ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition-date fair value on intangible ofP300,000 was recognized and is being amortized at the rate of P10,000 per year. The 2022 financialstatementFre as follows:АВСEFGSalesCost of goods soldOperating ExpensesDividend IncomeNet Income800,000600,000(400,000)(100,000)(535,000)(100,000)35,000200,000100,000Retained Earnings, begNet IncomeDividend Paid1,300,000200,000850,000100,000(50,000)900,000Retained Earnings, end(100,000)1,400,000Cash and Receivables300,000700,000InventoryInvestment in EFGFixed AssetsAccumulated DepreciationTotals400,000298,000902,0001,000,000(300,000)2,300,000600,000(200,000)1,400,000LabilitiesOrdinary ShareAccumulated Profit| Totals400,000100,000600,000300,0001,400,0002,300,000900,0001,400,000EFG sold ABC inventory costing P72,000 during the last six months of 2021 for P120,000. At year-end30% remained. EFG sells ABC inventory costing P200,000 during 2022 for P250,000. At year-end, 20% isleft. Compute for Consolidated Cost of Goods sold.

On 30.06.2021, ABC acquired EFG = 70% Financial statement of 2022 states that : 1. In 2021, EFG sold…

ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition-date fair value on intangible of P300,000 was recognized and is being amortized at the rate of P10,000 per year. The 2022 financial statementFre as follows: ABC EFG Sales Cost of goods sold Operating Expenses Dividend Income Net Income 800,000 (535,000) |(100,000) 35,000 200,000 600,000 |(400,000) (100,000) 100,000 Retained Earnings, beg 850,000 1,300,000 200,000 Net Income 100,000 Dividend Paid Retained Earnings, end (100,000) 1,400,000 (50,000) 900,000 Cash and Receivables Inventory Investment in EFG Fixed Assets Accumulated Depreciation Totals 400,000 298,000 902,000 1,000,000 300,000 700,000 600,000 |(200,000) 1,400,000 (300,000) 2,300,000 Labilities |Ordinary Share Accumulated Profit Totals 600,000 300,000 1,400,000 2,300,000 400,000 100,000 900,000 1,400,000 EFG sold ABC inventory costing P72,000 during the last six months of 2021 for P120,000. At year-end 30% remained. EFG sells ABC inventory costing P200,000 during 2022 for P250,000. At year-end, 20% is left. Compute for Consolidated Cost of Goods sold.

ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition-date fair value on intangible of P300,000 was recognized and is being amortized at the rate of P10,000 per year. The 2022 financial statementFre as follows: ABC EFG Sales Cost of goods sold Operating Expenses Dividend Income Net Income 800,000 (535,000) |(100,000) 35,000 200,000 600,000 |(400,000) (100,000) 100,000 Retained Earnings, beg 850,000 1,300,000 200,000 Net Income 100,000 Dividend Paid Retained Earnings, end (100,000) 1,400,000 (50,000) 900,000 Cash and Receivables Inventory Investment in EFG Fixed Assets Accumulated Depreciation Totals 400,000 298,000 902,000 1,000,000 300,000 700,000 600,000 |(200,000) 1,400,000 (300,000) 2,300,000 Labilities |Ordinary Share Accumulated Profit Totals 600,000 300,000 1,400,000 2,300,000 400,000 100,000 900,000 1,400,000 EFG sold ABC inventory costing P72,000 during the last six months of 2021 for P120,000. At year-end 30% remained. EFG sells ABC inventory costing P200,000 during 2022 for P250,000. At year-end, 20% is left. Compute for Consolidated Cost of Goods sold.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition-date fair value on intangible of P300,000 was recognized and is being amortized at the rate of P10,000 per year. The 2022 financial statements are as follows: ABC EFG Sales Cost of goods sold Operating Expenses Dividend Income Net Income 800,000 (535,000) (100,000) 35,000 200,000 600,000 (400,000) (100,000) 100,000 Retained Earnings, beg Net Income Dividend Paid 1,300,000 200,000 (100,000) 1,400,000 850,000 100,000 (50,000) 900,000 Retained Earnings, end Cash and Receivables Inventory Investment in EFG Fixed Assets Accumulated Depreciation Totals 400,000 298,000 902,000 1,000,000 300,000 700,000 (300,000) 2,300,000 600,000 (200,000) 1,400,000 Labilities Ordinary Share 600,000 300,000 400,000 100,000 Accumulated Profit Totals 1,400,000 2,300,000 900,000 1,400,000 ABC sold EFG inventory costing P72,000 during the last six months of 2021 for P120,000. At year-end 30% remained. ABC sells EFG inventory costing P200,000…
The following are several figures reported for Allister and Barone as of December 31, 2021: AllisterBaroneInventory$400,000$200,000Sales 800,000 600,000Investment incomenot given Cost of goods sold 400,000 300,000Operating expenses 180,000 250,000 Allister acquired 70 percent of Barone in January 2020. In allocating the newly acquired subsidiary's fair value at the acquisition date, Allister noted that Barone had developed a customer list worth $65,000 that was unrecorded on its accounting records and had a five-year remaining life. Any remaining excess fair value over Barone's book value was attributed to goodwill. During 2021, Barone sells inventory costing $120,000 to Allister for $160,000. Of this amount, 20 percent remains unsold in Allister's warehouse at year-end. Determine balances for the following items that would appear on Allister's consolidated financial statements for 2021:
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ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition-date fair value on intangible of P300,000 was recognized and is being amortized at the rate of P10,000 per year. The 2022 financial statements-re as follows: EFG 600,000 (400,000) (100,000) ABC Sales Cost of goods sold Operating Expenses Dividend Income Net Income 800,000 (535,000) (100,000) 35,000 200,000 100,000 Retained Earnings, beg Net Income Dividend Paid Retained Earnings, end 1,300,000 200,000 (100,000) 1,400,000 850,000 100,000 (50,000) 900,000 Cash and Receivables |Inventory Investment in EFG Fixed Assets Accumulated Depreciation Totals 400,000 300,000 298,000 902,000 1,000,000 (300,000) 2,300,000 700,000 600,000 (200,000) 1,400,000 Labilities Ordinary Share Accumulated Profit Totals 600,000 300,000 1,400,000 2,300,000 400,000 100,000 900,000 1,400,000 EFG sold ABC inventory costing P72,000 during the last six months of 2021 for P120,000. At year-end 30% remained. EFG sells ABC inventory costing P200,000…
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