Advanced Financial Accounting
12th Edition
ISBN: 9781259916977
Author: Christensen, Theodore E., COTTRELL, David M., Budd, Cassy
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 3.21P
To determine
Introduction:Consolidated financial statements are the financial statements maintained by entity with multiple subsidiary and division.The minority interest is that portion of stock which the parent company does not hold in the subsidiary company and does not hold any controlling interest
To Prepare:The Consolidated balance sheet for company S.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
On June 1, 20x10, HEAD and ACHE decided to form a partnership contributing their
existing businesses. The following is taken form their trial balance:
HEAD
ACHE
Cash
250,000
150,000
Receivables (net)
100,000
80,000
Inventory
125,000
150,000
500,000
400,000
Fixed Assets (net)
Liabilities
250,000
250,000
The partners agreed on the following:
1.
P50,000 of HEAD'S cash represents converted foreign currencies amounting to
FC1,000 on December 31, 20x9. The current spot rate of FC1 is equivalent to
P53.
2.
The receivables of HEAD and ACHE, currently have a net realizable value of
80% it is agreed that their net realizable value must be adjusted to 75%.
3.
HEAD's inventory has a NRV of P140,000 and could be currently sold for
P200,000.
HEAD's machine was purchased last year with a 5-year life. It's estimated
current value is 90% of its cost.
5.
ACHE's fixed asset has an 80% condition percentage. If bought brand new,
its price would be P550,000.
6.
The partners are to share in profits and…
On March 1, 20x4, CC and FF formed a partnership with each contributing the following assets:
CC
FF
Cash...
P 30,000 P70,000
Machinery.
25,000
75,000
Building..
225,000
*******
Furniture and fixtures...
10,000
The building is subject to a mortgage loan of P90,000, which is to be assumed by the partnership
agreement provides that CC and FF share profits and losses 30 percent and 70 percent, respectively.
On March 1, 20x4, the capital account of FF would showa balance of:
On June 1, 20x10, HEAD and ACHE decided to form a partnership contributing their
existing businesses. The following is taken form their trial balance:
HEAD
ACHE
Cash
150,000
250,000
100,000
Receivables (net)
80,000
Inventory
125,000
150,000
500,000
400,000
Fixed Assets (net)
Liabilities
250,000
250,000
The partners agreed on the following:
1.
P50,000 of HEAD'S cash represents converted foreign currencies amounting to
FC1, 000 on December 31, 20x9. The current spot rate of FC1 is equivalent to
P53.
2.
The receivables of HEAD and ACHE, currently have a net realizable value of
80% it is agreed that their net realizable value must be adjusted to 75%.
HEAD's inventory has a NRV of P140,000 and could be currently sold for
P200,000.
3.
life. It's estimated
HEAD's machine was purchased last year with a 5-year
current value is 90% of its cost.
5.
ACHE's fixed asset has an 80% condition percentage. If bought brand new,
its price would be P550,000.
6.
The partners are to share in profits and…
Chapter 3 Solutions
Advanced Financial Accounting
Ch. 3 - What is the basic idea underlying the preparation...Ch. 3 - How might consolidated statements help an investor...Ch. 3 - Prob. 3.3QCh. 3 - Prob. 3.4QCh. 3 - Prob. 3.5QCh. 3 - Prob. 3.6QCh. 3 - Prob. 3.7QCh. 3 - Prob. 3.8QCh. 3 - Prob. 3.9QCh. 3 - Prob. 3.10Q
Ch. 3 - Prob. 3.11QCh. 3 - Prob. 3.12QCh. 3 - What is meant by indirect control? Give an...Ch. 3 - Prob. 3.14QCh. 3 - Prob. 3.15QCh. 3 - Prob. 3.16QCh. 3 - Prob. 3.17QCh. 3 - Prob. 3.18QCh. 3 - Prob. 3.1CCh. 3 - Prob. 3.2CCh. 3 - Prob. 3.1.1ECh. 3 - Prob. 3.1.2ECh. 3 - Prob. 3.1.3ECh. 3 - Prob. 3.1.4ECh. 3 - Multiple-Choice Question on Variable Interest...Ch. 3 - Multiple-Choice Question on Variable Interest...Ch. 3 - Prob. 3.2.3ECh. 3 - Prob. 3.2.4ECh. 3 - Prob. 3.3.1ECh. 3 - Prob. 3.3.2ECh. 3 - Prob. 3.3.3ECh. 3 - Prob. 3.4.1ECh. 3 - Prob. 3.4.2ECh. 3 - Prob. 3.4.3ECh. 3 - Prob. 3.4.4ECh. 3 - Balance Sheet Consolidation On January 1, 20X3,...Ch. 3 - Prob. 3.6ECh. 3 - Prob. 3.7ECh. 3 - Prob. 3.8ECh. 3 - Prob. 3.9ECh. 3 - Reporting for a Variable Interest Entity Gamble...Ch. 3 - Prob. 3.11ECh. 3 - Prob. 3.12ECh. 3 - Prob. 3.13ECh. 3 - Prob. 3.14ECh. 3 - Prob. 3.15ECh. 3 - Prob. 3.16ECh. 3 - Prob. 3.17ECh. 3 - Prob. 3.18ECh. 3 - Prob. 3.19.1PCh. 3 - Prob. 3.19.2PCh. 3 - Prob. 3.20PCh. 3 - Prob. 3.21PCh. 3 - Prob. 3.22PCh. 3 - Prob. 3.23PCh. 3 - Prob. 3.24PCh. 3 - Prob. 3.25PCh. 3 - Prob. 3.26PCh. 3 - Prob. 3.27PCh. 3 - Prob. 3.28PCh. 3 - Prob. 3.29PCh. 3 - Consolidated Worksheet at End of the First Year of...Ch. 3 - Prob. 3.31P
Knowledge Booster
Similar questions
- The Taurin Partnership (a calendar-year-end entity) has the following assets as of December 31 of the current year: Таx Basis FMV $ 49,800 16,600 $ 49,800 33,200 128,400 $ 211,400 Cash Accounts receivable Inventory 87,000 Totals $ 153,400 On December 31, Taurin distributes $16,600 of cash, $11,067 (FMV) of accounts receivable, and $42,800 (FMV) of inventory to Emma (a one-third partner) in termination of her partnership interest. Emma's basis in her partnership interest immediately prior to the distribution is $43,533. c1. If Emma's basis before the distribution was $60,033 rather than $43,533, what is Emma's recognized gain or loss? c2. What is her basis in the distributed assets? Complete this question by entering your answers in the tabs below. Req C1 Req C2 What is her basis in the distributed assets? (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Basis Cash Accounts receivable Inventoryarrow_forwardOn June 1, 20x10, HEAD and ACHE decided to form a partnership contributing their existing businesses. The following is taken form their trial balance: HEAD ACHE Cash 250,000 150,000 100,000 80,000 Receivables (net) Inventory 125,000 150,000 500,000 400,000 Fixed Assets (net) Liabilities 250,000 250,000 The partners agreed on the following: 1. P50,000 of HEAD'S cash represents converted foreign currencies amounting to FC1,000 on December 31, 20x9. The current spot rate of FC1 is equivalent to P53. 2. The receivables of HEAD and ACHE, currently have a net realizable value of 80% it is agreed that their net realizable value must be adjusted to 75%. HEAD's inventory has a NRV of P140,000 and could be currently sold for P200,000. 3. HEAD's machine was purchased last year with a 5-year life. It's estimated current value is 90% of its cost. 5. ACHE's fixed asset has an 80% condition percentage. If bought brand new, its price would be P550,000. 6. The partners are to share in profits and…arrow_forwardThe Taurin Partnership (a calendar-year-end entity) has the following assets as of December 31 of the current year: Таx Basis $ 49,800 16,600 FMV $ 49,800 33,200 128,400 $ 211,400 Cash Accounts receivable Inventory 87,000 Totals $ 153,400 On December 31, Taurin distributes $16,600 of cash, $11,067 (FMV) of accounts receivable, and $42,800 (FMV) of inventory to Emma (a one-third partner) in termination of her partnership interest. Emma's basis in her partnership interest immediately prior to the distribution is $43,533. b. What is Emma's basis in the distributed assets? (Round your intermediate and final answers to the nearest whole dollar amount.) Basis Cash Accounts receivable Inventoryarrow_forward
- Part A Ebanks, Brown, and Thomas are partners. They carry on a business jointly as EBT surveyors and share profits and losses in the ratio of 25:45: 30. The trading account profit as at 31 December 2021 was $6,500,000 after charging a nominal tax of $750,000. Notes: 1. The partners receive interest on their capital accounts at 9.5 % on the balance of their partner capital at the end of the budget year. The interest on the capital account was not included in the income statement. 2. Include in the income statement is $80,000 salary per month for each partner. 3. The partnership paid motor vehicle expenses for vehicles owned by the partners as follows: - Ebanks -$ 50,000 - Brown - $80,000 - Thomas - $130,000 The partners did not use the vehicles for the partnership business. 4. Profit on disposal was $180,000. 5. Depreciation on plant and machinery for the year was $900,000. 6. In recognition of the new IFRS 9 standard, a provision for bad debt of $75,000 was…arrow_forwardA and S are partners sharing profit and loss in the ratio of 3:1. Their Statement of Financial Position(Balance Sheet) stood as at 31.12.2020 as follows: A and S Partnership Statement of Financial Position(Balance Sheet) As at 31st December 2020 ASSETS Current Assets Kshs' Kshs' Cash and Cash Equivalent 26,000 Investments 24,000 Prepaid Insurance Debtors 26,000 Less Provision for Doubtful Debts 26,000 Inventories(stock) 40,000 Total Current Assets 116,000 Non Current Assets Machinery Less:Accumulated Depreciation 10,000 10,000 Buildings 60,000 Less:Accumulated Depreciation - 60,000 Furniture 30,000 Less:Accumulated Depreciation -…arrow_forwardProblem 1: On January 1, 20x1, Rody and Noy formed a partnership. Rody and Noy contributed the following assets at formation: Rody Noy Cash 25,000 37,500 Inventory 18,750 Building 50,000 Equipment 18,750 The building is subject to a P12,500 mortgage, which was assumed by the partnership. They share profit and loss in the ratio of 60:40. Assuming Rody will invest (withdraw) cash so that his capital balance will equal to his profit and loss ratio, what is the total asset of the partnership after formation? (The correct answer is 246,875 but I need a solution/explanation)arrow_forward
- PARTNERSHIP OPERATION FOR NUMBERS 5-7 On January 01, 2021, DEAN, POGI and GUAPO formed DPG Partnership with total agreed capitalization of P1,000,000. The capital interest ratio of the DPG Partnership is 5:1:4 while the profit or loss ration is 3:2:5, respectively for DEAN, POGI and GUAPO. During 2021, DEAN and POGI made additional investments of P200,000 and P500,000, respectively. At the end of 2021, POGI and GUAPO made drawings of P300,000 and P100,000, respectively. On December 31, 2021, the capital balance of POGI is reported at P200,000. 5. What is the net income or net loss of DPG Partnership for the year ended December 31, 2021? 6. What is the capital balance of DEAN on December 31, 2021? 7. What is the capital balance of GUAPO on December 31, 2021?arrow_forward10. On October 1, A and B pooled their assets to form a Partnership, with the firm to take over the business assets and assume liabilities. Partners capitals are to be based on net assets transferred after the following adjustments. The partners agreed to the following adjustments: A’s inventory is to be increased by P15,000, while B’s inventory has a current fair market value of P100,000 and an agreed value of P110,000. B’s unadjusted inventory amounted to P90,000. Machinery and equipment are over-depreciated by P5,000 and P8,000 for A and B, respectively. Furnitures and fixtures for partner A has a current fair market value of P60,000 and an agreed value of P50,000. Furnitures and fixtures is carried at its cost amounting to P100,000 with accumulated depreciation of P45,000. Accrued rent income of P10,000 for A, and accrued salaries of P5,000 for B should be recognized on their respective books. The individual trial balances on October 1, before adjustments, follow: DESCRIPTION…arrow_forward9. On October 1, A and B pooled their assets to form a Partnership, with the firm to take over the business assets and assume liabilities. Partners capitals are to be based on net assets transferred after the following adjustments: The partners agreed to the following adjustments: a. A's inventory is to be increased by P15,000, while B's inventory has a current fair market value of P100,000 and an agreed value of P110,000. B's unadjusted inventory amounted to P90,000. b. Machinery and equipment are over-depreciated by P5,000 and P8,000 for A and B, respectively. c. Furnitures and fixtures for partner A has a current fair market value of P60,000 and an agreed value P50,000. Furnitures and fixtures is carried at its cost amounting to P100,000 with accumulated depreciation of P45,000. d. Accrued rent income of P10,000 for A, and accrued salaries of P5,000 for B should be recognized on their respective books. The individual trial balances on October 1, before adjustments, follow:…arrow_forward
- Partners Kitty and Puppy, who share equally in profits and losses, have the following balance sheet as of December 31 of the current year.Cash 120,000 Payables 172,000Receivables 100,000 Accum Dept’n. 8,000Inventory 140,000 Kitty, Capital 140,000PPE 80,000 Puppy, Capital 120,000Total 440,000 Total 440,000 They agreed to incorporate their partnership, with the new corporation absorbing the net assets after the following adjustments: provision of allowance for bad debts of P10,000; restatement of the inventory atits current fair value of P160,000; and, recognition of further depreciation on equipment of P3,000. The corporation’s capital stock is to have a par value of P100, and the partners are to be issued corresponding total shares equivalent to their adjusted capital balances.…arrow_forwardAA and BB entered into partnership on March 1, 2022 by investing the following assets: AA BB Cash P 30,000 Inventory P 90,000 Equipment 160,000 Furniture 200,000 The agreement between AA and BB provides that profits and losses are to be divided 40% and 60%, respectively, and that the partnership is to assume liability on the equipment of P60,000. The partners further agree that BB is to receive a capital credit equal to his profit and loss ratio. How much is the cash to be invested by BB?arrow_forwardPart AEbanks, Brown, and Thomas are partners. They carry on a business jointly as EBT surveyors and shareprofits and losses in the ratio 25:45: 30.The trading account profit as at 31 December 2021 was $6,500,000 after charging a nominal tax of$750,000.Notes:1. The partners receive interest on their capital accounts at 9.5 % on the balance of their partnercapital at the end of the budget year. The interest on the capital account was not included in theincome statement.2. Include in the income statement is $80,000 salary per month for each partner.3. The partnership paid motor vehicle expenses for vehicles owned by the partners as follows:- Ebanks -$ 50,000- Brown - $80,000- Thomas - $130,000 The partners did not use the vehicles for the partnership business.4. Profit on disposal was $180,000.5. Depreciation on plant and machinery for the year was $900,000.6. In recognition of the new IFRS 9 standard, a provision for bad debt of $75,000 was made. Thisrepresents a % of the business year…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
