"41 61 1:33 s ... 46: 99% Description X COMPREHENSIVE PROBLEM On April 1, 2016, Popol Corporation purchased 80% of the outstanding stock of Sol Company for P425,000. A condensed financial statement of financial position of So Company at the purchase date follows: Assets Liabilities and Equity Current assets P 180,000 Liabilities P 100,000 Noncurrent assets 320,000 Common stock 200,000 APIC 100,000 Retained Earnings Total assets P 500,000 Total Liabilities and Equity All book values approximated fair values on the purchase date. Any excess cost is attributed to goodwill. The following data has been gathered pertaining to the first 2 years of operation since Popol Corporation's purchase of So Company's stock: a. Intercompany sales of merchandise are summarized as follows: Gross Merchandise profit remaining in rate purchaser's Date Transactions Sales inventory April 1, 2016 to Downstream P 35,000 15% 9,000 March 31, 2017 Upstream 20,000 20% 3,500 April 1, 2017 to Downstream 32,000 22% 6,000 March 31, 2018 Upstream 30,000 25% b. On March 1, 2018, Popol owed Sol P10,000, and Sol owed Popol P5,000 as a result of the intercompany sales. c. Popol paid P25,000 in cash dividends on March 20, 2017 and 2018. Sol paid its first cash dividend on March 10, 2018, giving each share of common stock a PO. 15 cash dividend. d. The trial balance of the two companies as of March 31, 2018 follows: Account Popol Corporation Sol Corporation Dr (Cr) Dr (Cr) Cash 216,200 44,300 Accounts receivable 290,000 97,000 Inventory 310,000 80,000 Investment in Sol 425,000 PPE 1,991,000 340,000 Goodwill 60,000 Accounts Payable (642,200) (106.300) Common stock, P0.50 par (250,000) Common stock, P1 par (200,000) APIC (1,250,000) (100,000) Retained earnings, Apr. 1, 2017 (1,105,000) (140,000) Sales (880,000) (630,000) Dividend Income (24,000) Cost of goods sold 704,000 504,000 Other expense 130,000 .000 Dividends declared 25,000 30,000 Requirements: 1. Prepare the journal entries on the date of acquisition. Then, make the Determination and Allocation of Excess/Goodwill Schedule on April 1, 2016. Further, provide the elimination entries in making the consolidated financial statement at the date of acquisition. 2. Prepare the elimination entries and working paper necessary to produce the consolidated statements of Popol and Sol for the year ended March 31, 2018. 3. Prepare the consolidated financial statements for the year ended March 31, 2018