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Requirements: a. Compute for the gain (loss) on extinguishment of bonds t recognized in the 20x1 consolidated statement of profit or b. Compute for the consolidated total bonds payable. c. Prepare a draft of the 20x1 consolidated statement of fina position and statement of profit or loss.

Requirements: a. Compute for the gain (loss) on extinguishment of bonds t recognized in the 20x1 consolidated statement of profit or b. Compute for the consolidated total bonds payable. c. Prepare a draft of the 20x1 consolidated statement of fina position and statement of profit or loss.

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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Intercompany Bond Transactions:

Chapter 234 Bonds payable (at face amount). Total liabilities 300,000 340,000 200,000 Share capital Retained earnings Total equity TOTAL LIABILITIES AND EQUITY 140,000 340,000 680,000 30,0 10000 17019) 270,0 300,000 Sing Co. 300,000 Dance C 120,00 (100,00 (217,000) (3,000) 80,000 Revenues Operating expenses Interest expense Profit for the year 20,00 Requirements: a. Compute for the gain (loss) on extinguishment of bonds t recognized in the 20x1 consolidated statement of profit or b. Compute for the consolidated total bonds payable. c. Prepare a draft of the 20x1 consolidated statement of fina position and statement of profit or loss.
Transcribed Image Text:Chapter 234 Bonds payable (at face amount). Total liabilities 300,000 340,000 200,000 Share capital Retained earnings Total equity TOTAL LIABILITIES AND EQUITY 140,000 340,000 680,000 30,0 10000 17019) 270,0 300,000 Sing Co. 300,000 Dance C 120,00 (100,00 (217,000) (3,000) 80,000 Revenues Operating expenses Interest expense Profit for the year 20,00 Requirements: a. Compute for the gain (loss) on extinguishment of bonds t recognized in the 20x1 consolidated statement of profit or b. Compute for the consolidated total bonds payable. c. Prepare a draft of the 20x1 consolidated statement of fina position and statement of profit or loss.
b. outstanding bonds of Sing Co. from the open market for P250,000. On December 31, 20x1, Dance, Inc. purchased all of the There were no other intercompany transactions during the year. 4. On January 1, 20x1, Sing Co. acquired 75% interest in Dance I The year-end individual financial statements show the following carrying amount of P200,000, equal to fair value, Non- controlling interest was measured using the proportionate Co. On this date, Sing Co.'s net identifiable assets have a altributable to the owners of the parent and attributable to Consolidated profit for the year broken down into amounts non-controlling interests. share method, information: wa Sing Co. Dance Co. ASSETS Investment in subsidiary (at cost) 180,000 250,000 50,000 300,000 Investment in bonds Other assets TOTAL ASSETS 00 00 500,000 680,000 LIABILITIES AND EQUITY 00 Accounts payable 40,000 30,000
Transcribed Image Text:b. outstanding bonds of Sing Co. from the open market for P250,000. On December 31, 20x1, Dance, Inc. purchased all of the There were no other intercompany transactions during the year. 4. On January 1, 20x1, Sing Co. acquired 75% interest in Dance I The year-end individual financial statements show the following carrying amount of P200,000, equal to fair value, Non- controlling interest was measured using the proportionate Co. On this date, Sing Co.'s net identifiable assets have a altributable to the owners of the parent and attributable to Consolidated profit for the year broken down into amounts non-controlling interests. share method, information: wa Sing Co. Dance Co. ASSETS Investment in subsidiary (at cost) 180,000 250,000 50,000 300,000 Investment in bonds Other assets TOTAL ASSETS 00 00 500,000 680,000 LIABILITIES AND EQUITY 00 Accounts payable 40,000 30,000
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