P Co acquired 80% of the shares in S Co one year ago when the reserves of S Co stood at

$15,000. Draft statements of financial position for each company are as follows.

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P Co S Co

Assets $ $

Non current assets

Property,

plan and equipment 188 200 81000

Investment in S Co 70000 -

258200 81000

Account receivable 42000 23000

Inventory 19345 7277

Total Assets 319545 111277

Equity and liabilities

Equity

Ordinary shares of $1 each 150000 40000

Retainded earnings 80000 38000

230000 78000

Accounts payable 77000 20890

Debt 12545 12387

Total equity and

liabilities 319545 111277

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During the year S Co sold 2000 units of goods to P Co $10 each, the profit to S Co being 20% of selling

price. At the end of the reporting period, 1500 units of these goods remained unsold in the

inventories of P Co.No payments for these goods took place during the year. NCI is valued at full fair value it was valued at 7000 at the date of acquisition.

Required:

Prepare a draft consolidated statement of financial position for P Co