has the following balance sheet: Assets Liabilities and Equity Current assets P100,000 Current liabilities P50,000 Non-current assets 2000,000 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: Current assets Non-current assets Investment in Exile Company Current liabilities Astris Company Exile Company P60,000 P130,000 294,000 180,000 250,000 (60,000) (40,000)
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- During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 lossAstris 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…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…
- The Ludel Company acquired the net assets of the Girl Conrad Company on January 1, 2018, and made the following entry to record the purchases:Current assets P100,000Equipment 150,000Land 50,000Buildings 300,000Goodwill 100,000Liabilities 80,000Common stock, P1 par 100,000Paid-in capital in excess of par 520,0001. Assuming that additional shares on January 1, 2020 would be issued on that date to compensate for any fall in the value of Ludel common stock below P16 per share. The settlement would be to cure the deficiency by issuing added shares based on their fair value on January 1, 2020. The fair price of the shares on January 1, 2020 was P10.What is the additional number of shares issued on January 1, 2020 to compensate for any fall in the value of the stock? a. 60,000b. 100,000c. 10,000d. 160,000 2. The Jonnie Company owns 75% of the Junior Company. On December 31, 2020, the last day of the accounting period, Junior sold to Jonnie a non-current asset for P200,000. The asset…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 P100,000 Current liabilities P50,000 Non-current assets 2000,000 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: Required: 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…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 P100,000 Current liabilities P50,000 Non-current assets 2000,000 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 P60,000 P130,000 294,000 180,000 250,000 Current liabilities (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…
- Ed Company acquired the assets and assumed the liabilities of Sheeran Inc. on June 30, 2022. The consideration transferred by the acquirer were as follows: Cash amounting to P2,000,000. Issued 10,000 ordinary shares at P10 par with a market price of P15. Issued 5 year interest bearing bonds payable with a face value of P3,000,000 with a nominal rate of 10% and effective interest of 12%. (use two decimal places for the present value factor) Acquisition related costs incurred were as follows: Legal fees amounting to P120,000, 70% of which is not yet paid. Share issue costs paid amounted to P15,000. Bond Issue costs paid amounting to P120,000. The Balance Sheet of the two entities before acquisition were as follows: Ed Company Sheeran Inc. Total Assets 16,500,000 5,235,000 Total Liabilities 2,500,000 500,000 Ordinary Shares 5,000,000 1,250,000 Share premium 1,500,000 750,000 Retained Earnings 6/30/22 7,500,000 2,735,000…On 30 June 2020 Pink Ltd acquired all assets (except for cash) and assumed all liabilities (except for debentures) of Purple Ltd. At this date, the carrying amounts of assets and liabilities of Purple Ltd were at fair value and consisted of: $15,000 32,000 40,000 Cash Accounts payable $9,000 Accounts receivable Debentures (10%) Share capital ($2 shares) Retained earnings 40,000 Inventory 110,000 Shares in listed companies 90,000 48,000 Motor Vehicle 45,000 Accumulated depreciation (15,000) In exchange for these net assets, Pink Ltd agreed to: issue two (2) Pink Ltd shares for every five (5) shares in Purple Ltd. On 30 June 2020 Pink Ltd shares were valued at $5.50 provide sufficient additional cash in order for Purple Ltd to pay out the debentures (including interest) and liquidation costs of $3,500. Required: Prepare an acquisition analysis for Pink Ltd's acquisition of Purple Ltd. wwwwEd Company acquired the assets and assumed the liabilities of Sheeran Inc. on June 30, 2022. The consideration transferred by the acquirer were as follows: Cash amounting to P2,000,000.Issued 10,000 ordinary shares at P10 par with a market price of P15.Issued 5 year interest bearing bonds payable with a face value of P3,000,000 with a nominal rate of 10% and effective interest of 12%. (use two decimal places for the present value factor) Acquisition related costs incurred were as follows: Legal fees amounting to P120,000, 70% of which is not yet paid.Share issue costs paid amounted to P15,000.Bond Issue costs paid amounting to P120,000. The Balance Sheet of the two entities before acquisition were as follows: Taylor Company Swift Inc. Total Assets 16,500,000 5,235,000 Total Liabilities 2,500,000 500,000 Ordinary Shares 5,000,000 1,250,000 Share premium 1,500,000 750,000 Retained Earnings 6/30/22 7,500,000 2,735,000 It…
- A Company acquired the assets and assumed the liabilities of B Inc. on June 30, 2022. The consideration transferred by the acquirer were as follows: • Cash amounting to P2,000,000. • Issued 10,000 ordinary shares at P10 par with a market price of P15. • Issued 5 year interest bearing bonds payable with a face value of P3,000,000 with a nominal rate of 10% and effective interest of 12%. (use two decimal places for the present value factor) Acquisition related costs incurred were as follows: • Legal fees amounting to P120,000, 70% of which is not yet paid. • Share issue costs paid amounted to P15,000. • Bond Issue costs paid amounting to P120,000. The Balance Sheet of the two entities before acquisition were as follows: A Company B Inc.Total Assets 16,500,000 5,235,000Total Liabilities 2,500,000 500,000Ordinary Shares 5,000,000 1,250,000Share premium 1,500,000 750,000Retained Earnings 6/30/22 7,500,000 2,735,000It was determined that the book value of the assets and liabilities of the…A Company acquired the assets and assumed the liabilities of B Inc. on June 30, 2022. The consideration transferred by the acquirer were as follows: • Cash amounting to P2,000,000. • Issued 10,000 ordinary shares at P10 par with a market price of P15. • Issued 5 year interest bearing bonds payable with a face value of P3,000,000 with a nominal rate of 10% and effective interest of 12%. (use two decimal places for the present value factor) Acquisition related costs incurred were as follows: • Legal fees amounting to P120,000, 70% of which is not yet paid. • Share issue costs paid amounted to P15,000. • Bond Issue costs paid amounting to P120,000. The Balance Sheet of the two entities before acquisition were as follows: A Company B Inc.Total Assets 16,500,000 5,235,000Total Liabilities 2,500,000 500,000Ordinary Shares 5,000,000 1,250,000Share premium 1,500,000 750,000Retained Earnings 6/30/22 7,500,000 2,735,000It was determined that the book value of the assets and liabilities of the…On January, 2020, P Company acquired 90% of S Company in exchange for 5,400 shares of P10 par common stock having a market value of P120,600. P and S condensed balance sheet where as follows: Requirements: Compute the following:1. Partial goodwill on Jan. 1, 20202. Non-controlling interest (in net assets) on Jan. 1, 20203. Consolidated Retained Earnings, Jan. 1, 20204. Equity Holders of Parent - Retained Earnings, Jan. 1, 20205. In addition to the information, assuming that on Dec. 31, 2020, the following results were given: Dividends Paid Net IncomeP Company P 15,000 P 30,200S Company 4,000 9,400 Using cost method to record results of operations, compute the Investment balance on Dec. 31, 20206. Dividend income for 2020 using cost method.7. Non-controlling interest in Net Income on Dec. 31, 2020.8. Non-controlling interest on Dec. 31, 2020.9. Profit for the period attributable to Equity Holders of Parent on Dec. 31, 2020.10. Consolidated/Group Net Income on Dec. 31, 2020.11.…