1. On December 31, 2019, what is the consolidated net income? 2. How much is the carrying value of goodwill as of December 31, 2019?
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- On January 1, 2020, William Corp. (qualifies as SME) paid cash of P600,000 for all the outstanding shares of Kate Company. The carrying value of the assets and liabilities of Kate on January 1, 2020 follow:Accounts Receivable P90,000Inventory 180,000Plant & Equipment (net of Accumulated Depreciation of P220,000) 320,000Goodwill 100,000Liabilities 120,000On January 1, 2020 Kate inventory had a fair value of P150,000 and plant & equipment (net) had a fair value of P380,000. Cost of arranging the combination are as follows: legal fees for combination, P30,000; finder’s fee, P50,000; other miscellaneous direct costs, P20,000.Net income of William and Kate for 2020 amounts to P158,000…The following trial balance has been extracted from the books of account of Beta Co at 31 March 2021: s00 S00 Administrative expenses 210 Called up share capital (ordinary shares of $1 fully paid) Trade receivables 600 470 Bank overdraft 80 Income tax (overprovision in previous year) Provision for retirement benefit costs Distribution costs Non-current asset investments Investment income 25 180 420 560 75 Plant and equipment At cost 750 Accumulated depreciation (at 31 March 2021) Retained earnings (at 1 April 2020) Purchases 220 240 960 Inventories (at 1 April 2020) Trade payables 140 260 Revenue 1,950 Interim dividend paid 120 3.630 3.630 Additional information Inventories at 31 March 2021 were valued at $ 150,000. Required: In so far as the information permits, prepare the company's income statement for the year to 31 March 2021, a statement of financial position at that date and a statement of changes in equity.The related data of Estonia Company: On March 2, 2021, Aruba Inc. declared a cash dividend of P750,000, on which Estonia Company had an 18% ownership. The date of record is March 31, 2021, and the date of payment is April 30, 2021. On May 30, 2021, Estonia Company received a property dividend with a carrying amount of P70,000. The fair value of the property on that date is P80,000 and the fair value on June 30, 2021, which is the date of payment is P89,500. On July 15, 2021, Australia Company declared a liquidating dividend of P500,000, of which Estonia had a 15% interest. How much is the dividend income reported in the Income Statement in 2021?
- Orange Company’s ledger revealed the following account balances as of December 31, 2020: Unamortized discount on bonds payable P120,000; Organization costs P100,000; Losses in early years of company P450,000; Trademarks P750,000 Patents P150,000; Amount set up by BOD as goodwill P300,000. How much should be presented as intangible assets shown In the statement of financial position? * P1,300,000 P1,000,000 P900,000 P0 answer not givenAll the issued and outstanding common stock of MOA Company were brought by Aura Company on October 1, 2020 for P700,000. The assets and liabilities of Aura Company were: Cash 50,000 Accounts receivable (net of P25,000 allowance for bad debts) 250,000 Inventory 150,000 Property & Equipment (net of P100,000, allowance for depreciation) 300,000 Accounts payable 130,000 On October 1, 2020 the fair value of the following assets was as follows: Accounts receivable (net) 235,000 Inventory 130,000 Property & equipment (net) 400,000 There is an unrecorded warranty liability on prior-product sales estimated P20,000 discounted cash flow based on estimated future cash flows. The amount of goodwill as a result of the business combination should be: a) 35,000 b) Zero c) 100,000 d) 65,000All the issued and outstanding common stock of MOA Company were brought by Aura Company on October 1, 2020 for P700,000. The assets and liabilities of Aura Company were: Cash 50,000 Accounts receivable (net of P25,000 allowance for bad debts) 250,000 Inventory 150,000 Property & Equipment (net of P100,000, allowance for depreciation) 300,000 Accounts payable 130,000 On October 1, 2020 the fair value of the following assets was as follows: Accounts receivable (net) 235,000 Inventory 130,000 Property & equipment (net) 400,000 There is an unrecorded warranty liability on prior-product sales estimated P20,000 discounted cash flow based on estimated future cash flows. The amount of goodwill as a result of the business combination should be:
- Problem: On January 2, 2019, Xiao Company purchased an equipment with estimated useful life of 5 years. On January 4, 2021, Xiao sold the equipment to Ganyu Company and recorded the following entry in the books: Cash 39,000 Асс. Dep. 16,000 Equipment 40,000 Gain on sale 15,000 Ganyu Company holds 60% of the outstanding voting shares of Xiao Company, Xiao reported net income of P45,000, and Ganyu reported net income from its own operations of P85,000 for 2021. There is no change in the estimated life of equipment as a result of intercompany transfer. Q#1: The controlling interest in net income is: а. 14,000 b. 12,000 c. 52,000 d. 18,000The balance sheet of the proprietorship of Jacob as of June 30, 2018 showed the following assets andliabilities:Cash P 40,000Accounts Receivable 53,600Inventory 88,000Equipment 65,600Accounts Payable 63,520The cash balance included a 200- share certificate of BW Resources common at acquisition cost of P 1,600; the current market quotation is 70 per share. Of the accounts receivable, an estimated 5% is considered to be doubtful of collection. Certain inventory items, booked at a cost of P22,960, are currently worth P16,000. Depreciation has not been recorded; the equipment, acquired two years ago, has a remaining useful life of about eight more years. Prepaid expense of P 12,800 and accrued expense of P 6,120 have not been properly recognized. Emily and Bert will join Jacob in a partnership. Jacob will invest the net assets of his business, after effecting the appropriate adjustments, and he will be allowed credit for goodwill equal to 10% of his initial capital credit. Emily and Bert…Problem: On January 2, 2019, Xiao Company purchased an equipment with estimated useful life of 5 years. On January 4, 2021, Xiao sold the equipment to Ganyu Company and recorded the following entry in the books: Cash 39,000 Аcс. Dep. 16,000 Equipment 40,000 Gain on sale 15,000 Ganyu Company holds 60% of the outstanding voting shares of Xiao Company, Xiao reported net income of P45,000, and Ganyu reported net income from its own operations of P85,000 for 2021. There is no change in the estimated life of equipment as a result of intercompany transfer. Q#1: In the working paper elimination entry for 2021, the depreciation expense will be a Credited for 5,000 b. Debited for 5,000 c. Credited for 13,000 d. Debited for 13,000
- The following balances as at December 31. 2019 were exctracted from the trial balance of Candlelight Company Limited: DETAILS DR Promises a00,000 10% Mortgage Retained eaminge 400,000 620,000 Goodw General reserves Ordinary shares e2 10% Preference sharessos0 200,000 S5,000 400000 200,000 Share premium 55,000 Motor vehide 750,000 Provision for depreciation: Motor vehice 150,000 10N Debenture 350,000 Mortgage interest Debenture interest Cost of sales Closing stock 20.000 15.000 750,000 90,000 Insurance 30,000 Wages&salaries 60.000 Interm ordinary share dividend 32.000 Bank 53.000 Commission received 23,000 Provided that you have been told that the net loss after tax for the year ended December 31, 2019 is $450,000, transter to general reserves is $55.000. and preference shore dividend is to be accounted for in full, how much is the total retained eamingr at the end of the year? Select one a. $63000 b. 13245.000) C. ($277.000) a. $995.000Use the following information for the next three items: On January 2, 2019, the Statement of Financial Position of Pepper and Steak Company prior to the combination are: Pepper Co. Steak Co. Cash Inventories PPE, net Total Assets Current Liabilities Common stock, P100 par Additional Paid in capital Retained earnings Total Liabilities and Stockholders' equity The fair value of Steak Company's equipment is P153,000. Assume the following independent cases: P450,000 300,000 750,000 P1,500,000 A. P1,410,000 B. P1,419,600 P 90,000 150,000 450,000 810,000 P1,500,000 18. Assuming Pepper Company acquired 70% of the outstanding common stock of Steak Company for P105,000 and Non-controlling interest is measured at fair value of P61,000, how much is the goodwill (gain on acquisition)? C. P23,100 A. P(17,000) D. P(23,100) B. P17,000 or 19. Assuming Pepper Company acquired 80% of the outstanding common stock of Steak Company for P136,800 and non-controlling interest is measured at non-controlling…At the 15 January 2019 , the amount of Retained earnings reported by Moon Corporation is $ 2.500.000 . During 2019 , Moon Corporation and common socks of $ 750,000 , decad and paid cash dividends of $ 140,000 , and declared share dividends of $ 120,000 The amount of net income of 2019 ergsted by Moon Corporation is $ 1,000,000 Moon Corption was required to make a correction of understatement of depreciation expenses in prior years of $ 430,000 ( net of tex ) . Required : How much was the retained camnings reported on 31 December , 2019 ? ( Show your calculational . For the toolbar , press ALT + F10 ( PC ) or ALTHEN F10