Parent Company acquired 18,000 shares of S Company's ordinary share on January 1, 2021, for payment ofP3,000,000 when S Company's stockholders' equity section appeared as follows:Ordinary Share, P100 par, 25,000 shares issuedShare PremiumRetained EarningsTotal Stockholders' EquityP2,500,000700,000800,000200,000Assets and liabilities of S Company has book values approximately equal to their fair values except for its inventorywith a book value of P100,000 and a fair value of P130,000 and land with a book value of P400,000 and a fair valueof P420,000. Assuming the use of full-goodwill approach, compute for the goodwill.

Goodwill is the difference between the purchase consideration and the fair value of net identifiable…

Answered: Parent Company acquired 18,000 shares…

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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On January 1, 2020, Chen Company acquired 10,000 shares of GHI Corporation for P600, 000. GHI Corporation has the following equity account on January 1, 2020. 10% Non-Cumulative Preference Shares, par value P100; Authorized shares, 100,000; Issued and outstanding, 50,000 shares - P 5,000,000 Ordinary Shares, P50 par value; Authorized shares, 500,000; Issued and outstanding, 75,000 shares Retained Earnings - 25,000,000 - 10,000,000 On January 1, 2021, Chen acquired an additional 5,000 shares of GHI Corporation for P300, 000. The acquisition resulted in 20% ownership, which is considered significant since Chen was able to get a seat in the board of directors of GHI Corporation. GHI Corporation has the following fair values of its shares as follows: 2020 - P65 per share 2021 - P72 per share GHI Corporation reported the following at year-end: Net Income Dividends 2020 2021 P5,000,000 6,500,000 P2,000,000 3,000,000 Requirements: 1. Prepare the necessary journal entries to record the above…
The equity section of Windsor SA appears below as of December 31, 2022. Share capital-preference (6% preference shares, R$50 par value, authorized 94,600 shares, outstanding 84,600 shares) Share capital-ordinary (R$1 par, authorized and issued 10,000,000 shares) Share premium-ordinary Retained earnings Net income Earnings Per Share: Income from continuing operations Discontinued operations, net of tax R$125,960,000 Net income 31,020,000 R$ R$4,230,000 Net income for 2022 reflects a total effective tax rate of 20%. Included in the net income figure is a loss of R$11,280,000 (before tax) as a result of discontinued operations. Preference dividends of R$253,800 were declared and paid in 2022. Dividends of R$ 940,000 were declared and paid to ordinary shareholders in 2022. 10,000,000 Compute earnings per share data as it should appear on the income statement of Windsor SA. (Round answers to 2 decimal places, e.g. 1.48.) 19,270,000 156,980,000 R$190,480,000
On January 1, 2020, Splish Industries had stock outstanding as follows. 6% Cumulative preferred stock, $100 par value, issued and outstanding 9,600 shares $960,000 Common stock, $10 par value, issued and outstanding 181,000 shares 1,810,000 To acquire the net assets of three smaller companies, Splish authorized the issuance of an additional 159,600 common shares. The acquisitions took place as shown below. Date of Acquisition Shares Issued Company A April 1, 2020 49,200 Company B July 1, 2020 79,200 Company C October 1, 2020 31,200 On May 14, 2020, Splish realized a $90,000 (before taxes) insurance gain on discontinued operations. On December 31, 2020, Splish recorded income of $312,000 from continuing operations (after tax).Assuming a 20% tax rate, compute the earnings per share data that should appear on the financial statements of Splish Industries as of December 31, 2020. (Round answer to 2 decimal places, e.g. $2.55.) Splish Industries Income…

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