Set out below are the draft income statements of P andits subsidiary S for the year ended 31 December 20X7.On the 1 January 20X6 P purchased 75% of theordinary shares in S.RevenueCost of sales and expensesGross profitOperating expensesProfit from operationsFinance costsProfit before taxationTaxProfit for the yearP$000300(180)120(47)7373(25)48"8ª6 | 8 | 8 | 5ª | 86 | ªS$000150(70)80(23)5755(16)39During the year S sold goods to P for $20,000, makinga mark up of one third. Only 20% of these goods weresold before the end of the year, the rest were still ininventory.P values non-controlling interest using the fair valuemethod.Prepare the consolidated income statement for theyear ended 31 December 20X7

As per question S is a subsidiary Company of P. Hence the transaction betwee both Company will…

Answered: set out below are the draft income…

set out below are the draft income statements of Panc ts subsidiary S for the year ended 31 December 20X7. On the 1 January 20X6 P purchased 75% of the

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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based on the information in the picture, In the consolidated statement of comprehensive income for the year ended December 31, 2021, how much is the consolidated net income attributable to the controlling interest? a. 1,980,000 b. 1,860,000 c. 1,830,000 d. 1,760,000
Determine the consolidated balances of SALES in the year 20x6.
On January 2, 20x6, TOTAL Company acquired 90% of the outstanding shares of POWER Company at book value. During 20x6 and 20x7, intercompany sales amounted to P2,000,000 and P4.000.000; respectively. POWER Company consistently recognized a 25% mark-up based on sales while TOTAL Company had a 25% gross profit on cost. The inventories of the buying affiliate, which all came from inter-companv transactions show: 12/31/x6 12/31/x7 240,000 160,000. TOTAL POWER 100,000 40,000 On October 1, 20x6, TOTAL Company purchased a piece of land costing P1.000,000 from POWER Company for P1,500,000. On December 31, 20x7, TOTAL sold this land to an unrelated party for P1,500,000. On the other hand, on July 1, 2017, TOTAL Company sold a used machine with a carryıng vaiue of P60,000 and remaining life of 3 years to POWER Company for P42 000. Separate Statement of Comprehensive Income for the two companies for 20x7 follow: POWER ТОTAL COMPANY COMPANY Sales 25,000,000 14,040,000 Cost of sales 15,000,000…
Calendar Company purchases 80 percent of Daily Planner. At the date of acquisition, Daily Planner has revenue of P250,000 and expenses of P170,000. What amount of pre-acquisition earnings will be created on the consolidated income statement at the acquisition date?
On December 31, 20X1, Par Inc reported total assets of $860,203, while Sub Corp reported total assets of $171,991. The fair values of Sub's assets and liabilities on the same date were $214421 and $49,313 respectively. On the morning of January 1, 20x2, Par agreed to acquire 100% of Sub for a total value of 86.25% of Sub for a total value of $286,678 by paying cash. On the consolidated balance sheet immediately after the acquisition, what should be the total assets reported by the combined entity under the fair-value-enterprise (FVE) method? a. $955,218 b. $979,099 Oc. $1,002,979 Od. $1,026.860 O e. $931,338 On January 1, 20X1, Par inc acquires 79.05% of Sub Corp for $153,469 in cash. Immediately before the acquisition, the book value of Sub's identifiable net assets was $104,016 with a fair value of $116,806, while the book value of Par's net assets was $204.623. What will be the amount of total shareholders' equity on the consolidated balance sheet immediately after the acquisition…
Mokwena Limited acquired 48% investment in Masibi Limited at R100 000. At the date of acquisition, which is 31 March2016, Masibi Limited’s statement of financial position showed the following balances:Non-current assets R692 000Current assets R44 000Non-current liabilities R268 000Current liabilities R218 000Mokwena Limited applies equity accounting for all its investments in associates and joint ventures. The financial year-endfor Mokwena Limited is on 31 March of each year.What amount will be recorded as investment in associate in Mokwena Limited’s statement of financial position as at 31March 2016?
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For the year ended December 31, the following results were given: Dividend Paid Net Income Parent Company P15,000 P30,200Subsidiary Company 4,000 9,400 Using the proportionate basis or partial goodwill method, compute the non-controlling interest on December 31.A. P 0 C. P 610B. P 540 D. P 940 Note: Just use the information provided to arrive at the answer.