CHAPTER 17 - CHAPTER 17 MULTIPLE CHOICES COMPUTATIONAL 17-1...

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90 CHAPTER 17 MULTIPLE CHOICES - COMPUTATIONAL 17-1: b Consolidated sales Sales – Papa P 900,000 Sales – San 500,000 Elimination of inter-company sales ( 50,000 ) Consolidated sales P 1,350,000 Consolidated cost of goods sold Cost of goods sold – Papa P 490,000 Cost of goods sold – San 190,000 Eliminations: Realized profit in beginning inventory ( 4,000) Unrealized profit in ending inventory 10,000 Intercompany purchases ( 50,000 ) Consolidated cost of goods sold P 636,000 17-2: c Net income – Sisa P 60,000 Unrealized profit in ending inventory – upstream ( 10,000 ) Adjusted net income – Sisa P 50,000 NCI proportionate share 20% NCI in net income of subsidiary P 10,000 17-3: d Net income from own operation – Pat P 200,000 Adjusted net income of Susan: Net income – Susan P200,000 Realized profit in beginning inventory (P112,000 x 50%/150%) 37,500 Unrealized profit in ending inventory (P33,000 x 50%/150%) (11,000 ) 226,500 Consolidated net income P 426,500 Attributable to NCI (P226,500 x 30%) 67,950 Attributable to parent P 358,550 17-4: b Net income from own operations- Patton P 300,000 Unrealized profit in ending inventory – DS (P200,000 x .25) (50,000) Adjusted net income for own operations – Patton 250,000 Solis net loss from own operations (150,000) Consolidated net income P 100,000
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91 17-5: d Pardo’s share of Santos’ net income (P300,000 x 75%) P 225,000 Unrealized profit in ending inventory – Upstream (P200,000 x 25%/125%) x 75% ( 30,000) Realized profit in beginning inventory – Upstream (P150,000 x 25%/125%) x 75% 22,500 Investment income account balance, Dec. 31, 2011 P 217,500 17-6: d Net income from own operation – Puzon P 200,000 Suazon’s adjusted net income from own operations: Net income P110,000 Unrealized profit in ending inventory- Upstream (P25,000 x 40%) ( 10,000) 100,000 Consolidated net income P 300,000 Attributable to NCI (P100,000 x 25%) (25.000 ) Attributable to parent P 275,000 17-7: b 2010 2011 Net income from own operation – Pat P 500,000 P 550,000 Unrealized profit in ending inventory: 2010 (P20,000 x .40) (8,000) 2011 (P30,000 x .50) (15,000) Realized profit in beginning inventory 8,000 Realized income 492,000 543,000 Sun net income 200,000 225,000 Consolidated net income P 692,000 P 768,000 17-8: a Net income from own operation – Pip P 400,000 Adjusted net income from own operation - Sol Net income P 250,000 Realized profit in beginning inventory- Upstream (P40,000 x 40%) 16,000 Unrealized profit in ending inventory- Upstream (P70,000 x 30%) ( 21,000 ) 245,000 Consolidated net income - 2011 P 645,000
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92 17-9: a Net income from own operations – Popo P 500,000 Unrealized profit in ending inventory – Downstream ( 15,000 ) Realized net income from own operation – Popo P 485,000 Adjusted net income from own operations - Sotto Net income P 360,000 Realized profit in beginning inventory- Upstream 10,000 370,000 Consolidated net income P 855,000 Attributable to NCI (P370,000 x 5%) 18,500 Attributable to parent P 836,500 17-10: d, should be P(19,200). Net income – Sand Company P200,000 Realized profit in beg. Inventory (P120,000 x .20) 24,000 Unrealized profit in ending inventory (P360,000 x .20) (72,000) Amortization of allocated excess P1.000,000 / 5) (200,000) Adjusted net loss – Sand Company P(48,000) NCI (P48,000 x 40%) P(19,200) 17-11: d Gross profit rate – Short (P110,000 / P200,000) 55% Inventories Inventory from outsiders – Power P 5,000 Inventory from outsiders – Short 25,000 Power’s inventory acquired from Short – at cost: [P5,000 – (P5,000 x 55%)} 2,250 Consolidated ending inventories P 32,250 Investment income Power’s share of Short’s net income (P50,000 x 75%) P 37,500
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  • Spring '15
  • Revenue, Net Income, NCI, Generally Accepted Accounting Principles

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