1/2RO 100%FindP Co acquired 75% of the shares in S Co on 1 January 20X2 when the retained eanings of S Co stoodat $10,000. The fair value of the NCI at the date of acquisition was $15,000. During the year to 31December 20X2, S Co sold goods to P Co for $20,000 at a mark-up of 25%. 50% of these goods werestill unsold by P Co at the end of the year. At the same date, P Co owed S Co $12,000 for goods boughtand this debt is included in the trade payables of P Co and the trade receivables of S CoDraft statements of financial position of each company at 31 December 20X2 were as follows.P Co%24S Co24242.AssetsNon-current assetsTangible assetsInvestment in S Co at cost80,00046,00040,000126,000Current assetsTrade receivables30,00010,00025,0005,000Inventories40,000166,00030,00070,000Total assetsEquity and liabilitiesEquityOrdinary shares of $1 eachRetained earnings100,00045,00030,00022,000145,00052,000Current liabilitiesTrade payablesTotal equity and liabilities21,000166,00018,00070,000RequiredPrepare a draft consolidated statement of financial position for P Co.Solution36°CAWTo download more visit http://freeaccastuc2318

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P Co acquired 75% of the shares in S Co on 1 January 20X2 when the retained earnings of S Co stood at $10,000. The fair value of the NCI at the date of acquisition was $15,000. During the year to 31 December 20X2, S Co sold goods to P Co for $20,000 at a mark-up of 25%. 50% of these goods were still unsold by P Co at the end of the year. At the same date, P Co owed S Co $12,000 for goods bought and this debt is included in the trade payables of P Co and the trade receivables of S Co. Draft statements of financial position of each company at 31 December 20X2 were as follows. P Co %24 S Co 2. %24 Assets Non-current assets Tangible assets Investment in S Co at cost 40,000 80,000 46,000 126,000 Current assets Trade receivables 30,000 10,000 25,000 5,000 Inventories 40,000 166,000 30,000 70,000 Total assets Equity and liabilities Equity Ordinary shares of $1 each Retained earnings 100,000 45,000 30,000 22,000 145,000 52,000 Current liabilities Trade payables Total equity and liabilities 21,000 166,000 18,000 70,000 Required Prepare a draft consolidated statement of financial position for P Co.

P Co acquired 75% of the shares in S Co on 1 January 20X2 when the retained earnings of S Co stood at $10,000. The fair value of the NCI at the date of acquisition was $15,000. During the year to 31 December 20X2, S Co sold goods to P Co for $20,000 at a mark-up of 25%. 50% of these goods were still unsold by P Co at the end of the year. At the same date, P Co owed S Co $12,000 for goods bought and this debt is included in the trade payables of P Co and the trade receivables of S Co. Draft statements of financial position of each company at 31 December 20X2 were as follows. P Co %24 S Co 2. %24 Assets Non-current assets Tangible assets Investment in S Co at cost 40,000 80,000 46,000 126,000 Current assets Trade receivables 30,000 10,000 25,000 5,000 Inventories 40,000 166,000 30,000 70,000 Total assets Equity and liabilities Equity Ordinary shares of $1 each Retained earnings 100,000 45,000 30,000 22,000 145,000 52,000 Current liabilities Trade payables Total equity and liabilities 21,000 166,000 18,000 70,000 Required Prepare a draft consolidated statement of financial position for P Co.

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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