Selected information from the separate and consolidated statements of financial position and statements of comprehensive income of P Company. and its subsidiary, S Company., as of December 31, 2019, and for the year then ended is as follows: P Company SCompany Consolidated Statement of financial position accounts Accounts receivable.. Inventory. Investment in S Co.. P 26,000 30.000 67.000 P19,000 P 42,000 25,000 50,000 Goodwill. Noncontrolling interest.. Stockholders' equity.. 30.000 10.000 154,000 50.000 154,000 Statement of comprehensive income acCounts Revenues. Cost of goods sold.. Gross profit. P200,000 150.000 50.000 P140,000 P300.000 110.000 30.000 225.000 75,000 Equity in eamings of S Co. Net income. P9.000 P36,000 P20.000 P36,000 Additional information During 2019, P Company sold goods to S Company at the same markup on cost that P Co uses for all sales. At December 31, 2019, S Co had not paid for all of these goods and still held 50% of them in inventory. P Company acquired its interest in S Company five years earlier (as of December 31, 2019)
Selected information from the separate and consolidated statements of financial position and statements of comprehensive income of P Company. and its subsidiary, S Company., as of December 31, 2019, and for the year then ended is as follows: P Company SCompany Consolidated Statement of financial position accounts Accounts receivable.. Inventory. Investment in S Co.. P 26,000 30.000 67.000 P19,000 P 42,000 25,000 50,000 Goodwill. Noncontrolling interest.. Stockholders' equity.. 30.000 10.000 154,000 50.000 154,000 Statement of comprehensive income acCounts Revenues. Cost of goods sold.. Gross profit. P200,000 150.000 50.000 P140,000 P300.000 110.000 30.000 225.000 75,000 Equity in eamings of S Co. Net income. P9.000 P36,000 P20.000 P36,000 Additional information During 2019, P Company sold goods to S Company at the same markup on cost that P Co uses for all sales. At December 31, 2019, S Co had not paid for all of these goods and still held 50% of them in inventory. P Company acquired its interest in S Company five years earlier (as of December 31, 2019)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2. Using the information provided in the image below, determine the carrying amount of the inventory that S Company purchased from P Company in the December 31, 2019 consolidated
Transcribed Image Text:Selected information from the separate and consolidated statements of financial position and statements of
comprehensive income of P Company. and its subsidiary, S Company., as of December 31, 2019, and for the
year then ended is as follows:
P Company
S Company
Consolidated
Statement of financial position accounts
Accounts receivable .
Inventory..
Investment in S Co..
Goodwil.
Noncontrolling interes..
Stockholders' equity.
P 26,000
30,000
P19.000
25,000
P 42,000
50,000
67,000
30,000
10,000
154,000
154,000
50,000
Statement of comprehensive income accounts
P200.000
150,000
50.000
Revenues.
P140,000
110,000
30,000
P300,000
Cost of goods sold.
Gross profit ..
225,000
75,000
Equity in eamings of S Co.
Net income.
P9.000
P36,000
P20,000
P36,000
Additional information
During 2019. P Company sold goods to S Company at the same markup on cost that P Co uses
for all sales. At December 31, 2019, S Co had not paid for all of these goods and still held 50% of
them in inventory.
P Company acquired its interest in S Company five years earlier (as of December 31, 2019)
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