Phlaire acquired 70 percent of Syanne on July 1, 20x5. Based on the purchase price, proportionate goodwill of P450,000 was recognized. The 20x6 financial statements are as follows: Phlaire Syanne Income Statement P 900,000 (600,000) (150,000) Sales P 1,200,000 Cost of Goods Sold Operating Expenses Dividend Income (802,500) (150,000) 52,500 -0- Net Income P. 300,000 P 150,000 Statement of Accumulated Profits Accumulated Profits, January 1, 2016 P1,950,000 P 1,275,000 Net Income 300.000 150,000 Dividends Paid (150,000) (75,000) Accumulated Profits, December 31, 2016 P2,100,000 P 1,350,000 Statement of Financial Position P 600,000 447,000 1,353,000 Cash and Receivables Inventory Investment in Syanne Fixed Assets Accumulated Depreciation Total Assets P 450,000 1,050,000 -0- 1,500,000 (450,000) P 3,450,000 P 2,100,000 900,000 (300,000) P 600,000 900,000 450,000 Liabilities P Ordinary share Accumulated profits Total Liabilities and Equity 150,000 2,100 000 (Ctrl) - P 3,450,000 P 2,100,000 Phlaire sells inventory costing P108,000 to Syanne during 20x5 for P180,000. At year's end, 30 percent is left Svanne sellsinventory costing P300 000 to Phlaire during 201x for P375 00 O At vear's end 20 percent is

Phlaire acquired 70 percent of Syanne on July 1, 20x5. Based on the purchase price, proportionate goodwill of P450,000 was recognized. The 20x6 financial statements are as follows: Phlaire Syanne Income Statement P 900,000 (600,000) (150,000) Sales P 1,200,000 Cost of Goods Sold Operating Expenses Dividend Income (802,500) (150,000) 52,500 -0- Net Income P. 300,000 P 150,000 Statement of Accumulated Profits Accumulated Profits, January 1, 2016 P1,950,000 P 1,275,000 Net Income 300.000 150,000 Dividends Paid (150,000) (75,000) Accumulated Profits, December 31, 2016 P2,100,000 P 1,350,000 Statement of Financial Position P 600,000 447,000 1,353,000 Cash and Receivables Inventory Investment in Syanne Fixed Assets Accumulated Depreciation Total Assets P 450,000 1,050,000 -0- 1,500,000 (450,000) P 3,450,000 P 2,100,000 900,000 (300,000) P 600,000 900,000 450,000 Liabilities P Ordinary share Accumulated profits Total Liabilities and Equity 150,000 2,100 000 (Ctrl) - P 3,450,000 P 2,100,000 Phlaire sells inventory costing P108,000 to Syanne during 20x5 for P180,000. At year's end, 30 percent is left Svanne sellsinventory costing P300 000 to Phlaire during 201x for P375 00 O At vear's end 20 percent is

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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