Popoy Corporation (PC) purchased all the common shares of Sia Company (SC) on January 1, P180,000 cash. The fair value and carrying amounts of SC's net identifiable assets are equal. The trial balances for both companies on December 31, 20X1 are as follows: 1, for Popoy Corporation Credit Sia Company Debit Credit Debit Cash 15,000 5,000 70,000 60,000 Accounts Receivable 30,000 70,000 Inventory Depreciable Assets, net Investment in Samantha Company Operating Expenses Cost of Goods Sold 325,000 180,000 25,000 105,000 40,000 225,000 15,000 75,000 10,500 Dividends Declared Accounts Payable Notes Payable 50,000 99,500 40,500 120,000 Common Stock 200,000 100,000 Retained Earnings Sales 230,000 200,000 10,500 790.000 80,000 120,000 Dividend Income 790.000 460,500 460,500

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

Prepare the set of consolidated financial statements at the end of the year.

Popoy Corporation (PC) purchased all the common shares of Sia Company (SC) on January 1, 20X1, for
P180,000 cash. The fair value and carrying amounts of SC's net identifiable assets are equal. The trial balances
for both companies on December 31, 20x1 are as follows:
Sia Company
Debit
Popoy Corporation
Debit
Credit
Credit
Cash
Accounts Receivable
Inventory
Depreciable Assets, net
Investment in Samantha Company
Operating Expenses
Cost of Goods Sold
15,000
5,000
30,000
70,000
60,000
225,000
70,000
325,000
180,000
25,000
15,000
105,000
75,000
Dividends Declared
Accounts Payable
Notes Payable
Common Stock
40,000
10,500
50,000
99,500
200,000
230,000
200,000
10,500
40,500
120,000
100,000
Retained Earnings
Sales
80,000
120,000
Dividend Income
790,000
790,000
460,500 460,500
Transcribed Image Text:Popoy Corporation (PC) purchased all the common shares of Sia Company (SC) on January 1, 20X1, for P180,000 cash. The fair value and carrying amounts of SC's net identifiable assets are equal. The trial balances for both companies on December 31, 20x1 are as follows: Sia Company Debit Popoy Corporation Debit Credit Credit Cash Accounts Receivable Inventory Depreciable Assets, net Investment in Samantha Company Operating Expenses Cost of Goods Sold 15,000 5,000 30,000 70,000 60,000 225,000 70,000 325,000 180,000 25,000 15,000 105,000 75,000 Dividends Declared Accounts Payable Notes Payable Common Stock 40,000 10,500 50,000 99,500 200,000 230,000 200,000 10,500 40,500 120,000 100,000 Retained Earnings Sales 80,000 120,000 Dividend Income 790,000 790,000 460,500 460,500
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Financial Information
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