09 Homework Worksheets

1- On 1/1/2019 Company P acquired 85% of Company S for 2500000 JD. On 30/11/2019 Company S declared dividends 170000 JD. Using cost method, P will record dividends income: Select one: a. 153000 b. 144500 c. 127500 d. 119000

Company A Acquires Company B at $9 per share Company B; Trading at $5, 1,000,000 outstanding shares Company A synergies of $6,000,000 from acquisition FInd Max price Company A should Pay for Company B

capital, par value of P100, 25,000 shares Tunn Company revealed the following shareholders' equity since inception of operations. There was no change in the 31, 2021 is declared and paid. P1,500,000, P1,000,000 and P500,000, respectively, and net Problem 18-32 (AICPA Adapted) The maximum amount available for dividend on December The entity reported net loss for 2017, 2018 and 2019 at 10% fully participating, cumulative preference share Ordinary share capital, par value of P100, 75,000 shares 7,500,000 capital balances since the entity started operations five years 12% nonparticipating, noncumulative preference share income for 2020 and 2021 at P1,750,000 and P6,250,000, The entity had not paid a cash or issued a share dividend an December 31, 2021- on value of P100, 10,000 shares capital, par 1,000,000 2,500,000 The eneption of operati1ons. There was no change in the capital b ago. respectively. The maximum amount available for dividend on December 31. 2021 is declared and paid. d as…

QUESTION 3 Given below are the statements of financial position of H and its subsidiary of S as at 31st December 2016 H S RM RM Ordinary shares of RMI each 600,000 350,000 Revaluation reserve 80,000 30,000 Retained profit 120,000 60,000 Liabilities 110,000 15,000 910000 455000 Sundry assets 560,000 455000 Investment in S- 280,000 ordinary 350,000 shares at cost 910000 455000 H acquired 280,000 of 350,000 ordinary shares of S on 1 January 2013 when the balances in S accounts were: Revaluation reserve: Retained profit: RM25000 RM45000 a. Prepare the statement that clearly show the amount of goodwill, non- controlling interest, group retained profit and group revaluation reserve.

PROBLEM ON INTERCOMPANY TRANSACTIONS   On January 2, 2008, BMO acquired 90% of the outstanding shares of MARCELINE Co. at book value. During 2008 and 2009, intercompany sales amounted to $2,000,000 and 4,000,000, respectively. MARCELINE Co. consistently recognized 25% mark-up based on sales while BMO had a 25% gross profit on cost. The inventories of the buying affiliate, which all came from inter-company transactions are as follows:   December 31, 2008 December 31, 2009 BMO $240,000 $160,000 MARCELINE $100,000 $40,000 On October 1, 2008, BMO purchased a piece of land costing $1,000,000 from MARCELINE for $1,500,000. On December 31, 2009, BMO sold this land to an unrelated party for $1,500,000. On the other hand, on July 1, 2009, BMO sold a used machine with a carrying value of $60,000 and remaining life of 3 years to MARCELINE CO. for $42,000. Below are the Statement of Comprehensive Income for the two companies in 2009.     BMO CO. MARCELINE CO. Sales $14,040,000…

of $000 $000 $000 $000 Non-current assets 407 160 ion Investment in Jerry (90,000) 128 Net Current Assets 125 90 660 250 Ordinary share ($1 each) 500 150 Reserves 60 Retained and earnings 100 40 General 60 160 100 660 250 Ben acquired the shareholding during 2021 when Jerry's retained earning account had a credit balance of $30,000 and general reserves, $20,000 Required: Prepare the consolidated Statement of Financial Position of the Ben Group as at December 31, 2021.

Consolidated Statements of Changes in Shareholders' Equity ($ in thousands) Share Capital Contributed Surplus Retained Earnings AOCI(1) Total Balance at January 31, 2015 $ 167,460 $ 2,831 $ 140,527 $ 18,465 $ 329,283 Net earnings for the year — – 69,779 – 69,779 Other comprehensive income (Note 12) – – 4,583 11,953 16,536 Other comprehensive income of equity investee – – (15) – (15) Comprehensive income – – 74,347 11,953 86,300 Equity settled share-based payments – 124 – – 124 Dividends (Note 19) – – (58,210) – (58,210) Issuance of common shares (Note 15) 450 (335) – – 115   450 (211) (58,210) – (57,971) Balance at January 31, 2016 $167,910 $ 2,620 $156,664 $ 30,418 $357,612 Balance at January 31, 2014 $ 166,069 $ 3,528 $ 145,762 $ 7,081 $ 322,440 Net earnings for the year — – 62,883 – 62,883 Other comprehensive income (Note 12) – – (11,968) 11,384 (584) Other comprehensive income of equity investee – – 30 – 30 Comprehensive income – – 50,945 11,384…

1/ PAR lends $10,000 to SUB (80% owned by PAR) on 7/1/2015. SUB signs a one-year, 8% Note, interest payable on the due date. What is the interest receivable that is reported in the 2015 consolidated balance sheet?   2/ Parent                          Subsidiary Sales                            $1,500,000                  $500,000 Cost of Goods Sold     750,000                       250,000 Operating Expenses    550,000                       150,000 Net Income                 $200,000                     $100,000 Inventory 12/31/X1     $60000                   $120000 -          Parent owns 80% of Subsidiary’s common stocks. -          Subsidiary sold $200,000 of goods to Parent. -          Of the $200,000 goods, $60,000 were not sold on 12/31/X1. -          Parent and Subsidiary have a uniform margin (gross profit rate) on all of its sales. What amount will be reported as a consolidated cost of goods sold?   3/ In 2020, the parent company purchased bonds (issued by the subsidiary) from…

1. Nicole Company acquires 75% of Carl John Company (CJC) for P6,000,000. The carrying and fair values of CJC's net assets at the time of acquisition are P4,500,000 and P4,900,000, respectively. Required: a. Determine the goodwill or gain on bargain purchase assuming the consideration paid includes control premium of P852,000. b. Determine the goodwill or gain on bargain purchase assuming the consideration paid excludes control premium of P138,000 and the fair value of the non-con- trolling interest is P736,500. 3. Father Corporation (FC) acquires 20% ownership interest in Son Corporation (SC) on January 1, 202X, for P1,750,000 cash, which is the fair value of the investment at that date. FC has concluded that it does not have a significant influence over SC. At the same date, the fair and carrying values of SC's identifiable assets is P5,000,000 and P3,000,000. The identifiable assets include land, which has fair and carrying values of P4,000,000 and P3,000,000, respectively. For the…

P 5-2 Computations (upstream sales) Pop Corporation acquired a 90 percent interest in Son Corporation at book value on January 1, 2016. Intercompany purchases and sales and inventory data for 2016, 2017, and 2018, are as follows:   Sales by Son to Pop Intercompany Profit in Pop’s Inventory at December 31 2016 $200,000 $15,000 2017  150,000  12,000 2018  300,000  24,000 Selected data from the financial statements of Pop and Son at and for the year ended December 31, 2018, are as follows:   Pop Son Income Statement     Sales $900,000 $600,000 Cost of sales  625,000  300,000 Expenses  225,000  150,000 Income from Son  124,200   — Balance Sheet     Inventory $150,000 $ 80,000 Retained earnings December 31, 2018  425,000 220,000 Capital stock  500,000 300,000 Required Prepare well-organized schedules showing computations for each of the following: Consolidated…

CH Required information Sovran Financial Corporation reported net income of $154 mlion for the current year (tax rate 25%). Its capital structure consksted of the folkowing. Unchanged during the year Common Stock Jan. 1 60 million common shares were outstanding (S amounts in milions, except per share amount) Basic EPS: Netincome $154 $2.57 60 Shares outstanding 0:00/1:23 720p 1X CC O Knowledge Check 01 Greene Corporation reported net income of $300,000. The company had 60,000 common shares outstanding, which remained unchanged during the current year. What is the company's basic EPS? (Round your answer to 2 decimal places.) Basic EPS IMG-1894.jpg IMG-1895.jpg IMG-1896.jpg --pdf 490CA57F-89F1....pdf

INVESTMENT IN ASSOCIATE 1. On January 1, 2021 Dona Company purchased 10% of another entity’s outstanding ordinary shares for P6,000,000. The investment classified as nonmarketable equity security and accounted for under the cost method. The following data pertain to investee’s operations for 2021 and 2022:2021 2022Net income 3,000,000 4,000,000Dividend paid none 9,000,000 What amount should Dona Company report as dividend income in its 2022 income statement?

Question Two The Whispering Cove plc has provided the following as at December 31, 2017 Cost of Sales Closing Stock 10% Debenture Debenture Interest General Reserves Retained Earnings Goodwill Ordinary Share Capital @ $2 10% Preference Share Capital @ $1 Sales Turnover Debtors Bank Administrative Costs Selling and Distribution Costs Property Plant & Equipment Motor Vehicle Provision for Depreciation on Motor Vehicle Creditors Interim Ordinary Shares Dividend Additional Details Provided DR 700.000 210,000 20,000 20,000 200,000 60,000 122,000 139,000 600,000 500,000 CR 350,000 1. Prepa the lowing for year ending December 31, 2017 : a) The Statement of Profit and Loss 40,000 b) The Statement of Change in Equity NOTE: The Statement of Financial Position is NOT required 2. State three factors that may influence a company's decision to pay dividends 400,000 400,000 1,300,000 8,000 5,000 2,576,000 2,576,000 40,000 38,000 1. The motor vehicle is to be depreciated at 10% p.a. on the reducing…

Question Armadillo Enterprises acquired the following equity investmentsat the beginning of year 1 as trading investments. Description Number of shares Market price per share Total price Finestra Company 15,000 X $25 $387,500 BVD Company 20,000 x$18 |S360,000 Market values at theend of Years 1 &2 are presented below: Market/Fair Value End of year 1 End of year 2 Finestra Company IS19 $23 BVD Company $22 $28 REQUIREMENTS: ( Prepare the journal entry to record the acquisition of theinvestments. Prepare the adjusting journal entry required at the end of year1. Armadillo Enterprises sells 15,000 shares of BVD Company for $16at the beginning of year 2. Prepare the journal entry to record thesale. Prepare the adjusting journal entry required at the end of year2. Assume that ArmadilloEnterprises now holds these investments asavailable-for-sale. Prepare the journal entry to record the acquisition of theinvestments. Prepare the adjusting journal entry required at the end of year1. Armadillo…

On 1/1/2019 P Company acquired 70% of S company for 400000 JD. On 31/12/2019 S company reported net income 43000 JD and declared dividends 13000 JD. Positive differences is 35000 JD relating to assets with 5 years life. Using the complete equity method, compute investment balance on 31/12/2019. Select one: a. 370600 b. 369200 C. 367800 d. 366400

Current Attempt in Progress These are two independent situations: 1. Pharoah Cosmetics acquired 13% of the 278,500 shares of common stock of Elite Fashion at a total cost of $14 per share on March 18, 2022. On June 30, Elite declared and paid a $69,800 dividend. On December 31, Elite reported net income of $263,120 for the year. At December 31, the market price of Elite Fashion was $15 per share. 2. Sheffield Inc. obtained significant influence over Kasey Corporation by buying 25% of Kasey's 30,500 outstanding shares of common stock at a total cost of $11 per share on January 1, 2022. On June 15, Kasey declared and paid a cash dividend of $32,100. On December 31, Kasey reported a net income of $120,900 for the year. Prepare all the necessary journal entries for 2022 for Sheffield Inc. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No…

Particulars No. of equity shares Profit after tax Market Price Per Share Compute the following: i) EPS of both the companies ii) Exchange Ratio Infinity Limited 6,00,000 $20,00,000 $20 Global Limited 2,00,000 $10,00,000 $15

QUESTION ONE The following financial information relates to Sporty Limited. Statement of Financial Position as at 31 December 2018 and 2019 Ordinary share capital Retained earnings Property, plant and equipment Investments Debentures 12.5% Inventory Trade debtors Prepaid expenses Trade creditors Bank overdraft SARS (income tax) Shareholders for dividends Profit before interest and tax Depreciation on equipment Dividends received on investments Interest on dividends Income tax Page 2 of 6 2019 R 400 000 55 000 230 000 165 000 20 000 124 000 37 000 Statement of comprehensive income for the year 31 December 2019 Note no. 1 for the year ended 31 December 2018 and 2019 Property, plant and equipment Land and building at cost Equipment at carrying value 25 000 21 000 5 000 30 000 Statement of changes in equity for the year ended 31 December 2019 Dividends on ordinary shares 2019 (R) 200 000 30 000 230 000 R R 295 000 5 000 195 000 110 000 2018 60 000 120 000 28 500 1 500 42 500 25 000 R 60…

9.1 Calculate Left Ltd's share of profits in Right Ltd for the year ended 30 June 2023. The following information is relevant to questions 9.1 and 9.2. Left is a parent company that prepares consolidated financial statements. On 1 July 2021 Left Ltd acquired 40% of the equity in Right Ltd for $220 000. At this date the equity in Right Ltd consisted of: Capital $250 000 Revaluation reserve $50 000 Retained profits $150 000 Right Ltd carried its assets fair values with the exception of one item of plant & equipment whose fair value was $20 000 greater than its carrying amount. The estimated useful life of this item is 4 years. Summary of movements in the retained earnings of Right Ltd: 2022 2023 Profit after tax Retained profits at start Dividends 140 000 200 000 150 000 210 000 (80 000) 210 000 (100 000) 310 000 Retained profits at end At 30 June 2022 there were unrealised profits before tax of $10 000 arising from inventory transfers between the two entities.

Adj Chance Company * March On April 10, On May AL and During 202A, On Febru On March 31, 20 3. Presented below are two independent situations. Situation 1 cburgo aimsys anivzollot si 50S T 1261 C128 16 2500 blo Pharoah Tables acquired 15% of the 4,800,000 shares of common stock of Robot Sofas at a total cost of $7.80 per share on April 1, 2025. On August 8, Robot Sofas declared and paid a $267,000 cash dividend. On December 31, Robot Sofas market price was $8.30 per share and the company reported net income of $625,000 for the year. Situation 2 On January 1, 2025, Coronado Company purchased 40% of Santos Corporation 525,000 outstanding shares of common stock at a total cost of $14 per share. On October 25, Santos declared and paid a cash dividend of $0.40 per share. On December 31, Santos reported a net income of $928,000 for the year and the market price of its common stock was $15 per share. A. Show the financial presentation of both securities on the Income Statement and B/S. Try to…

CONSOLIDATED FINANCIAL STATEMENTS INTERCOMPANY SALE OF FIXED ASSETS PROBLEM J. Peter Corporation owns 80% of the outstanding stocks of Simon Company acquired at book value during 2021. Selected information from the accounts of both entities for 2021 and 2022 are as follows: PETER Corporation SIMON Company 2021 2022 2021 2022 P 900,000 P 450,000 (248,000) (140,000) (20,000) Sales P 800,000 P 500,000 Cost of goods sold Operating expenses Loss on sale of equipment (480,000) (180,000) (30,000) 50,000 (540,000) (190,000) (20,000) 60,000 (310,000) (145,000) (10,000) Gain on sale of land 65,000 75,000 Gain on sale of patent 10,000 12,000 5,000 7,000 Equipment Accumulated depreciation 1,180,000 (320,000) 900,000 820,00 700,000 (260,000) 2,500,000 (200,000) 1,500,000 (170,000) 1,100,000 Land 2,800,000 520,000 (110,000) Patent 560,000 480,000 420,000 Accumulated amortization (80,000) (90,000) (70,000) On April 30, 2021, PETER Corp sold equipment to SIMON Comp for P120,000. The said equipment was…

Question 1 a) Given below are the statements of financial position of H and its subsidiary S as at 31 December 2021. Ordinary shares of RM1.00 each Share premium Revaluation reserve Retained profit Liabilities Inventory Accounts receivable H RM 120,000 250,000 70,000 100,000 Fixed Assets - Land 300,000 Investment in S - 150,000 ordinary shares at cost 250,000 RM Share premium 50,000 Revaluation reserve 15,000 Retained profit 20,000 S RM 500,000 200,000 100,000 50,000 40,000 30,000 50,000 20,000 50,000 50,000 740,000 350,000 i. NCI is not measured at fair value. H acquired 150,000 of the ordinary shares of S on 1 January 2017 when the balance in S's accounts were: 740,000 350,000 Required: Prepare the consolidated statement of financial position of H and of its subsidiary S as at 31 December 2021 where: ii. NCI is measured at fair value where the fair value of S's shares on 1 January 2017 was RM1.45 per share and on 31 December 2021 was RM1.80

You have been provided with the following extracts of the financial statements of Provision Ltd for the year ended 31 December 2018. Statement of financial position for the year ended 31 December 2018 Non-current assets Current assets Inventories Trade receivables Cash Total assets Equity and Liabilities Shareholders equity and reserves Contributed equity (ordinary shares) Retained income Preference shares - Non-current liabilities Loan Current liabilities Trade payables Dividends payable Inland Revenue Total equity and liabilities Note 1 S S SSS S $ SSS S SSS S S S 2018 328,000 S 498,000 S 170,000 S 90,000 $ 62,000 $ 55,000 18,000 $ 5,000 $ 2017 80,000 $ 48,000 $ 12,000 $ 20,000 $ 286,000 170,000 110,000 418,000 $ 290,000 170,000 $ 198,000 $ 50,000 $ S S 456,000 110,000 130,000 50,000 100,000 66,000 44,000 10,000 12,000 498,000 S 456,000 Extract from the statement of profit and loss for the year ended 31 December 2018: Gross revenue S 375,000 Cost of sales $ 217,000 S 158,000 Net…

For the year ended December 31, the following results were given:                                  Dividend Paid          Net Income Parent Company           P15,000                 P30,200Subsidiary Company         4,000                     9,400 Using the proportionate basis or partial goodwill method, compute the profit attributable to equity holders of parent (or controlling interestin consolidated net income) on December 31:A. P 26,600           C. P 36,000B. P32,090            D. P 44,100

The Wondai Ltd Croup reports the following balances in its consolidated financial statements for the year ending 30 June Financial year 2018 $ 2017 $ Buildings 524,000 268,000 ACC Depr. - Buildings 190,000 143,000 Depr Expense - Buildings 50,000 23,000 On1 July 2017. the Wondai Ltd Group acquired 80%. the shares in Yallingup Ltd. which recorded the following account balances at that date: 1 July 2017 $ Buildings 80,000 Acc Depr.- Buildings 32,000 During the year ended 30 June 2018, the Wondai Ltd Group disposed of buildings with a carrying. amount of $63,000 Required: Calculate the amount of consolidated cash flows from investing activities in relation to the purchase of buildings for the year ending 30 June 2018

On 1/1/2019 P Company acquired 70% of S company for 400000 JD. On 31/12/2019 S company reported net income 41000 ID and declared dividends 11000 JD. Positive differences is 35000 JD relating to assets with 5 years life. Using the complete equity method investment balance on 31/12/2019 is: Select one: O a. 370600 Ob. 369200 O c. 367800 d. 366400