Homework Help is Here – Start Your Trial Now!
Business
Accounting
292,000 Total liabilities issuing 5,000 shares with fair value of P60 per share and par value of P40 per share. XYZ's shareholders' equity as of January 1, 2021 comprises the following: 120,000 680,000 Share capital Share premium 200,000 (at carrying amounts) 260,000 Share capital Retained earnings Total equity 200,000 Retained 440,000 96,000 296,000 earnings 176,000 1,380,000 Total equity 376,000 On January 1, 2021, the fair values of the assets and liabilities of TOTAL XYZ, Inc. were determined by appraisal, as follows: eYZ, Inc. Cash LIABILITIES 1,672,000 496,000 Carrying amounts AND EQUITY Fair value Fair values 20,000 increment 20,000 Statements of profit or loss Accounts receivable 48,000 48,000 For the year ended December 31, 2021 ABC Co. 1,200,000 Inventory 92,000 124,000 32,000 XYZ, Inc. 200,000 240,000 40,000 480,000 Equipment Accumulated depreciation Accounts payable Net assets Sales Cost of goods sold Gross profit (660,000) (288,000) (40,000) (48,000) (8,000) 540,000 192,000 (24,000) 296,000 (24,000) Depreciation expense (160,000) (40,000) 360,000 64,000 Distribution costs (128,000) (72,000) Interest expense Profit for the year (12,000) 240,000 The remaining useful life of the equipment is 4 years. During 2021, no dividends were declared by either ABC or XYZ. There were also no inter-company transactions. The group determined that goodwill is impaired by P4,000. ABC's and XYZ's individual financial statements at year-end are shown below: Statements of financial position As at December 31, 2021 ABC Co. 80,000 On acquisition date, ABC Co. elected to measure non-controlling interest at fair value. A value of P75,000 is assigned to the non- controlling interest. XYZ, Inc. ASSETS Cash 92,000 228,000 Accounts receivable 300,000 88,000 Inventory 420,000 60,000 Investment in 300,000 subsidiary Equipment 800,000 200,000 Accumulated (240,000) (80,000) depreciation TOTAL ASSETS 1,672,000 496,000

292,000 Total liabilities issuing 5,000 shares with fair value of P60 per share and par value of P40 per share. XYZ's shareholders' equity as of January 1, 2021 comprises the following: 120,000 680,000 Share capital Share premium 200,000 (at carrying amounts) 260,000 Share capital Retained earnings Total equity 200,000 Retained 440,000 96,000 296,000 earnings 176,000 1,380,000 Total equity 376,000 On January 1, 2021, the fair values of the assets and liabilities of TOTAL XYZ, Inc. were determined by appraisal, as follows: eYZ, Inc. Cash LIABILITIES 1,672,000 496,000 Carrying amounts AND EQUITY Fair value Fair values 20,000 increment 20,000 Statements of profit or loss Accounts receivable 48,000 48,000 For the year ended December 31, 2021 ABC Co. 1,200,000 Inventory 92,000 124,000 32,000 XYZ, Inc. 200,000 240,000 40,000 480,000 Equipment Accumulated depreciation Accounts payable Net assets Sales Cost of goods sold Gross profit (660,000) (288,000) (40,000) (48,000) (8,000) 540,000 192,000 (24,000) 296,000 (24,000) Depreciation expense (160,000) (40,000) 360,000 64,000 Distribution costs (128,000) (72,000) Interest expense Profit for the year (12,000) 240,000 The remaining useful life of the equipment is 4 years. During 2021, no dividends were declared by either ABC or XYZ. There were also no inter-company transactions. The group determined that goodwill is impaired by P4,000. ABC's and XYZ's individual financial statements at year-end are shown below: Statements of financial position As at December 31, 2021 ABC Co. 80,000 On acquisition date, ABC Co. elected to measure non-controlling interest at fair value. A value of P75,000 is assigned to the non- controlling interest. XYZ, Inc. ASSETS Cash 92,000 228,000 Accounts receivable 300,000 88,000 Inventory 420,000 60,000 Investment in 300,000 subsidiary Equipment 800,000 200,000 Accumulated (240,000) (80,000) depreciation TOTAL ASSETS 1,672,000 496,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Compute for the consolidated retained earnings on december 31,2021

On January 1, 2021, ABC Co. acquired 80% interest in XYZ, Inc. by issuing 5,000 shares with fair value of P60 per share and par value of P40 per share. XYZ's shareholders' equity as of January 1, 2021 comprises the following: 292,000 Total liabilities 120,000 680,000 Share capital Share premium 200,000 (at carrying amounts) 260,000 Share capital Retained earnings Total equity 200,000 Retained 440,000 96,000 earnings 176,000 296,000 1,380,000 Total equity 376,000 On January 1, 2021, the fair values of the assets and liabilities of XYZ, Inc. were determined by appraisal, as follows: TOTAL LIABILITIES 1,672,000 496,000 Fair value increment Carrying AND EQUITY XYZ, Inc. amounts Fair values Cash 20,000 20,000 Statements of profit or loss For the year ended December 31, 2021 Accounts receivable 48,000 48,000 Inventory 92,000 124,000 32,000 ABC Co. XYZ, Inc. 200,000 240,000 40,000 Sales 1,200,000 480,000 Equipment Accumulated Cost of goods sold Gross profit (660,000) (288,000) (40,000) (48,000) (8,000) depreciation 540,000 192,000 Accounts payable (24,000) (24,000) Depreciation expense (160,000) (40,000) Net assets 296,000 360,000 64,000 Distribution costs (128,000) (72,000) Interest expense Profit for the year (12,000) The remaining useful life of the equipment is 4 years. During 2021, no dividends were declared by either ABC or XYZ. There were also no inter-company transactions. The group determined that goodwill is impaired by P4,000. ABC's and XYZ's individual financial statements at year-end are shown below: Statements of financial position As at December 31, 2021 240,000 80,000 On acquisition date, ABC Co. elected to measure non-controlling interest at fair value. A value of P75,000 is assigned to the non- controlling interest. ABC Co. XYZ, Inc. ASSETS Cash 92,000 228,000 Accounts 300,000 88,000 receivable Inventory 420,000 60,000 Investment in 300,000 subsidiary Equipment 800,000 200,000 Accumulated (240,000) (80,000) depreciation TOTAL ASSETS 1,672,000 496,000
Transcribed Image Text:On January 1, 2021, ABC Co. acquired 80% interest in XYZ, Inc. by issuing 5,000 shares with fair value of P60 per share and par value of P40 per share. XYZ's shareholders' equity as of January 1, 2021 comprises the following: 292,000 Total liabilities 120,000 680,000 Share capital Share premium 200,000 (at carrying amounts) 260,000 Share capital Retained earnings Total equity 200,000 Retained 440,000 96,000 earnings 176,000 296,000 1,380,000 Total equity 376,000 On January 1, 2021, the fair values of the assets and liabilities of XYZ, Inc. were determined by appraisal, as follows: TOTAL LIABILITIES 1,672,000 496,000 Fair value increment Carrying AND EQUITY XYZ, Inc. amounts Fair values Cash 20,000 20,000 Statements of profit or loss For the year ended December 31, 2021 Accounts receivable 48,000 48,000 Inventory 92,000 124,000 32,000 ABC Co. XYZ, Inc. 200,000 240,000 40,000 Sales 1,200,000 480,000 Equipment Accumulated Cost of goods sold Gross profit (660,000) (288,000) (40,000) (48,000) (8,000) depreciation 540,000 192,000 Accounts payable (24,000) (24,000) Depreciation expense (160,000) (40,000) Net assets 296,000 360,000 64,000 Distribution costs (128,000) (72,000) Interest expense Profit for the year (12,000) The remaining useful life of the equipment is 4 years. During 2021, no dividends were declared by either ABC or XYZ. There were also no inter-company transactions. The group determined that goodwill is impaired by P4,000. ABC's and XYZ's individual financial statements at year-end are shown below: Statements of financial position As at December 31, 2021 240,000 80,000 On acquisition date, ABC Co. elected to measure non-controlling interest at fair value. A value of P75,000 is assigned to the non- controlling interest. ABC Co. XYZ, Inc. ASSETS Cash 92,000 228,000 Accounts 300,000 88,000 receivable Inventory 420,000 60,000 Investment in 300,000 subsidiary Equipment 800,000 200,000 Accumulated (240,000) (80,000) depreciation TOTAL ASSETS 1,672,000 496,000
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Earning per share and Dilutive securities
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS