8. On January 3, 2022, EphesiansCorporation acquired 75 percent ofDeuteronomy Company's voting ordinaryshare for P90,000 cash. At that date, thefair value of the non-controlling interestwas P30,000 (NCI is measured at fairvalue). Deuteronomy's balance sheet atthe date of acquisition contained thefollowing balances:Ordinary sharesOrdinary share premiumRetained earnings (deficit) (20,000)At the date of acquisition, the reportedbook values of Deuteronomy's assetsand liabilities approximated fair value.Elimination entries are being made toP100,00020,000prepare a consolidated balance sheetimmediately following the businesscombination.Based on the preceding information, inthe entry to eliminate the investmentbalance:

Goodwill= Consideration paid/% acquired-Fair value of assets

Answered: prepare a consolidated balance sheet…

prepare a consolidated balance sheet immediately following the business combination. Based on the preceding information, in the entry to eliminate the investment balance:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Prepare a single step income statement with respect to income from operations.

A: INCOME STATEMENTAn income statement is a financial report that depicts a company's income and…

Q: State the complexities in preparing consolidated financial reports that emerge from the passage of…

A: The complexity of passage of time arises due to consolidation is done subsequent to the acquisition

Q: Converting a balance sheet to a common size balance sheet

A: Common size financial statements: These are the financial statements in which all the items are…

Q: Presented below is the adjusted trial balance of Teal Mountain, Inc. at December 31, 2017. Debit…

A: Profit and loss account and other comprehensive income show the gross profit and net profit earned .…

Q: Identify the accounting concepts/policies adopted in the preparation of balance sheet of the…

A: Introduction Accounting concepts and policies are specific principles, conventions, rules and…

Q: Prepare a common size statement of profit and loss and balance sheet.

A: Common-size analysis shows the proportion of a total group or sub-group. An item of a particular…

Q: Using the consolidated income statement, identify two items that may result in adjusting entries for…

A: Adjusting entries are made in the financial statements for balancing the debit and credit side.…

Q: Prepare income statement and financial position from following: Show all workings

A: It will be recorded in following steps.

Q: How do you create a common size balance sheet with all assets as a percentage of total assets

A: Common size statement analysis, as the name suggests, first converts the financial statement as a…

Q: Unadjusted Trial Adjusted Trial Income Balance Sheet & Statement Balance Adjustments Balance…

A: In the above question we have given worksheet of a company with the help to this we have to…

Q: Classify the item where it goes Income statement , balance sheet

A: Introduction: Income statement: All revenues and expense items are shown in income statement. It…

Q: Sign Language Hearing Co Ltd Income Statement Sign Language Hearing Co Ltd Comparative Balance Sheet…

A: 1. Comparative Balance Sheet - In comparison of balance sheets of two different years included lots…

Q: Determine the consolidated balances which Peris would present on their consolidated balance sheet…

A: Parent company is that company which holds majority of shareholders in other company, which is known…

Q: C.requires equilibrium of resources and the claims on those resources

A: Answer: The accounting is equation is called the balance sheet equation. According to the accounting…

Q: Required: Prepare the consolidated balance sheet.

Q: Kakapoy Computer Enterprise Trial Balance December 31, 2018 Account Debit Credit Office Rent $4 $4…

A: Statement of financial position is the one that shows the financial health of the company.

Q: List and describe the various formats available for the preparation of an Income Statement.

A: Income statement: It is a financial statement that calculates the net income generated by a…

Q: Please help me answer this. The requirements are multi-step and single step income statements and…

A: Income statement and Balance sheet are two financial statements which are prepared to analyse…

Q: CLASS EXERCISE – recording of transactions (Balance Sheet Accounts) Mr. Zee started a Grocery store…

A: The balance sheet is the statement, also known as the statement of financial position is created on…

Q: Define what constitutes discontinued operations and describe the appropriate income statement…

A: Financial accounting is the branch of accounting that helps in summarizing, analyzing and recording…

Q: Balance sheet can be prepared in vertical, net asset and horizontal format. What is the difference…

A: Balance sheet refers to the financial statement of the business entity. It is divided into two…

Q: statement and retain earings statement please.

Q: Calculate the missing information based on the format of the income statement. Net Sales Cost of…

A: Net income: Net income is the revenue of the company after deducting all the expenses and taxes. It…

Q: Use the letters a to k from the balance sheet classifications provided below to indicate the usual…

A: The balance sheet is a report that summarizes all of an entity's assets, liabilities and equity as…

Q: Listed below are items that may appear on a balance sheet. Required:Match each item…

A: The term "balance sheet" type of financial statement that shows an organization's financial status…

Q: Prepare the statement of retained earnings for the year. (List items that increase retained earnings…

A: 1. Retained Earnings - Retained earnings is the accumulated profit earned by the company over a…

Q: The following are the typical classifications used in a balance sheet: a. Current assets b.…

A: The balance sheet represents the financial position of the business with assets and liabilities on a…

Q: Mr. Zee started a Grocery store on March 1, 2020. The following transactions occurred during the…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Parsons Repair Service Adjusted Trial Balance December 31, 2012 Accounts Cash Accounts receivable…

A: A financial statement indicates the statement representing the performance of the corporation in…

Q: Finish the Income Statement and Balance Sheet using the data provided, and calculate the final total

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: Information related to plant assets, natural resources, and intangible assets at the end of 2022 for…

A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…

Q: The financial data on the financial reports is built or generated on the base of A. Single entry…

A: Financial accounting is one of the important and useful branch of accounting. Under this, financial…

Q: Enhancing Qualities Fundamental Usefulness Qualities Relevance Consistency Understandability…

A: Accounting information is the information collected through the business transactions. After…

Q: How to convert a balance sheet to a common size balance sheet, including excel formulas

A: Prepare a common size balance sheet as shown below:

Q: Below are items that may appear on the balance sheet. Required:Match each item with…

A: Sno Item Classfication 1 Buildings Property, Plant and Equipment 2 Copyright Intangible Assets…

Q: Write short notes on the assumptions that need to be considered while preparing a financial…

A: The organization and operation of a business are defined by key accounting assumptions. They…

Q: Which of the following accounts belongs in the liability section of a balance sheet? Select an…

A: Among the options provided, "Accounts payable" belongs in the liability section of a balance sheet..

Q: Kakapoy Computer Enterprise began operations in 2017. A disorganized trial balance as of end of…

A: An income statement is a financial statement that shows you the company's income and expenditures.…

Q: nabled: Quiz 2 Saved a. Taxes Expense b. Cash c. Fuel Expense d. Prepaid Insurance e. Trucks f.…

A: a. / (income statement) b. B (balance sheet) c. / (income statement) d. B (balance sheet) e. B…

Q: Assume that Sheffield uses the straight-line method. Show how the truck would be reported in the…

A: The balance sheet shows the financial position of the business.

Q: Present the information in a multistep income statement

A: Income statement: It is a financial statement prepared by a company that reports revenues and…

Q: Particulars Debit (RM) Credit (RM) Sales 265,900 Purchases 154,870 Rent 4,200 Lighting and heating…

A: The financial statements are prepared at the end of the accounting period. It includes an income…

Q: Determine the consolidated balances which Peris would present on their consolidated balance sheet…

A: Consolidated financial statements are those financial statements which are the combination of two…

Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

8. On January 3, 2022, Ephesians
Corporation acquired 75 percent of
Deuteronomy Company's voting ordinary
share for P90,000 cash. At that date, the
fair value of the non-controlling interest
was P30,000 (NCI is measured at fair
value). Deuteronomy's balance sheet at
the date of acquisition contained the
following balances:
Ordinary shares
Ordinary share premium
Retained earnings (deficit) (20,000)
At the date of acquisition, the reported
book values of Deuteronomy's assets
and liabilities approximated fair value.
Elimination entries are being made to
P100,000
20,000
prepare a consolidated balance sheet
immediately following the business
combination.
Based on the preceding information, in
the entry to eliminate the investment
balance:

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 Goodwill should be record as per fair value method

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Question: Describe the following scales and identify which scales are applied in accounting nominal, interval, ordinal, ratio
How to conver a balance sheet to a common size balance sheet
Required information [The following information applies to the questions displayed below.] The following data were provided by Mystery Incorporated for the year ended December 31: Cost of Goods Sold $169,000 18,940 248,000 Income Tax Expense Merchandise Sales (gross revenue) for Cash Merchandise Sales (gross revenue) on Credit Office Expenses 43,600 19,400 7,290 41,800 Sales Returns and Allowances Salaries and Wages Expense
Prepare a properly formatted multi step income statement that would be used for external reporting purposes
The retained earnings statement should be prepared a.after the income statement and before the balance sheet b.after the income statement and balance sheet c.before the income statement and after the balance sheet d.before the income statement and balance sheet
What accounting concepts are used in the balance sheet (mainly on assets) based on the data provided below?
Create the financial statement ( Income statement and Balance sheet ) for NetSolutions using the Summary transaction.
The following classification scheme typically is used in the preparation of a balance sheet: a. Current assets b. Investments c. Property, plant, and equipment d. Intangible assets e. Other assets f. Current liabilities g. Long-term liabilities h. Contributed capital i. Retained earnings Required: Using the letters above and the format below, indicate the balance sheet category from the dropdown listing in which an entity typically would place each of the following items. Contra accounts should be indicated by the corresponding dropdown choice shown with parentheses. (If an Item relates to more than one balance sheet category, select the dropdown option that represents all applicable categories.) 1. Long-term receivables 2. Accumulated amortization 3. Current maturities of long-term debt 4. Notes payable (short-term) 5. Accrued payroll taxes 6. Leasehold improvements 7. 8. Machinery 9. Common stock 10. Short-term investments 11. Deferred tax liability Retained earnings appropriated for…
eflects each situation. Principle or Assumption eports can be prepared for those Business entity assumption Expense recognition (matching) principle S. s reported. Going-concern assumption npact users' decisions. Measurement (cost) principle Monetary unit assumption
Describe the process of preparing an income statement and a balance sheet, including the specific elements and formulas used in each statement.
use the information to make a common size balance sheet
prepare a common - size Consolidated Statements of Operations ( balance sheet)