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Required: (a) Calculate consolidated profit attributable to Pic's shareholders for Year 6. (Omit $ sign in your response.) Consolidated profit attributable to Pic's shareholders $ (b) Calculate the following account balances for the consolidated statement of financial position at December 31, Year 6: (Omit $ sign in your response.) (i) Customer contracts (ii) Non-controlling interest (iii) Retained earnings ԵԴ ԵԴ ԵԴ

Required: (a) Calculate consolidated profit attributable to Pic's shareholders for Year 6. (Omit $ sign in your response.) Consolidated profit attributable to Pic's shareholders $ (b) Calculate the following account balances for the consolidated statement of financial position at December 31, Year 6: (Omit $ sign in your response.) (i) Customer contracts (ii) Non-controlling interest (iii) Retained earnings ԵԴ ԵԴ ԵԴ

FINANCIAL ACCOUNTING
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, Year 5, Pic Company acquired 7,500 ordinary shares of Sic Company for $600,000. On January 1, Year 6, Pic Company acquired an additional 2,000 ordinary shares of Sic Company for $210,000. On January 1, Year 5, the shareholders' equity of Sic was as follows: Ordinary shares (10,000 no par value shares issued) Retained earnings $200,000 354,000 $554,000 The following are the statements of retained earnings for the two companies for Years 5 and 6: Pic Year 5 Sic Year 6 $ 655,000 151,500 (120,000) Year 5 $ 354,000 105,000 (90,000) Year 6 $ 369,000 118,000 (90,000) $ 655,000 $ 686,500 $ 369,000 $ 397,000 Retained earnings, beginning of year Profit Dividends Retained earnings, end of year $ 608,000 147,000 (100,000) Additional Information • Pic uses the cost method to account for its investment in Sic. • Any acquisition differential is allocated to customer contracts, which are expected to provide future benefits until December 31, Year 7. Neither company has any customer contracts recorded on their separate-entity records. • There were no unrealized profits from intercompany transactions since the date of acquisition. Required: (a) Calculate consolidated profit attributable to Pic's shareholders for Year 6. (Omit $ sign in your response.) Consolidated profit attributable to Pic's shareholders $ (b) Calculate the following account balances for the consolidated statement of financial position at December 31, Year 6: (Omit $ sign in your response.) (i) Customer contracts (ii) Non-controlling interest (iii) Retained earnings $ $
Transcribed Image Text:On January 1, Year 5, Pic Company acquired 7,500 ordinary shares of Sic Company for $600,000. On January 1, Year 6, Pic Company acquired an additional 2,000 ordinary shares of Sic Company for $210,000. On January 1, Year 5, the shareholders' equity of Sic was as follows: Ordinary shares (10,000 no par value shares issued) Retained earnings $200,000 354,000 $554,000 The following are the statements of retained earnings for the two companies for Years 5 and 6: Pic Year 5 Sic Year 6 $ 655,000 151,500 (120,000) Year 5 $ 354,000 105,000 (90,000) Year 6 $ 369,000 118,000 (90,000) $ 655,000 $ 686,500 $ 369,000 $ 397,000 Retained earnings, beginning of year Profit Dividends Retained earnings, end of year $ 608,000 147,000 (100,000) Additional Information • Pic uses the cost method to account for its investment in Sic. • Any acquisition differential is allocated to customer contracts, which are expected to provide future benefits until December 31, Year 7. Neither company has any customer contracts recorded on their separate-entity records. • There were no unrealized profits from intercompany transactions since the date of acquisition. Required: (a) Calculate consolidated profit attributable to Pic's shareholders for Year 6. (Omit $ sign in your response.) Consolidated profit attributable to Pic's shareholders $ (b) Calculate the following account balances for the consolidated statement of financial position at December 31, Year 6: (Omit $ sign in your response.) (i) Customer contracts (ii) Non-controlling interest (iii) Retained earnings $ $
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