ABC and XYZ Inc had the following balance sheets on December 31, 2021: (see image below) On January 1, 2022 ABC purchased all of XYZ Inc’s Common Shares for P40,000 in cash. On that date, XYZ’s Current Assets and Fixed Assets were worth P26,000 and P54,000, respectively. Assuming that Consolidated Financial Statements were prepared on that date, determine the value of the current assets of the combined entity

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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ABC and XYZ Inc had the following balance sheets on December 31, 2021: (see image below) On January 1, 2022 ABC purchased all of XYZ Inc’s Common Shares for P40,000 in cash. On that date, XYZ’s Current Assets and Fixed Assets were worth P26,000 and P54,000, respectively. Assuming that Consolidated Financial Statements were prepared on that date, determine the value of the current assets of the combined entity:

АВС
P 60,000
100,000
P160.000
P 42,000
20,000
90,000
8,000
XYZ
P10,000
60,000
P70.000
P35,000
12,000
12,000
11,000
Curent Assets
Fixed Assets (net)
Total Assets
Current Liabilities
Bonds Payable
Common Shares
Retained Earnings
Total Liabilities and Equity
P160.000
P70.000
Transcribed Image Text:АВС P 60,000 100,000 P160.000 P 42,000 20,000 90,000 8,000 XYZ P10,000 60,000 P70.000 P35,000 12,000 12,000 11,000 Curent Assets Fixed Assets (net) Total Assets Current Liabilities Bonds Payable Common Shares Retained Earnings Total Liabilities and Equity P160.000 P70.000
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