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The following balances were taken from the trial balance of CARDO Company and SYANO Company at the start of the fiscal year 20x7: CARDO COMPANY Book Value Fair Value Book Value Fair Value Cash Accounts Payable P500,000 250,000 155,000 600,000 P500,000 240,000 Mortgage Payable 200,000 Ordinary Shares 520,000 Retained Earnings P450,000 200,000 P440,000 Accounts Receivable 220,000 Inventory Fixed Assets (Net) 595,000 260,000 SYANO COMPANY Book Value Fair Value Book Value Fair Value Accounts Payable P350,000 200,000 250,000 175,000 Cash P300,000 150,000 125,000 400,000 P300,000 160,000 Mortgage Payable 100,000 Ordinary Shares 420,000 Retained Earnings P340,000 220,000 Accounts Receivable Inventory Fixed Assets (Net)

The following balances were taken from the trial balance of CARDO Company and SYANO Company at the start of the fiscal year 20x7: CARDO COMPANY Book Value Fair Value Book Value Fair Value Cash Accounts Payable P500,000 250,000 155,000 600,000 P500,000 240,000 Mortgage Payable 200,000 Ordinary Shares 520,000 Retained Earnings P450,000 200,000 P440,000 Accounts Receivable 220,000 Inventory Fixed Assets (Net) 595,000 260,000 SYANO COMPANY Book Value Fair Value Book Value Fair Value Accounts Payable P350,000 200,000 250,000 175,000 Cash P300,000 150,000 125,000 400,000 P300,000 160,000 Mortgage Payable 100,000 Ordinary Shares 420,000 Retained Earnings P340,000 220,000 Accounts Receivable Inventory Fixed Assets (Net)

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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From the data given, compute the goodwill or gain from bargain purchase for the different items.

If CARDO Co purchases the net assets of SYANO Co by issuing 5,000 shares of their P10 par value shares with a fair value of P20 per share, entered into a mortgage loan of P290,000 and paying direct cost and stock issue cost of P50,000 and P20,000 respectively, a P25,000 direct cost and a P50,000 indirect cost however remain unpaid.

Compute for the consolidated total liabilities at the date of acquisition.

The following balances were taken from the trial balance of CARDO Company and SYANO Company at the start of the fiscal year 20x7: CARDO COMPANY Book Value Fair Value Book Value Fair Value Cash Accounts Receivable Accounts Payable P450,000 200,000 P500,000 250,000 155,000 600,000 P500,000 240,000 Mortgage Payable 200,000 Ordinary Shares 520,000 Retained Earnings P440,000 220,000 LO 595,000 260,000 Inventory Fixed Assets (Net) SYANO COMPANY Book Value Fair Value Book Value Fair Value Accounts Payable P350,000 200,000 250,000 175,000 P340,000 220,000 Cash P300,000 150,000 125,000 400,000 P300,000 160,000 Mortgage Payable 100,000 Ordinary Shares 420,000 Retained Earnings Accounts Receivable Inventory Fixed Assets (Net) RS
Transcribed Image Text:The following balances were taken from the trial balance of CARDO Company and SYANO Company at the start of the fiscal year 20x7: CARDO COMPANY Book Value Fair Value Book Value Fair Value Cash Accounts Receivable Accounts Payable P450,000 200,000 P500,000 250,000 155,000 600,000 P500,000 240,000 Mortgage Payable 200,000 Ordinary Shares 520,000 Retained Earnings P440,000 220,000 LO 595,000 260,000 Inventory Fixed Assets (Net) SYANO COMPANY Book Value Fair Value Book Value Fair Value Accounts Payable P350,000 200,000 250,000 175,000 P340,000 220,000 Cash P300,000 150,000 125,000 400,000 P300,000 160,000 Mortgage Payable 100,000 Ordinary Shares 420,000 Retained Earnings Accounts Receivable Inventory Fixed Assets (Net) RS
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