Requirements: 7. What amount of non-controlling interest is to be presented in the consolidated statement of financial position on December 31, 2x19? 8. How much is the consolidated retained earnings attributable to Parents shareholder equity on December 31, 2x19? 9. How much is the total consolidated assets on December 31, 2x19?

Debits CONSOLIDATED BALANCES Credits CONSOLIDATED WORKSHEET DECEMBER 31, 20X9 INCOME AND RETAINED EARNINGS Sales Dividend income Cost of sales Operating expenses Net income 550,000 Parent Subsidiary Company Company 800,000 40,000 (480,000) (250,000) (60,000) (150,000) 300,000 150,000 Retained earnings, Jan 1, 20x19 Dividends declared Retained earnings end 500,000 (100,000) 700,000 100,000 (50,000) 200,000 BALANCE SHEET Cash Receivables Inventory Investment in Subsidiary PPE 300,000 100,000 650,000 350,000 900,000 125,000 30,000 45,000 350,000 Total 2,300,000 550,000 Liabilities Outstanding shares Retained earnings 600,000 1,000,000 700,000 150,000 200,000 200,000 Total 2,300,000 550,000 On January 5, 20x9, Parent Company acquired 80% of the outstanding shares of Subsidiary Company for P350,000 The financial statements of Parent and Subsidiary Company before the acquisition follow: Parent Subsidiary Parent Company Company Value Cash 700,000 100,000 100.000 Inventory 300,000 50,000 55,000 PPE 1,000,000 350,000 365,000 Liabilities 500,000 200,000 200,000 Outstanding Shares 1,000,000 200,000 Retained earnings 500,000 100,000 Financial statements for Parent and Subsidiary for the year ended December 31, 2x19 follow: INCOME AND RETAINED EARNINGS Parent Subsidiary Company Company Sales 800,000 550,000 Dividend income 40,000 Cost of sales (480,000) (250,000) Operating expenses (60.000) (150,000) Net income 300,000 150,000 Retained earnings, Jan 1, 2019 500,000 100,000 Dividends declared (100,000) (50,000) Retained earnings end 700,000 200,000 BALANCE SHEET Cash 300,000 125,000 Receivables 100,000 30,000 Inventory 650,000 45,000 Investment in Subsidiary 350,000 PPE 900.000 350.000 Total 2,300,000 550,000 Liabilities Outstanding shares Retained earnings Total 600,000 1,000,000 700,000 2,300,000 150,000 200,000 200.000 550,000 Additional Information: 1. The undervalued PPE of Subsidiary on the date of acquisition has a remaining useful life of 5-years. Subsidiary Company owes Parent Company P5,000 on December 31, 2x19. 2