Question
The following are selected account balances from Cheela Company and Jarjar Corporation as of December 31, 2018: Cheela Jarjar Revenues P 980,000 P 560,000 Expenses
The following are selected account balances from Cheela Company and Jarjar Corporation as of December 31, 2018:
| Cheela | Jarjar |
Revenues | P 980,000 | P 560,000 |
Expenses | 560,000 | 420,000 |
Dividend Income | 84,000 |
|
Dividends Paid | 112,000 | 84,000 |
Accumulated profits, 1/1/18 | 840,000 | 280,000 |
Current Assets | 560,000 | 700,000 |
Building (net) | 1,260,000 | 560,000 |
Equipment (net) | 840,000 | 1,400,000 |
Investment in Jarjar Corp. | ? |
|
Liabilities | 700,000 | 1,932,000 |
Ordinary Shares | 840,000 (P20 par) | 280,000 (P10 par) |
Share Premium | 210,000 | 112,000 |
On January 1, 2018, Cheela acquired all of the outstanding shares of Jarjar for P298,000 in cash and ordinary shares. Cheela also pays P24,000 in lawyers fees and other combination costs as well as P14,000 in share issuance costs. At the date of acquisition, Jarjars buildings (with a six-year remaining life) have a P616,000 book value and a fair market value of P784,000.
Required:
Prepare the consolidated statements worksheet and present all elimination entries that would have been included in the consolidated statements worksheet to prepare a full set of consolidated financial statements for the year 2018.
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