After the combination, what is the total stockholders’ equity of Parent Corporation? The stockholder's equities of Parent Corporation and Subsidiary Corporation at July 1, 2020 were as follows:ParentSubsidiaryCapital Stock, P100 parAdditional paid in capitalRetained Earnings1,500,000800,000200,000400,000600,000300,000On July 2, 2020, Parent issued 15,000 of its shares with a market value of P120 per share for the assets andliabilities of Subsidiary, and Subsidiary was dissolved. On the same day, Parent paid P5,000 for indirect costand P10,000 for SEC registration of equity securities.

Solution Given Parent Subsidiary Capital stock 1500000 800000 Additional paid…

The stockholder's equities of Parent Corporation and Subsidiary Corporation at July 1, 2020 were as follows: Capital Stock, P100 par Additional paid in capital Retained Earnings Parent 1,500,000 200,000 600,000 Subsidiary 800,000 400,000 300,000 On July 2, 2020, Parent issued 15,000 of its shares with a market value of P120 per share for the assets and liabilities of Subsidiary, and Subsidiary was dissolved. On the same day, Parent paid P5,000 for indirect cost and P10,000 for SEC registration of equity securities.

The stockholder's equities of Parent Corporation and Subsidiary Corporation at July 1, 2020 were as follows: Capital Stock, P100 par Additional paid in capital Retained Earnings Parent 1,500,000 200,000 600,000 Subsidiary 800,000 400,000 300,000 On July 2, 2020, Parent issued 15,000 of its shares with a market value of P120 per share for the assets and liabilities of Subsidiary, and Subsidiary was dissolved. On the same day, Parent paid P5,000 for indirect cost and P10,000 for SEC registration of equity securities.

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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