What amount of non-controlling interest is to be presented in the consolidated statement of financial position on December 31, 2x19?Note: Just use the information that are provided. On January 5, 20x9, Parent Company acquired 80% of the outstanding shares of Subsidiary Company for P350,000. Thefinancial statements of Parent and Subsidiary Company before the acquisition follow:Subsidiary ParentCompany Company Value100,00050,000ParentCash700,000100,00055,000Inventory300,0001,000,000500,0001,000,000500,000365,000200,000PPE350,000200,000200,000100,000LiabilitiesOutstanding SharesRetained eamings Financial statements for Parent and Subsidiary for the year ended December 31, 2x19 follow:INCOME AND RETAINED EARNINGSParentSubsidiaryCompany Company800,00040,000(480,000) (250,000)(60.000)300,000500,000(100,000)Sales550,000Dividend incomeCost of salesOperating expensesNet incomeRetained eamings, Jan 1, 2019Dividends declared(150.000)150,000100,000(50.000)Retained eamings end700,000200,000BALANCE SHEETCash300,000125,000Receivables100,000650,000350,000900.00030,00045,000InventoryInvestmentin SubsidiaryPPE350,000Total2,300,000550,000600,0001,000,000Liabilities150,000200,000OutstandingsharesRetainedeamings700.000200.000Total2,300,000550,000AdditionalInfomation:1.The undervalued PPE of Subsidiary on the date of acquisition has a remaining useful life of 5-years.Subsidiary Company owes Parent Company P5,000 on December 31, 2x19.

Non-controlling interest is also termed as minority interest which shall refer to those…

Answered: On January 5, 20x9, Parent Company…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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What amount of non-controlling interest is to be presented in the consolidated statement of financial position on December 31, 2x19?

Note: Just use the information that are provided.

On January 5, 20x9, Parent Company acquired 80% of the outstanding shares of Subsidiary Company for P350,000. The
financial statements of Parent and Subsidiary Company before the acquisition follow:
Subsidiary Parent
Company Company Value
100,000
50,000
Parent
Cash
700,000
100,000
55,000
Inventory
300,000
1,000,000
500,000
1,000,000
500,000
365,000
200,000
PPE
350,000
200,000
200,000
100,000
Liabilities
Outstanding Shares
Retained eamings

Financial statements for Parent and Subsidiary for the year ended December 31, 2x19 follow:
INCOME AND RETAINED EARNINGS
Parent
Subsidiary
Company Company
800,000
40,000
(480,000) (250,000)
(60.000)
300,000
500,000
(100,000)
Sales
550,000
Dividend income
Cost of sales
Operating expenses
Net income
Retained eamings, Jan 1, 2019
Dividends declared
(150.000)
150,000
100,000
(50.000)
Retained eamings end
700,000
200,000
BALANCE SHEET
Cash
300,000
125,000
Receivables
100,000
650,000
350,000
900.000
30,000
45,000
Inventory
Investmentin Subsidiary
PPE
350,000
Total
2,300,000
550,000
600,000
1,000,000
Liabilities
150,000
200,000
Outstandingshares
Retainedeamings
700.000
200.000
Total
2,300,000
550,000
AdditionalInfomation:
1.
The undervalued PPE of Subsidiary on the date of acquisition has a remaining useful life of 5-years.
Subsidiary Company owes Parent Company P5,000 on December 31, 2x19.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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