Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation. To Calculate : Number of shares that were issued, assuming that P Company’s common stock market value of $ 25 per share at the time of exchange.

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Answer 1

Question

Chapter 1, Problem 1.20E

a.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: Number of shares that were issued, assuming that P Company’s common stock market value of $25 per share at the time of exchange.

b.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: The par value per share of P Company’s common stock.

c.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: Amount of goodwill which P company’s record at the time of business combination.

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Problem No. 1 On January 1, 2025, Manuel Cruz and Sherimae Diasalo agreed to form a partnership that will manufacture and sell biscuits. The partnership agreement specified that Cruz is to invest cash of P1,000,000 and Diasalo is to contribute land and building to serve as the office and factory of the business. The following amounts are applicable to the property of Diasalo: Acquisition Cost Fair Market Value Land Building P1,000,000 500,000 P1,500,000 850,000 During the formation, it was found out that Cruz has accounts receivable amounting to P70,000 and the partners agreed that it will be assumed by the partnership. The name of the partnership will be Fita Pan. Required: 1. Prepare journal entry to record: a. The investment of Cruz to the partnership b. The investment of Diasalo to the partnershipood relay ni 000,219 2. Prepare the statement of financial position of the partnership as of January 1, 2025 Problem No. 2 The trial balance of Cleint Lumanao Nacho Supplies on February…

Answer 2

Question

Chapter 1, Problem 1.20E

a.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: Number of shares that were issued, assuming that P Company’s common stock market value of $25 per share at the time of exchange.

b.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: The par value per share of P Company’s common stock.

c.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: Amount of goodwill which P company’s record at the time of business combination.

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Answer 3

Question

Chapter 1, Problem 1.20E

a.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: Number of shares that were issued, assuming that P Company’s common stock market value of $25 per share at the time of exchange.

b.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: The par value per share of P Company’s common stock.

c.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: Amount of goodwill which P company’s record at the time of business combination.

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Answer 4

Question

Chapter 1, Problem 1.20E

a.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: Number of shares that were issued, assuming that P Company’s common stock market value of $25 per share at the time of exchange.

b.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: The par value per share of P Company’s common stock.

c.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: Amount of goodwill which P company’s record at the time of business combination.

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Answer 5

Chapter 1, Problem 1.20E

a.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: Number of shares that were issued, assuming that P Company’s common stock market value of $25 per share at the time of exchange.

b.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: The par value per share of P Company’s common stock.

c.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: Amount of goodwill which P company’s record at the time of business combination.

Answer 6

Chapter 1, Problem 1.20E

a.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: Number of shares that were issued, assuming that P Company’s common stock market value of $25 per share at the time of exchange.

Answer 7

Chapter 1, Problem 1.20E

a.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: Number of shares that were issued, assuming that P Company’s common stock market value of $25 per share at the time of exchange.

Answer 8

b.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: The par value per share of P Company’s common stock.

Answer 9

b.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: The par value per share of P Company’s common stock.

Answer 10

c.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: Amount of goodwill which P company’s record at the time of business combination.

Answer 11

c.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: Amount of goodwill which P company’s record at the time of business combination.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 1 - What types of circumstances would encourage...Ch. 1 - How would the decision to dispose of a segment of...Ch. 1 - Prob. 1.3Q Ch. 1 - Prob. 1.4Q Ch. 1 - Prob. 1.5Q Ch. 1 - Prob. 1.6Q Ch. 1 - Prob. 1.7Q Ch. 1 - Prob. 1.8Q Ch. 1 - Prob. 1.9Q Ch. 1 - Prob. 1.10Q

Solution Summary: The author explains the process of accounting where books of the parent company and the subsidiary company are reported in consolidated/combined form.

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Chapter 1 Solutions