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 Sales 1,200,000 P 900,000 Cost of Goods Sold (802,500) (600,000) (150,000) 52,500 300,000 Operating Expenses (150,000) Dividend Income Net Income P 150,000 Statement of Accumulated Profits Accumulated Profits, January 1, 2016 1,950,000 1,275,000 Net Income 300,000 150,000 Dividends Paid (150,000) ( 75,000) Accumulated Profits, December 31, 2016 2,100,000 1,350,000 Statement of Financial Position Cash and Receivables 600,000 P 450,000 Inventory 447,000 1,050,000 Investment in Syanne 1,353,000 Fixed Assets 1,500,000 900,000 Accumulated Depreciation (450,000) 3,450,000 (300,000) Total Assets P 2,100,000 Liabilities 900,000 600,000 Ordinary share 450,000 150,000 Accumulated profits Total Liabilities and Equity 2,100 000 1,350,000 3,450,000 P 2,100,000 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.

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 Sales 1,200,000 P 900,000 Cost of Goods Sold (802,500) (600,000) (150,000) 52,500 300,000 Operating Expenses (150,000) Dividend Income Net Income P 150,000 Statement of Accumulated Profits Accumulated Profits, January 1, 2016 1,950,000 1,275,000 Net Income 300,000 150,000 Dividends Paid (150,000) ( 75,000) Accumulated Profits, December 31, 2016 2,100,000 1,350,000 Statement of Financial Position Cash and Receivables 600,000 P 450,000 Inventory 447,000 1,050,000 Investment in Syanne 1,353,000 Fixed Assets 1,500,000 900,000 Accumulated Depreciation (450,000) 3,450,000 (300,000) Total Assets P 2,100,000 Liabilities 900,000 600,000 Ordinary share 450,000 150,000 Accumulated profits Total Liabilities and Equity 2,100 000 1,350,000 3,450,000 P 2,100,000 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.

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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