
the following condensed financial statements:
Statement of Financial Position
Current Assets
P2,250,000 Liabilities
P1,000,000
Plant
and
12,500,000 Share Capital
Property,
Equipment, net
8,500,000
Accumulated Profits
5,250,000
Total
P14,750,000 Total
P14,750,000
图
Statement of Accumulated Profits
Accumulate Profits, Beg
P5,000,000
Sales
P2,500,000
Cost of Goods Sold
(1,250,000)
(750,000)
P500,000
Operating Expenses
Net Income
(250,000) |
P5,250,000
Dividends
Accumulated Profits, End
JKL regularly sells merchandise to ABC at a price of 120% of cost. In 2021 and 2022, sales from JKL to
ABC are as follows: Sales-2021 for P2,100,000 (inventory sold by ABC 1,800,000) ; Sales -2022
P1,200,000 (inventory unsold by ABC P750,000). On December 31, 2022 compute for the non-controlling
interest in Net assets. Compute for the Profit attributable to Equity Holders of Parent or Controlling
Interest in Net Income.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education