Phlaire acquired 70 percent of Syanne on July 1, 20x5. Based on the purchase price, proportionate goodwill of P450,000 was recognized. The 20x6 financial statements are as follows: Phlaire Syanne Income Statement P 1,200,000 (802,500) (150,000) 52,500 300.000 P 150.000 Sales 900,000 (600,000) (150,000) Cost of Goods Sold Operating Expenses Dividend Income -0- Net Income Statement of Accumulated Profits P 1,275,000 Accumulated Profits, January 1, 2016 Net Income P1,950,000 300,000 150,000 75,000) P2,100.000 P 1,350,000 Dividends Paid (150,000) Accumulated Profits, December 31, 2016 Statement of Financial Position TIA P 450,000 1,050,000 Cash and Receivables 600,000 Inventory Investment in Syanne 447,000 1,353,000 1,500,000 -0- Fixed Assets 900,000 Accumulated Depreciation Total Assets (450,000) P3.450,000 P 2,100.000 (300,000) AGUIO CIT P 600,000 150,000 P 900,000 450,000 2,100 000 P 3.450,000 P 2.100,000 Liabilities Ordinary share Accumulated profits Total Liabilities and Equity 1,350,000 Phlaire sells inventory costing P108,000 to Syanne during 20x5 for P180,000. At year's end, 30 percent is left. Syanne sells inventory costing P300,000 to Phlaire during 201x for P375,000. At year's end, 20 percent is left.

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Chapter1: Financial Statements And Business Decisions
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Determine the consolidated balances of the inventory account in the year 20x6.

Phlaire acquired 70 percent of Syanne on July 1, 20x5. Based on the purchase price, proportionate goodwill of P450,000 was
recognized. The 20x6 financial statements are as follows:
Phlaire
Syanne
Income Statement
P 1,200,000
(802,500)
(150,000)
52,500
300.000 P 150.000
Sales
900,000
(600,000)
(150,000)
Cost of Goods Sold
Operating Expenses
Dividend Income
-0-
Net Income
Statement of Accumulated Profits
P 1,275,000
Accumulated Profits, January 1, 2016
Net Income
P1,950,000
300,000
150,000
75,000)
P2,100.000 P 1,350,000
Dividends Paid
(150,000)
Accumulated Profits, December 31, 2016
Statement of Financial Position
TIA
P 450,000
1,050,000
Cash and Receivables
600,000
Inventory
Investment in Syanne
447,000
1,353,000
1,500,000
-0-
Fixed Assets
900,000
Accumulated Depreciation
Total Assets
(450,000)
P3.450,000 P 2,100.000
(300,000)
AGUIO CIT
P 600,000
150,000
P 900,000
450,000
2,100 000
P 3.450,000 P 2.100,000
Liabilities
Ordinary share
Accumulated profits
Total Liabilities and Equity
1,350,000
Phlaire sells inventory costing P108,000 to Syanne during 20x5 for P180,000. At year's end, 30 percent is left. Syanne sells
inventory costing P300,000 to Phlaire during 201x for P375,000. At year's end, 20 percent is left.
Transcribed Image Text:Phlaire acquired 70 percent of Syanne on July 1, 20x5. Based on the purchase price, proportionate goodwill of P450,000 was recognized. The 20x6 financial statements are as follows: Phlaire Syanne Income Statement P 1,200,000 (802,500) (150,000) 52,500 300.000 P 150.000 Sales 900,000 (600,000) (150,000) Cost of Goods Sold Operating Expenses Dividend Income -0- Net Income Statement of Accumulated Profits P 1,275,000 Accumulated Profits, January 1, 2016 Net Income P1,950,000 300,000 150,000 75,000) P2,100.000 P 1,350,000 Dividends Paid (150,000) Accumulated Profits, December 31, 2016 Statement of Financial Position TIA P 450,000 1,050,000 Cash and Receivables 600,000 Inventory Investment in Syanne 447,000 1,353,000 1,500,000 -0- Fixed Assets 900,000 Accumulated Depreciation Total Assets (450,000) P3.450,000 P 2,100.000 (300,000) AGUIO CIT P 600,000 150,000 P 900,000 450,000 2,100 000 P 3.450,000 P 2.100,000 Liabilities Ordinary share Accumulated profits Total Liabilities and Equity 1,350,000 Phlaire sells inventory costing P108,000 to Syanne during 20x5 for P180,000. At year's end, 30 percent is left. Syanne sells inventory costing P300,000 to Phlaire during 201x for P375,000. At year's end, 20 percent is left.
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