Compute the consilidated net income of Company A. Company A has a subsidiary, which is accounted for in its separate financial statements using the cost method. At the endof 2016, Company A reports net income of P200,000 in its separate financial statements.Share in net income of subsidiary40,000Cash dividends paid by subsidiary and received by Company A35,000Increase in fair value of investment120,000Assuming it has no other subsidiaries and other transactions affecting the net income at a consolidated level,compute the net income of Company A at a consolidate level given the following additional information.

Consolidated net income refers to the combined income of the parent company and its share in the net…

Answered: AJE ary and received by Company A ment…

AJE ary and received by Company A ment and other transactions affecting the net income : A at a consolidate level given the following addit

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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Company A has a subsidiary, which is accounted for in its separate financial statements using the cost method. At the end of 2016, Company A reports net income of P200,000 in its separate financial statements. Share in net income of subsidiary 40,000 Cash dividend paid by subsidiary and received by Company A 35,000 Increase in fair value of investment 120,000 Assuming it has no other subsidiaries and other transactions affecting net income at a consolidated level, compute the net income of Company A at a consolidate level.
Archie Co. has a subsidiary, which is accounted for in its separate financial statements using the cost method. At the end of 2016, the company reports net income of $20,000 in its separate financial statements. Increase in fair value of investment $12,000 Share in net income of subsidiary $4,000 Cash dividends paid by subsidiary and received by the company $3,500 Assuming it has no other subsidiaries and other transactions affecting the net income at a consolidated level, compute the net income of the company at a consolidate level.
Company A has a subsidiary, which is accounted for in its separate financial statements using the cost method. At the end of 2016, Company A reports net income of P200,000 in its separate financial statements. 8. Assuming it has no other subsidiaries and other transactions affecting the net income at a consolidated level, compute the net income of Company A at a consolidate level given the following additional information:
Artichoke Co. has a subsidiary, which is accounted for in its separate financial statements using the cost method. At the end of 2032, the company reports net income of $200,000 in its separate financial statements. Cash dividends paid by subsidiary and received by the company $35,000 Increase in fair value of investment $120,000 Share in net income of subsidiary $40,000 Assuming it has no other subsidiaries and other transactions affecting the net income at a consolidated level, compute the net income of the company at a consolidate level.
Selected information from the separate and consolidated income statements of CHAELISA LTD.and as subsidiary, JENSOO INC. for the year ended December 31, 2021 are as follows: CHAELISA LTD. JENSOOINC. ConsolidatedSales P600,000 P420,000 P924,000COGS 450,000 330,000 693,000Gross profit P150,000 P 90,000 P231,000 During 2021, CHAELISA LTD. sold goods to JENSOO INC. at the same mark-up on cost that CHAELISA LTD. uses for all sales. At December 31, 2021, JENSOO INC. had not paid all of these goods and still held 37.5% of them in inventory. Compute for the original cost of goods in JENSOO INC.’s inventory acquired from Apple.
A.Selected information from the separate and consolidated income statements of CHARTER LTD. and as subsidiary, MEMBER INC. for the year ended December 31, 2021 are as follows: |CHARTER LTD. P600,000 Consolidated P924,000 693,000 MEMBER INC. Sales P420,000 330,000 P 90,000 COGS 450,000 | Gross profit P150,000 P231,000 During 2021, CHARTER LTD. sold goods to MEMBER INC. at the same mark-up on cost that CHARTER LTD. uses for all sales. At December 31, 2021, MEMBER INC. had not paid all of these goods and still held 37.5% of them in inventory. Compute for the original cost of goods in MEMBER INC.'s inventory acquired from Apple.
REQUIRED 1. Prepare a consolidated balance sheet for Pen Corporation and Subsidiary at December 31, 2011. 2. Compute consolidated net income for 2012 assuming that Pen Corporation reported separate income of $680,000 and Sut Company reported net income of $360,000. (Separate incomes do not include income from the investment in Sut.)
White Bright Limited has three subsidiary Companies as on 31st March, 2018. Based upon the information given in the following, ascertain how the Cost of Investment will be treated in the Consolidated Balance Sheet. Particulars Amount in Millions Hazy Limited Clear Limited Sun Limited Investment made 205.00 117.00 145.00 Percent of Shares Owned 60% 65% 75% Assets at the time of Investment 625.40 314.84 443.75 Liabilities at the time of Investment 260.44 134.84 329.55 don't give hand written answers plz
Following are separate income statements for Austin, Inc., and its 80 percent-owned subsidiary, Rio Grande Corporation as well as a consolidated statement for the business combination as a whole (credit balances indicated by parentheses). Revenues Cost of goods sold Operating expenses Equity in earnings of Rio Grande Individual company net income Consolidated net income Noncontrolling interest in consolidated net income Consolidated net income attributable to Austin Additional Information Austin $ (732,000) 432,000 132,000 (109,600) $ (277,600) Basic Diluted Rio Grande $ (532,000) 268,000 102,000 $ (162,000) Earnings Per Share Consolidated $ (1,264,000) 700,000 259,000 $ (305,000) (27,400) (277,600) • Annual excess fair over book value amortization of $25,000 resulted from the acquisition. • The parent applies the equity method to this investment. Austin has 63,000 shares of common stock and 9,000 shares of preferred stock outstanding. Owners of the preferred stock are paid an annual…
Y Inc. is a wholly owned subsidiary of P Corporation. The following are excerpts from the 2019 condersed statements of financial position of the two companies: P Corp. Y Inc. Sales to Y P500,000 Sales to others Cost of goods sold from P Cost of goods sold trom others Gross profit 2.000.000 P1,500.000 400,000 1,750,000 P750,000 950,000 P150.000 The sales of P to Y are made on the same terms as those made to others.
Under the Cost Method A. The parent’s investment in the Subsidiary is recorded at cost and reduced by an excess dividends received from subsidiary. B. The parent’s investment in the subsidiary is recorded at cost, and never changed thereafter. C. The parent records its pro rata share of the subsidiary’s post-acquisition income as an increase to the investment account and reduces the investment account with its share of the dividends declared by the subsidiary. D. The parent records it pro rata share of the subsidiary’s cumulative earnings as an increase to the investment account and reduces the investment account with its share in the dividends declared by the subsidiary
Provided are the consolidated trial balances of a parent and its less-than-wholly-owned subsidiary. Account Dr (Cr) Current assets Property, net Intangible assets, net Goodwill Liabilities Capital stock Retained earnings, beginning Accumulated other comprehensive income, beginning Noncontrolling interest Dividends Sales revenue Cost of sales and operating expenses Other comprehensive income Noncontrolling interest in net income Noncontrolling interest in other comprehensive income Total $5,000 105,000 10,000 80,000 (162,405) (10,000) (15,000) (200) (2,500) 1,000 (400,000) 390,000 (1,000) 100 5 $0