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Requirements: 1. Determine the selling price of the equipment purchased by the Parent Company from the Subsidiary Company. 2. The amount of consolidated net income

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Requirements: 1. Determine the selling price of the equipment purchased by the Parent Company from the Subsidiary Company. 2. The amount of consolidated net income in 2020 is: 3. The journal entry to record ITEM NO. 2 transaction will include a debit to Accumulated Depreciation amounting to: 4. As of December 31,2020 , the Non-Controlling Interest Account will show a balance of: 5. In the Subsidiary Company's separate Statement of Financial Position as of December 2020, the Retained Earnings account will show a balance of: 6. The journal entry to record ITEM NO. 3 transaction will include a debit to Accumulated Depreciation amounting to: 7. As of December 31,2021 , the Non-Controlling Interest Account will show a balance of: 8. The amount of consolidated net income attributable to the parent/controlling interest in 2020 is: 9. Determine the selling price of the equipment purchased by the Subsidiary Company from the Parent Company. 10. The amount of consolidated shareholder's equity in 2020 is: 11. In the Parent Company's separate Statement of Financial Position as of December 2020, the Retained Earnings account will show a balance of: 12. In the Parent Company's separate Statement of Financial Position as of December 2021, the Retained Earnings will show a balance of: 13. The amount of consolidated shareholder's equity in 2021 is: 14. The amount of consolidated net income attributable to the non-controlling interest in 2020 is: 15. In the Subsidiary Company's separate Statement of Financial Position as of December 2021, the Retained Earnings will show a balance of: 16. The amount of consolidated net income in 2021 is: 17. The amount of consolidated net income attributable to the non-controlling interest in 2021 is: 18. In the Parent Company's separate Statement of Financial Position as of December 2020, the Investment in Subsidiary Company (cost method) account will show a balance of: 19. In the Parent Company's separate Statement of Financial Position as of December 2021, the Investment in Subsidiary Company (cost method) account will show a balance of: 20. The amount of consolidated net income attributable to the parent/controlling interest in 2021 is: 21. The amount of consolidated retained earnings in 2020 is: 22. The amount of consolidated retained earnings in 2021 is: 23. In computing the 2022 consolidated net income, adjustments will include a "realized gain or loss on the sale of equipment - upstream sale" in the amount of (use the format xxx,xxx REALIZED GAIN or xxx,xxx REALIZED LOSS): 24. In computing the 2022 consolidated net income, adjustments will include a "realized gain or loss on the sale of equipment - downstream sale" in the amount of (use the format xxx,xxx REALIZED GAIN or xxx,xxx REALIZED LOSS): 25. Determine the amount of goodwill (use the format xxx,xxx ) or gain on bargain purchase (use the format: - xxx,xxx ) resulting from the business combination. Comprehensive Problem on Intercompany Transactions On January 1, 2020, Parent Company purchased 80% of the outstanding shares of Subsidiary Company by paying P780,000, the Subsidiary Company's common stock and retained earnings on this date amounted to P 300,000 and P 460,000,000 respectively. Also, Parent Company's common stock and retained earnings on this date amounted to P1,000,000 and P700,000 respectively. Subsidiary Company's assets and liabilities approximated their fair value except: As of the date of acquisition, the fair value of the 20% non-controlling interest was P190,000. Net Income of Parent Company and Subsidiary Company for 2020 and 2021 were as follows: Additional Information: 1. Dividends paid by Subsidiary Company in 2020 and 2021 amounted to P50,000 and P60,000 respectively while the dividends paid by Parent Company in 2020 and 2021 amounted to P 100,000 and P120,000 respectively. 2. A P 30,000 Gain on Sale of Equipment was recorded by Parent Company upon its sale of equipment to Subsidiary Company on October 1, 2020. The equipment, originally acquired on October 1, 2018, cost Parent Company P 300,000. It has an estimated useful life of 5 years with no residual value and is to be depreciated using the sum of the years' digit method. Subsidiary Company will depreciate the equipment using the straight-line method. 3. A P 60,000 Gain on Sale of Equipment was recorded by Subsidiary Company upon its sale of equipment to Parent Company on July 1,2020 . The equipment, originally acquired on July 1,2018 , cost Subsidiary Company P 500,000. It has an estimated useful life of 5 years with no residual value and is to be depreciated using the straight-line method. Parent Company will depreciate the equipment using the sum of the years' digit method. 4. In 2021, Parent Company sold merchandise to Subsidiary Company for P60,000 and in turn, purchased P 40,000 from Subsidiary Company. Inter-company sales of merchandise were made at the following gross profit rates: Sales made by the parent 25% based on cost, Sales made by subsidiary 20% based on sales. On December 31,2021,30% of all inter-company sales remains in the ending inventory of the purchasing affiliate. The January 2021 inventory of Parent Company includes P 2,500 worth of merchandise from Subsidiary Company on which Subsidiary Company reported a profit of 40% on selling price. While January 2021 beginning inventory of Subsidiary Company also includes P 3,000 of merchandise acquired from Parent Company at 35% profit on selling price. 5. Goodwill, if any, is impaired and will be decreased to P54,950 in 2020

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