1. On January 1, 202, Pol Inc. issued 25,000 shares of its P10 par value common stock for 80% of the outstanding shares of Sci Company. The fair value of Pollinc stockis P28. Sci Company (SC) measures non-controlling interest (NCI)at fair value. Given below are the statements offinancial position (SFP) of the companies before the acquisition: Pol Inc. Statement of Financial Poston January 1, 202 Assets Liabilities and Equty Cash Accounts Receivable Inventory Land P200.000 Accounts Payable 185.000 Bonds Payable 190,000 Common Stock, P10 par value 300,000 Additional Paid-in Capital (APIC) 740,000 Retained Earnings 420.000 Total Liabilties and Equity P210.000 420.000 400,000 500,000 505.000 P2035 000 Building, net ofdeprediation Equipment, net of depreciation Total Assets Sci Company Statement of Financial Positon January 1, 202 Accounts Receivable Inventory Land Building, net ofdepreciation Equipment, net of depreciation Total Assets Book Value Fair Value P55,000 125.000 90.000 320,000 130.000 2120.000 P1.135.000 P55,000 150.000 130,000 500,000 300.000 Accounts Payable Bonds Payable Common Stock, P2 par value Additional Paid-in Capital Retained Earnings Total Liabilties and Equity P160.000 P160.000 240,000 40.000 160,000 120.000 240,000 Required Prepare the consolidateds showingthe consolidation procedures financial position on the date of acquisition by (Ctrl) –
1. On January 1, 202, Pol Inc. issued 25,000 shares of its P10 par value common stock for 80% of the outstanding shares of Sci Company. The fair value of Pollinc stockis P28. Sci Company (SC) measures non-controlling interest (NCI)at fair value. Given below are the statements offinancial position (SFP) of the companies before the acquisition: Pol Inc. Statement of Financial Poston January 1, 202 Assets Liabilities and Equty Cash Accounts Receivable Inventory Land P200.000 Accounts Payable 185.000 Bonds Payable 190,000 Common Stock, P10 par value 300,000 Additional Paid-in Capital (APIC) 740,000 Retained Earnings 420.000 Total Liabilties and Equity P210.000 420.000 400,000 500,000 505.000 P2035 000 Building, net ofdeprediation Equipment, net of depreciation Total Assets Sci Company Statement of Financial Positon January 1, 202 Accounts Receivable Inventory Land Building, net ofdepreciation Equipment, net of depreciation Total Assets Book Value Fair Value P55,000 125.000 90.000 320,000 130.000 2120.000 P1.135.000 P55,000 150.000 130,000 500,000 300.000 Accounts Payable Bonds Payable Common Stock, P2 par value Additional Paid-in Capital Retained Earnings Total Liabilties and Equity P160.000 P160.000 240,000 40.000 160,000 120.000 240,000 Required Prepare the consolidateds showingthe consolidation procedures financial position on the date of acquisition by (Ctrl) –
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1. On January 1, 20X2, Pol Inc. issued 25,000 shares of its P10 par value common stock for 80% of the
outstanding shares of Sci Company. The fair value of Polinc stockis P28. Sci Company (SC) measures
non-controlling interest (NCI) at fair value. Given below are the statements offinancial position (SFP) of the
companies before the acquisition:
Pol Inc.
Statement of Finandial Positon
January 1, 20X2
Assets
Liabilities and Equty
Cash
Accounts Receivable
Inventory
Land
P200,000 Accounts Payable
185,000 Bonds Payable
190,000 Common Stock, P10 par value
300,000 Additional Paid-In Capital (APIC)
740,000 Retained Earnings
420.000 Total Liabilities and Equity
P2.035.000
P210,000
420,000
400,000
500,000
505.000
P2.035.000
Building, net ofdepreciation
Equipment, net of depreciation
Total Assets
Sci Company
Statement of Financial Positon
January 1,20X2
Book Value Fair Value
P55,000
125,000
90,000
320,000
130.000
P720.000
Accounts Receivable
Inventory
Land
P55,000
150,000
130,000
500,000
300.000
Building, net ofdeprediation
Equipment, net of depreciation
Total Assets
P1135.000
Accounts Payable
Bonds Payable
Common Stock, P2 par value
P160,000 P160,000
240,000
40,000
160,000
120.000
240,000
Additional Paid-In Capital
Retained Earnings
Total Liabilities and Equity
Required: Prepare the consolidateds
showingthe consolidation procedures
financial position on the date of acquisition by
(Ctrl) -
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