Hello, I'm having issues with the books problem questions. The problem is looking for the "Total Assets & Liabilities." On July 1, 1019, Prime Company borrowed P320,000 to purchase 80% of the outstanding commonstock of Stef Company. This loan, carrying a 12% interest is payable in 10 annual installmentsbeginning July 1, 2020. Summarized portions of Prime Company's and Stef Company's statementof financial position as of June 30, 2019, are as follows:PrimeStef600,000310,000290,000The book values of Steff Company's assets and liabilities approximated market values, except foraccounts payabl;e, which had a fair value that was P10,000 more than the book value. Anyremaining difference is attributable to goodwill. The company uses the fair value method inTotal assets1,600,000Total liabilities500,000Total shareholders' equity1,100,000accounting for goodwill.

On 01.07.2019, Prime company borrowed amount = P320000 This amount is borrowed to purchase the…

On July 1, 2019, Prime Company borrowed P320,000 to purchase 80% of the outstanding common stock of Stef Company. This loan, carrying a 12% interest is payable in 10 annual installments beginning July 1, 2020. Summarized portions of Prime Company's and Stef Company's statement of financial position as of June 30, 2019, are as follows: Prime Stef 1,600,000 500,000 1,100,000 600,000 310,000 290,000 The book values of Steff Company's assets and liabilities approximated market values, except for accounts payabl;e, which had a fair value that was P10,000 more than the book value. Any remaining difference is attributable to goodwill. The company uses the fair value method in Total assets Total liabilities Total shareholders' equity accounting for goodwill.

On July 1, 2019, Prime Company borrowed P320,000 to purchase 80% of the outstanding common stock of Stef Company. This loan, carrying a 12% interest is payable in 10 annual installments beginning July 1, 2020. Summarized portions of Prime Company's and Stef Company's statement of financial position as of June 30, 2019, are as follows: Prime Stef 1,600,000 500,000 1,100,000 600,000 310,000 290,000 The book values of Steff Company's assets and liabilities approximated market values, except for accounts payabl;e, which had a fair value that was P10,000 more than the book value. Any remaining difference is attributable to goodwill. The company uses the fair value method in Total assets Total liabilities Total shareholders' equity accounting for goodwill.

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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