Prepare the set of consolidated financial statements at the end of the year. Popoy Corporation (PC) purchased all the common shares of Sia Company (SC) on January 1, 20X1, forP180,000 cash. The fair value and carrying amounts of SC's net identifiable assets are equal. The trial balancesfor both companies on December 31, 20x1 are as follows:Sia CompanyDebitPopoy CorporationDebitCreditCreditCashAccounts ReceivableInventoryDepreciable Assets, netInvestment in Samantha CompanyOperating ExpensesCost of Goods Sold15,0005,00030,00070,00060,000225,00070,000325,000180,00025,00015,000105,00075,000Dividends DeclaredAccounts PayableNotes PayableCommon Stock40,00010,50050,00099,500200,000230,000200,00010,50040,500120,000100,000Retained EarningsSales80,000120,000Dividend Income790,000790,000460,500 460,500

Given Information: Consolidated financial statements of Popoy corporation and Sia company.

Popoy Corporation (PC) purchased all the common shares of Sia Company (SC) on January 1, P180,000 cash. The fair value and carrying amounts of SC's net identifiable assets are equal. The trial balances for both companies on December 31, 20X1 are as follows: 1, for Popoy Corporation Credit Sia Company Debit Credit Debit Cash 15,000 5,000 70,000 60,000 Accounts Receivable 30,000 70,000 Inventory Depreciable Assets, net Investment in Samantha Company Operating Expenses Cost of Goods Sold 325,000 180,000 25,000 105,000 40,000 225,000 15,000 75,000 10,500 Dividends Declared Accounts Payable Notes Payable 50,000 99,500 40,500 120,000 Common Stock 200,000 100,000 Retained Earnings Sales 230,000 200,000 10,500 790.000 80,000 120,000 Dividend Income 790.000 460,500 460,500

Popoy Corporation (PC) purchased all the common shares of Sia Company (SC) on January 1, P180,000 cash. The fair value and carrying amounts of SC's net identifiable assets are equal. The trial balances for both companies on December 31, 20X1 are as follows: 1, for Popoy Corporation Credit Sia Company Debit Credit Debit Cash 15,000 5,000 70,000 60,000 Accounts Receivable 30,000 70,000 Inventory Depreciable Assets, net Investment in Samantha Company Operating Expenses Cost of Goods Sold 325,000 180,000 25,000 105,000 40,000 225,000 15,000 75,000 10,500 Dividends Declared Accounts Payable Notes Payable 50,000 99,500 40,500 120,000 Common Stock 200,000 100,000 Retained Earnings Sales 230,000 200,000 10,500 790.000 80,000 120,000 Dividend Income 790.000 460,500 460,500

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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