On January 2, 2020, the Statement of Financial Position of Arden Company and Wonder Company immediately before the combination are: Wonder Co. 90,000 180,000 630,000 Arden Co. Cash Inventories Property and equipment (net) Total Assets 2,700,000 1,800,000 4,500,000 9,000,000 900,000 Current Liabilities Ordinary Shares, P100 par Share premium Retained Earnings Total Liabilities and Stockholders' Equity 540,000 900,000 2,700,000 4,860,000 9,000,000 90,000 90,000 180,000 540,000 900,000 The fair value of Wonder Company's equipment is P918,000
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Assuming Arden Company acquired 80% of the outstanding shares of Wonder Company for P820,000 and non-controlling interest is measured at the proportionate share of Wonder Company’s identifiable net assets, how much is the consolidated
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- Jamison Corp.'s balance sheet accounts as of December 31, 2021 and 2020 and information relating to 2021 activities are presented below. December 31, 2021 2020 AssetsCash $ 440,000 $ 200,000Short-term investments 600,000 —Accounts receivable (net) 1,020,000 1,020,000Inventory 1,380,000 1,200,000Long-term investments 400,000 600,000Plant assets 3,400,000 2,000,000Accumulated depreciation (900,000)…Prepare the Pro Forma Statement of Financial Position as at 31 December 2023 from the Statement ofFinancial Position and additional information provided below:INFORMATIONThe financial position of Gatti Limited as at 31 December 2022 is reflected the following statement:Statement of Financial Position as at 31 December 2022 R ASSETSNon-current assets 1 400 000Property, plant and equipment 1 200 000Fixed deposits 200 000Current assets 5 800 000Inventories 3 400 000Accounts receivable 2 000 000Cash and cash equivalents 400 000Total assets 7 200 000 EQUITY AND LIABILITIESEquity 4 680 000Ordinary share capital 3 600 000Retained earnings 1 080 000Non-current liabilities 720 000Long-term loan 720 000Current liabilities 1 800 000Accounts payable 1 800 000Total equity and liabilities 7 200 000 Additional informationThe following must be taken into account for 2023:■ Sales are forecast at R60 000 000, with a profit margin of 10% and a gross margin of 30%. Fifty percent(50%) of the sales is…Presented below is the balance sheet of Pina Corporation for the current year, 2020. PINA CORPORATIONBALANCE SHEETDECEMBER 31, 2020 Current assets $ 486,360 Current liabilities $ 381,360 Investments 641,360 Long-term liabilities 1,001,360 Property, plant, and equipment 1,721,360 Stockholders’ equity 1,771,360 Intangible assets 305,000 $3,154,080 $3,154,080 The following information is presented. 1. The current assets section includes cash $151,360, accounts receivable $171,360 less $11,360 for allowance for doubtful accounts, inventories $181,360, and unearned rent revenue $6,360. Inventory is stated on the lower-of-FIFO-cost-or-net realizable value. 2. The investments section includes the cash surrender value of a life insurance contract $41,360; investments in common stock, short-term $81,360 and long-term $271,360; and bond sinking fund $247,280. The cost and fair value of investments in common stock are the same.…
- The following are the summarised statements of financial position of WWW Ltd, Zonko's Ltd and MoM Ltd as at 31 July 2020: www Ltd Zonko's Ltd МоM Ltd €000 €000 €000 Assets Non-current assets Property, Plant and Equipment 12,830 7,690 5,130 Investment in Zonko's 5,040 1,390 4,490 Investment in MoM Current assets 2,680 1,770 Total assets 23,750 10,370 6,900 Equity and liabilities Equity Ordinary share capital (€1) Retained earnings 10,000 5,000 4,000 7,930 3,210 1,250 Non-current liabilities 1,200 900 2,000 3,820 Current liabilities 960 750 Total equity and liabilities 23,750 10,370 6,900 The following additional notes are available: 1. www Ltd acquired three million of the ordinary shares of Zonko's Ltd on 1 October 2011 when the retained earnings of Zonko's Ltd were €1,800,000. 2. www Ltd acquired 30% of the ordinary shares of MoM Ltd on 1 March 2012 when the retained earnings of MoM Ltd were €500,000. 3. During July 2020 MoM Ltd sold goods to WWW Ltd at invoice value €60,000 on which…On 1 July 2019, ABC Ltd took control of the assets and liabilities of PQR Ltd. At this date the statement of financial position of PQR Ltd was as follows:Carrying AmountFair ValueMachinery$40 000$57 000Fixtures & fittings60 00078 000Vehicles35 00045 000Current assets10 00022 000Current liabilities(16 000)(19 000)Total net assets$129 000Share capital (80 000 shares at $1.00 per share)80 000General reserve20 000Retained earnings29 000Total equity$129 000REQUIRED:Prepare the acquisition analysis in the records of ABC Ltd at 1 July 2019 in the following situations, assuming the costs of issuing the shares by ABC Ltd cost $2600:a. ABC Ltd issued 80 000 shares having a fair value of $2.50 per share in exchange for the net assets of PQR Ltdb. ABC Ltd acquired the shares of PQR Ltd. The agreement was that ABC Ltd would pay the shareholders of PQR Ltd one share in ABC Ltd for every two shares held in PQR Ltd plus $1 in cash for each share held in PQR Ltd. Shares…The balance sheet of National Company on December 31, 2020, with related current fair value data, was as follows: National Company Balance Sheet (prior to business combination) December 31, 2020 Carrying Amounts Current Fair Values Assets Current assets $180,000 640,000 $ 220,000 700,000 Plant assets (net) Intangible assets (net) (All recognizable under generally accepted accounting principles for business combinations.) Total assets Liabilities and Stockholders' Equity Current liabilities 80,000 $900,000 90,000 $1,010,000 $ 80,000 190,000 $ 270,000 $ 80,000 200,000 $280,000 $400,000 220,000 $620,000 $900,000 Long-term debt Total liabilities Common stock, no par or stated value Retained earnings Total stockholders’ equity Total liabilities and stockholders’ equity On December 31, 2020, United Corporation issued $200,000 common stock, $2 par value ($3 fair value) and paid $188,120, for all the net assets of National. Out of pocket costs paid by united, totaled $40,000, for legal fees to…
- On January 2, 2021, the Statement of Financial Position of Parent and Subsidiary Company prior to the combination are: Parent Co. Subsidiary Co. Cash P 450,000 P 15,000 Inventories 300,000 30,000 Property and equipment (net) 750,000 105,000 Total Assets P 1,500,000 P 150,000 Current Liabilities P 90,000 P 15,000 Common Stock, P100 par 150,000 15,000 Additional Paid in Capital 450,000 30,000 Retained Earnings 810,000 90,000 Total Liabilities and Stockholders' Equity P 1,500,000 P 150,000 The fair value of Subsidiary Company's equipment is P153,000. Assuming Parent Company acquired 80% of the outstanding common stock of Subsidiary Company for P136,800 and NCI is measured at its proportionate share of subsidiary's net assets, how much is the consolidated stockholder's equity on the date of acquisition?Presented below is the balance sheet of Novak Corporation for the current year, 2020. NOVAK CORPORATIONBALANCE SHEETDECEMBER 31, 2020 Current assets $ 488,570 Current liabilities $ 383,570 Investments 643,570 Long-term liabilities 1,003,570 Property, plant, and equipment 1,723,570 Stockholders’ equity 1,773,570 Intangible assets 305,000 $3,160,710 $3,160,710 The following information is presented. 1. The current assets section includes cash $153,570, accounts receivable $173,570 less $13,570 for allowance for doubtful accounts, inventories $183,570, and unearned rent revenue $8,570. Inventory is stated on the lower-of-FIFO-cost-or-net realizable value. 2. The investments section includes the cash surrender value of a life insurance contract $43,570; investments in common stock, short-term $83,570 and long-term $273,570; and bond sinking fund $242,860. The cost and fair value of investments in common stock are the…The following information relates to the draft financial statements of Jabo, Ltd: SUMMARISED STATEMENTS OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2021 2020 К000 К000 ASSETS Non-current assets 32,600 24,100 Property, plant and equipment Financial asset: equity investments 4,500 7,000 Current assets Inventories 10,200 7,200 Trade receivables 3,500 3,700 nil 1,400 Cash and cash equivalents Total assets 50,800 43,400 EQUITY AND LIABILITIES Equity 14,000 8,000 nil Equity shares of K1 each Share premium Revaluation reserve Retained earnings 2,000 2,000 3,600 13,000 10,100 29,000 23,700 Non-current liabilities Lease liability 7,000 6,900 Deferred tax 1,300 900 Current liabilities: Tax 1,000 1,200 Bank overdraft 2,900 nil Provision for product warranties 1,600 4,000 Lease liability 4,800 2,100 Trade payables 3,200 4,600 Total equity and liabilities 50,800 SUMMARISED STATEMENTS OF PROFIT OR LOSS FOR THE YEARS ENDED 30 SEPTEMBER: 2021 2020 К000 K000 Revenue 58,500 41,000 Cost of sales (46,500)…
- only need solution 44. Pineapple Company provided the following information on December 31, 2020:• Accounts payable amounted to P500,000 and accrued expenses totaled P300,000 on Dec. 31,2020.• On Dec. 15, 2020 the entity declared a cash dividend on P7 per share on 100,000 outstandingshares, payable on Jan. 15, 2021.• On Jul. 1, 2020, the entity issued P5,000,000, 8% bonds for P4,400,000 to yield 10%. The bondmature on June 30, 2025 and pay interest annually every June 30.• The pretax financial income was P8,500,000 and taxable income was P6,000,000. The difference isdue to P1,000,000 permanent difference and P1,500,000 of taxable temporary difference toreverse in 2021• The income tax rate is 30%. The entity made estimated income tax payments during the year ofP1,000,000.What amount should be reported as total current liabilities on December 31, 2020?a) P2,300,000b) P2,500,000-answerc) P2,700,000d) P3,500,000On May 2, 2022, the separate statement of financial position of Peter Corporation and Simon Company are as follows: Peter Simon Cash 145,700 15,000 Accounts receivable 120,500 35,800 Inventories 42,500 10,200 Plant assets 185,800 78,000 Total assets 494,500 139,000 Liabilities 110,400 28,800 Capital stock, P100 par 200,000 50,000 Additional paid-in capita l 50,000 0Retained earnings 134,100 60,700 Total liabilities and equity 494,500 139,500 On May 2, 2022 Peter acquired 90% of Simon's outstanding voting shares for P108,000. Peter incurred additional P32,000 in acquisition- related costs. All the assets of Simon are fairly valued except the plant assets with a fair value of P90,000 on…“The Balance Sheets of Harrow Ltd and its subsidiary Shallow Ltd as at 31st December 2020 showed the following: Harrow Ltd Harrow Ltd Shallow Ltd Shallow Ltd £000 £000 £000 £000 FIXED ASSETS Property, plant and equipment at Net Book Value 40,800 9,600 Investment in Shallow Ltd 16,800 57,600 9,600 CURRENT ASSETS Stock 12,200 6,400 Debtors 8,900 5,300 Bank 8,900 4,690 30,000 16,390 LESS CURRENT LIABILITIES Creditors (18,000) (4,390) - NET CURRENT ASSETS 12,000 12,000 69,600 21,600 CAPITAL AND RESERVES Share Capital 50p ordinary shares 24,000 14,400 Retained earnings at 1 January 2020 25,000 1,200 Retained earnings for year 20,600 6,000 45,600 7,200 69,600 21,600 “You have been given the…