EBK ADVANCED FINANCIAL ACCOUNTING
12th Edition
ISBN: 9781260165104
Author: Christensen
Publisher: YUZU
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Chapter 3, Problem 3.21P
To determine
Introduction:Consolidated financial statements are the financial statements maintained by entity with multiple subsidiary and division.The minority interest is that portion of stock which the parent company does not hold in the subsidiary company and does not hold any controlling interest
To Prepare:The Consolidated
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On June 1, 20x10, HEAD and ACHE decided to form a partnership contributing their
existing businesses. The following is taken form their trial balance:
HEAD
ACHE
Cash
150,000
250,000
100,000
Receivables (net)
80,000
Inventory
125,000
150,000
500,000
400,000
Fixed Assets (net)
Liabilities
250,000
250,000
The partners agreed on the following:
1.
P50,000 of HEAD'S cash represents converted foreign currencies amounting to
FC1, 000 on December 31, 20x9. The current spot rate of FC1 is equivalent to
P53.
2.
The receivables of HEAD and ACHE, currently have a net realizable value of
80% it is agreed that their net realizable value must be adjusted to 75%.
HEAD's inventory has a NRV of P140,000 and could be currently sold for
P200,000.
3.
life. It's estimated
HEAD's machine was purchased last year with a 5-year
current value is 90% of its cost.
5.
ACHE's fixed asset has an 80% condition percentage. If bought brand new,
its price would be P550,000.
6.
The partners are to share in profits and…
On June 1, 20x10, HEAD and ACHE decided to form a partnership contributing their
existing businesses. The following is taken form their trial balance:
HEAD
ACHE
Cash
250,000
150,000
Receivables (net)
100,000
80,000
Inventory
125,000
150,000
500,000
400,000
Fixed Assets (net)
Liabilities
250,000
250,000
The partners agreed on the following:
1.
P50,000 of HEAD'S cash represents converted foreign currencies amounting to
FC1,000 on December 31, 20x9. The current spot rate of FC1 is equivalent to
P53.
2.
The receivables of HEAD and ACHE, currently have a net realizable value of
80% it is agreed that their net realizable value must be adjusted to 75%.
3.
HEAD's inventory has a NRV of P140,000 and could be currently sold for
P200,000.
HEAD's machine was purchased last year with a 5-year life. It's estimated
current value is 90% of its cost.
5.
ACHE's fixed asset has an 80% condition percentage. If bought brand new,
its price would be P550,000.
6.
The partners are to share in profits and…
On June 1, 20x10, HEAD and ACHE decided to form a partnership contributing their
existing businesses. The following is taken form their trial balance:
HEAD
ACHE
Cash
250,000
150,000
100,000
80,000
Receivables (net)
Inventory
125,000
150,000
500,000
400,000
Fixed Assets (net)
Liabilities
250,000
250,000
The partners agreed on the following:
1.
P50,000 of HEAD'S cash represents converted foreign currencies amounting to
FC1,000 on December 31, 20x9. The current spot rate of FC1 is equivalent to
P53.
2.
The receivables of HEAD and ACHE, currently have a net realizable value of
80% it is agreed that their net realizable value must be adjusted to 75%.
HEAD's inventory has a NRV of P140,000 and could be currently sold for
P200,000.
3.
HEAD's machine was purchased last year with a 5-year life. It's estimated
current value is 90% of its cost.
5.
ACHE's fixed asset has an 80% condition percentage. If bought brand new,
its price would be P550,000.
6.
The partners are to share in profits and…
Chapter 3 Solutions
EBK ADVANCED FINANCIAL ACCOUNTING
Ch. 3 - What is the basic idea underlying the preparation...Ch. 3 - How might consolidated statements help an investor...Ch. 3 - Prob. 3.3QCh. 3 - Prob. 3.4QCh. 3 - Prob. 3.5QCh. 3 - Prob. 3.6QCh. 3 - Prob. 3.7QCh. 3 - Prob. 3.8QCh. 3 - Prob. 3.9QCh. 3 - Prob. 3.10Q
Ch. 3 - Prob. 3.11QCh. 3 - Prob. 3.12QCh. 3 - What is meant by indirect control? Give an...Ch. 3 - Prob. 3.14QCh. 3 - Prob. 3.15QCh. 3 - Prob. 3.16QCh. 3 - Prob. 3.17QCh. 3 - Prob. 3.18QCh. 3 - Prob. 3.1CCh. 3 - Prob. 3.2CCh. 3 - Prob. 3.1.1ECh. 3 - Prob. 3.1.2ECh. 3 - Prob. 3.1.3ECh. 3 - Prob. 3.1.4ECh. 3 - Multiple-Choice Question on Variable Interest...Ch. 3 - Multiple-Choice Question on Variable Interest...Ch. 3 - Prob. 3.2.3ECh. 3 - Prob. 3.2.4ECh. 3 - Prob. 3.3.1ECh. 3 - Prob. 3.3.2ECh. 3 - Prob. 3.3.3ECh. 3 - Prob. 3.4.1ECh. 3 - Prob. 3.4.2ECh. 3 - Prob. 3.4.3ECh. 3 - Prob. 3.4.4ECh. 3 - Balance Sheet Consolidation On January 1, 20X3,...Ch. 3 - Prob. 3.6ECh. 3 - Prob. 3.7ECh. 3 - Prob. 3.8ECh. 3 - Prob. 3.9ECh. 3 - Reporting for a Variable Interest Entity Gamble...Ch. 3 - Prob. 3.11ECh. 3 - Prob. 3.12ECh. 3 - Prob. 3.13ECh. 3 - Prob. 3.14ECh. 3 - Prob. 3.15ECh. 3 - Prob. 3.16ECh. 3 - Prob. 3.17ECh. 3 - Prob. 3.18ECh. 3 - Prob. 3.19.1PCh. 3 - Prob. 3.19.2PCh. 3 - Prob. 3.20PCh. 3 - Prob. 3.21PCh. 3 - Prob. 3.22PCh. 3 - Prob. 3.23PCh. 3 - Prob. 3.24PCh. 3 - Prob. 3.25PCh. 3 - Prob. 3.26PCh. 3 - Prob. 3.27PCh. 3 - Prob. 3.28PCh. 3 - Prob. 3.29PCh. 3 - Consolidated Worksheet at End of the First Year of...Ch. 3 - Prob. 3.31P
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