2. Using the information provided in the image below, determine the carrying amount of the inventory that S Company purchased from P Company in the December 31, 2019 consolidated Statement of financial position. Selected information from the separate and consolidated statements of financial position and statements ofcomprehensive income of P Company. and its subsidiary, S Company., as of December 31, 2019, and for theyear then ended is as follows:P CompanyS CompanyConsolidatedStatement of financial position accountsAccounts receivable .Inventory..Investment in S Co..Goodwil.Noncontrolling interes..Stockholders' equity.P 26,00030,000P19.00025,000P 42,00050,00067,00030,00010,000154,000154,00050,000Statement of comprehensive income accountsP200.000150,00050.000Revenues.P140,000110,00030,000P300,000Cost of goods sold.Gross profit ..225,00075,000Equity in eamings of S Co.Net income.P9.000P36,000P20,000P36,000Additional informationDuring 2019. P Company sold goods to S Company at the same markup on cost that P Co usesfor all sales. At December 31, 2019, S Co had not paid for all of these goods and still held 50% ofthem in inventory.P Company acquired its interest in S Company five years earlier (as of December 31, 2019)

Name: 2. Using the information provided in the image below, determine the ca
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Description: 2. Using the information provided in the image below, determine the carrying amount of the inventory that S Company purchased from P Company in the December 31, 2019 consolidated Statement of financial position. Selected information from the separate

Consolidated Statement: Consolidated statement is the accounting report of both the parent company…

Answered: Selected information from the separate…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 82E

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2. Using the information provided in the image below, determine the carrying amount of the inventory that S Company purchased from P Company in the December 31, 2019 consolidated Statement of financial position.

Selected information from the separate and consolidated statements of financial position and statements of
comprehensive income of P Company. and its subsidiary, S Company., as of December 31, 2019, and for the
year then ended is as follows:
P Company
S Company
Consolidated
Statement of financial position accounts
Accounts receivable .
Inventory..
Investment in S Co..
Goodwil.
Noncontrolling interes..
Stockholders' equity.
P 26,000
30,000
P19.000
25,000
P 42,000
50,000
67,000
30,000
10,000
154,000
154,000
50,000
Statement of comprehensive income accounts
P200.000
150,000
50.000
Revenues.
P140,000
110,000
30,000
P300,000
Cost of goods sold.
Gross profit ..
225,000
75,000
Equity in eamings of S Co.
Net income.
P9.000
P36,000
P20,000
P36,000
Additional information
During 2019. P Company sold goods to S Company at the same markup on cost that P Co uses
for all sales. At December 31, 2019, S Co had not paid for all of these goods and still held 50% of
them in inventory.
P Company acquired its interest in S Company five years earlier (as of December 31, 2019)

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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