P Co has owned 75% of the 100,000 shares of S Co since the incorporation of that company. During the year to 31 December 20X2, S Co sold goods costing GHS16,000 to P Co at a price of GHS20,000 and these goods were still unsold by P Co at the end of the year. Draft statements of financial position of each company at 31 December 20X2 were: P Co Assets Non-current assets Property, plant and equipment Investment: 75,000 shares in S Co at cost Current assets Inventories Trade receivables Total assets Equity and liabilities Equity Ordinary shares Income Surplus Current liabilities Total equity and liabilities GHS 125,000 75,000 50,000 20,000 80,000 150,000 GHS 200,000 70,000 270,000 230,000 40,000 270,000 GHS S Co 120,000 48,000 16,000 100,000 60,000 GHS 120,000 64,000 184,000 160,000 24,000 184,000 Required: Prepare the consolidated statement of financial position of P Co at 31 December 20X2. The fair value of the non-controlling interest at acquisition was GHS25,000.

P Co has owned 75% of the 100,000 shares of S Co since the incorporation of that company. During the year to 31 December 20X2, S Co sold goods costing GHS16,000 to P Co at a price of GHS20,000 and these goods were still unsold by P Co at the end of the year. Draft statements of financial position of each company at 31 December 20X2 were: P Co Assets Non-current assets Property, plant and equipment Investment: 75,000 shares in S Co at cost Current assets Inventories Trade receivables Total assets Equity and liabilities Equity Ordinary shares Income Surplus Current liabilities Total equity and liabilities GHS 125,000 75,000 50,000 20,000 80,000 150,000 GHS 200,000 70,000 270,000 230,000 40,000 270,000 GHS S Co 120,000 48,000 16,000 100,000 60,000 GHS 120,000 64,000 184,000 160,000 24,000 184,000 Required: Prepare the consolidated statement of financial position of P Co at 31 December 20X2. The fair value of the non-controlling interest at acquisition was GHS25,000.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter14: Intercorporate Investments In Common Stock

Section: Chapter Questions

Problem 28P

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