Astris Company acquires an 80% interest in Exile Company for P250,000 in cash on January 1, 2022, when Exile Company has the following balance sheet: Assets Liabilities and Equity Current assets Non-current assets P100,000 2000,000 Current liabilities P50,000 Common stock, P10 par 100,000 Retained earnings 150,000 Total assets P300,000 Total liabilities and equity P300,000 Any excess of the price paid over the book value is attributable to fixed assets, which have a 10-year remaining life, Astris Company uses the cost method to record its investment in Exile Company. The following trail balances of the two companies are prepared on December 31, 2022: Astris Company Exile Company Current assets Non-current assets Investment in Exile Company Current liabilities P60,000 P130,000 294,000 180,000 250,000 (60,000) (40,000) Common stock, P10 par (300,000) (100,000) Retained earnings, January 1, 2022 (200,000) (150,000) Sales (150,000) (100,000) Expenses 110,000 75,000 Dividend income (from Exile Company) (4,000) Dividends declared 5,000 Required: Prepare the 2022 consolidated balance sheet.

Astris Company acquires an 80% interest in Exile Company for P250,000 in cash on January 1, 2022, when Exile Company has the following balance sheet: Assets Liabilities and Equity Current assets Non-current assets P100,000 2000,000 Current liabilities P50,000 Common stock, P10 par 100,000 Retained earnings 150,000 Total assets P300,000 Total liabilities and equity P300,000 Any excess of the price paid over the book value is attributable to fixed assets, which have a 10-year remaining life, Astris Company uses the cost method to record its investment in Exile Company. The following trail balances of the two companies are prepared on December 31, 2022: Astris Company Exile Company Current assets Non-current assets Investment in Exile Company Current liabilities P60,000 P130,000 294,000 180,000 250,000 (60,000) (40,000) Common stock, P10 par (300,000) (100,000) Retained earnings, January 1, 2022 (200,000) (150,000) Sales (150,000) (100,000) Expenses 110,000 75,000 Dividend income (from Exile Company) (4,000) Dividends declared 5,000 Required: Prepare the 2022 consolidated balance sheet.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 1MC

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Astris Company acquires an 80% interest in Exile Company for P250,000 in cash on January 1, 2022, when Exile Company has the following balance sheet: Assets Liabilities and Equity Current assets Non-current assets P100,000 2000,000 Current liabilities P50,000 Common stock, P10 par 100,000 Retained earnings 150,000 Total assets P300,000 Total liabilities and equity P300,000 Any excess of the price paid over the book value is attributable to fixed assets, which have a 10-year remaining life, Astris Company uses the cost method to record its investment in Exile Company. The following trail balances of the two companies are prepared on December 31, 2022: Astris Company Exile Company Current assets Non-current assets Investment in Exile Company Current liabilities P60,000 P130,000 294,000 180,000 250,000 (60,000) (40,000) Common stock, P10 par (300,000) (100,000) Retained earnings, January 1, 2022 (200,000) (150,000) Sales (150,000) (100,000) Expenses 110,000 75,000 Dividend income (from…
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