Requirements: WHAT IS THE AMOUNT OF: A. Goodwill to be reported on the consolidated balance sheet on January 1, 2x19? B. Non-controlling interest on January 1, 2x19? C. Consolidated operating expenses for 2x19? D. Consolidated profit attributable to parent on December 31, 2x19? E. Non-controlling interest in profit of Subsidiary Company on December 31, 2x19? F. Non-controlling interest is to be presented in the consolidated statement of financial position on December 31, 2x19? G. Consolidated retained earnings attributable to Parent's shareholder equity on December 31, 2x19? H. Total consolidated assets on December 31, 2x19?
Requirements: WHAT IS THE AMOUNT OF: A. Goodwill to be reported on the consolidated balance sheet on January 1, 2x19? B. Non-controlling interest on January 1, 2x19? C. Consolidated operating expenses for 2x19? D. Consolidated profit attributable to parent on December 31, 2x19? E. Non-controlling interest in profit of Subsidiary Company on December 31, 2x19? F. Non-controlling interest is to be presented in the consolidated statement of financial position on December 31, 2x19? G. Consolidated retained earnings attributable to Parent's shareholder equity on December 31, 2x19? H. Total consolidated assets on December 31, 2x19?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Requirements: WHAT IS THE AMOUNT OF:
A.
B. Non-controlling interest on January 1, 2x19?
C. Consolidated operating expenses for 2x19?
D. Consolidated profit attributable to parent on December 31, 2x19?
E. Non-controlling interest in profit of Subsidiary Company on December 31, 2x19?
F. Non-controlling interest is to be presented in the consolidated
G. Consolidated
H. Total consolidated assets on December 31, 2x19?
Transcribed Image Text:On January 5, 20x9, Parent Company acquired 80% of the outstanding shares of Subsidiary Company for P350,000.
The financial statements of Parent and Subsidiary Company before the acquisition follow:
Parent
Subsidiary
Parent
Company Company
700,000
300,000
1,000,000
500,000
Value
Cash
Inventory
100,000 100,000
50,000
55,000
350,000 365,000
200,000 200,000
200,000
100,000
PPE
Liabilities
Outstanding Shares
Retained earnings
1,000,000
500,000
Financial statements for Parent and Subsidiary for the year ended December 31, 2x19 follow:
INCOME AND RETAINED EARNINGS
Parent
Subsidiary
Company Company
800,000
40,000
(480,000)
(60,000)
300,000
500,000
(100,000)
700,000
Sales
550,000
Dividend income
Cost of sales
Operating expenses
Net income
Retained earnings, Jan 1, 2019
Dividends declared
(250,000)
(150,000)
150,000
100,000
(50,000)
200,000
Retained earnings end
BALANCE SHEET
Cash
300,000
100,000
650,000
350,000
900,000
2,300,000
Receivables
Inventory
Investment in Subsidiary
125,000
30,000
45,000
PPE
350,000
Total
550,000
Liabilities
600,000
1,000,000
700,000
2,300,000
150,000
200,000
Outstanding shares
Retained eanings
200,000
550,000
Total
Additional Information:
1.
The undervalued PPE of Subsidiary on the date of acquisition has a remaining useful life of 5-years.
Subsidiary Company owes Parent Company P5,000 on December 31, 2x19.
2.
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