80 To Retained earnings P1356 E5 Dividend income P 38400 Non controlling

80 to retained earnings p1356 e5 dividend income p

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80 % To Retained earnings P13,56 0 (E5) Dividend income - P………. 38,400 Non-controlling interest (P48,000 x 20%) ……………….. 9,600 Dividends paid – S…………………… 48,000 To eliminate intercompany dividends and non-controlling interest
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share of dividends. (E6) Non-controlling interest in Net Income of Subsidiary………… 16,560 Non-controlling interest ………….. 16,560 Net income of subsidiary…………………… .. P 90,00 0 Amortization of allocated excess [(E4)]…... ( 7, 200) P 82,80 0 Multiplied by: Non- controlling interest % .......... 20% P 16,56 0 Less: NCI on goodwill impairment loss on full- Goodwill 0 Non-controlling Interest in Net Income (NCINI) P 16,56 0 Worksheet for Consolidated Financial Statements, December 31, 20x5. Cost Model (Full-goodwill) 80%-Owned Subsidiary December 31, 20x5 (Second Year after Acquisition) Income Statement P Co S Co. Dr. Cr. Consolidate d Sales P540,00 0 P360,00 0 P 900,000 Dividend income 38,40 0 - (5) 38,400 _________ __
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Total Revenue P578,40 0 P360,00 0 P 900,000 Cost of goods sold P216,00 0 P192,00 0 P 408,000 Depreciatio n expense 60,000 24,000 (4) 6,000 90,000 Interest expense - - (4) 1,200 1,200 Other expenses 72,000 54,000 126,000 Goodwill impairment loss - - - Total Cost and Expenses P348,00 0 P270,00 0 P 625,200 Net Income P230,40 0 P 90,000 P 274,800 NCI in Net Income - Subsidiary - - (6) 16,560 ( 16,560) Net Income to Retained Earnings P230,40 0 P 90,000 P 258,240 Statement of Retained Earnings Retained earnings, 1/1 P Company P484,80 0 (3)13,56 0 (5)19,200 P 490,440 S Company P 144,000 (6) 144,00 0
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Net income, from above 230,400 90,000 258,240 Total P715,20 0 P234,00 0 P 748,680 Dividends paid P Company 72,000 72,000 S Company - 48,00 0 (5) 57,600 _ ________ Retained earnings, 12/31 to Balance Sheet P643,20 0 P186,00 0 P 676,680 Balance Sheet Cash………………… ……. P 265,20 0 P 102,00 0 P 367,200 Accounts receivable…….. 180,00 0 96,000 276,000 Inventory…………… ……. 216,00 0 108,00 0 (3) 6,000 (4) 6,000 324,000 Land………………… …………. 210,00 0 48,000 (3) 7,200 265,200 Equipment 240,00 0 180,00 0 420,000 Buildings 720,00 0 540,00 0 (3) 216,00 0 1,044,00 0 Discount on bonds payable (3) 4,800 (4) 2,400 2,400 Goodwill…………… (3) (4) 11,250
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……… 15,000 3,750 Investment in S Co……… 372,0 00 (1) 19,200 (2) 307,20 0 (7)84,0 00 - Total P2,203, 200 P1,074, 000 P2,710, 050 Accumulated depreciation - equipment P 150,00 0 P 102,00 0 (3) 96,000 (4) 24,000 P180,00 0 Accumulated depreciation - buildings 450,00 0 306,00 0 (3) 192,000 (4) 12,000 552,000 Accounts payable…………… 120,0 00 120,0 00 240,000 Bonds payable…………… …… 240,00 0 120,00 0 360,000 Common stock, P10 par……… 600,00 0 600,000 Common stock, P10 par……… 240,00 0 (2) 240,000 Retained earnings, from above 643,20 0 186,00 0 676,680 Non-controlling interest………… ___ _____ ___ _____ _ (6) 9,600 (8) 3,390 _______ ___ (2 ) 76,800 (3) 21,000 (6) 16,560 ____10 1,370 Total P2,203, 200 P1,074, 000 P 824,910 P 824,9 10 P2,710, 050
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5. 1/1/20x4 a. On date of acquisition the retained earnings of parent should always be considered as the consolidated retained earnings, thus: Consolidated Retained Earnings, January 1, 20x4 Retained earnings - P Company, January 1, 20x4 (date of acquisition) P360,00 0 b. Non-controlling interest (full-goodwill), January 1, 20x4 Common stock – S Company, January 1, 20x4…… P 240,000 Retained earnings – S Company, January 1, 20x4 120,000 Stockholders’ equity – S Company, January 1, 20x4 P 360,000 Adjustments to reflect fair value - (over) undervaluation of assets and liabilities, date of acquisition (January 1, 20x4) 90,000 Fair value of stockholders’ equity of S, January 1, 20x4…… P450,00 0 Multiplied by: Non-controlling Interest percentage…………...
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