28800 Record dividends from S Company x4 3 Investment in S

28800 record dividends from s company x4 3 investment

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28,800 Record dividends from S Company. December 31, 20x4:
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(3) Investment in S Company 48,000 Investment income (P60,000 x 80%) 48,000 Record share in net income of subsidiary. December 31, 20x4: (4) Investment income [(P13,200 x 80%) + (P3,750 – P750)*, goodwill impairment loss)] 13,560 Investment in S Company 13,560 Record amortization of allocated excess of inventory, equipment, buildings and bonds payable and goodwill impairment loss. Thus, the investment balance and investment income in the books of P Company is as follows: Consolidation Workpaper – First Year after Acquisition The schedule of determination and allocation of excess presented above provides complete guidance for the worksheet eliminating entries on January 1, 20x4: (E1) Common stock S Co………………………………………… 240,000 Retained earnings – S Co…………………………………… 120.000 Investment in S Co…………………………………………… 288,000 Investment in S Cost, 1/1/x4 372,000 28,800 Dividends – S (36,000x 80%) NI of S Amortization & (60,000 x 80%) 48,000 13,560 Impairment Balance, 12/31/x4 377,640 Investment Income Amortization & NI of S Impairment 13,560 48,000 (P60,000 x 80%) 34,440 Balance, 12/31/x4
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Non-controlling interest (P360,000 x 20%)……………………….. 72,000 (E2) Inventory……………………………………… …………………………. 6,000 Accumulated depreciation – equipment……………….. 96,000 Accumulated depreciation – buildings………………….. 192,000 Land……………………………………… ………………………………. 7,200 Discount on bonds payable…………………………………………. 4,800 Goodwill………………………………… ………………………………. 15,000 Buildings……………………………… ……….. 216,000 Non-controlling interest (P90,000 x 20%) + [(P15,000, full – P12,000, partial goodwill)] ………… 21,000 Investment in S Co……………………………………………… . 84,000 (E3) Cost of Goods Sold……………. 6,000 Depreciation expense……………………….. 6,000 Accumulated depreciation – buildings………………….. 6,000 Interest expense………………………………… 1,200 Goodwill impairment loss………………………………………. 3,750 Inventory……………………………… ………………………….. 6,000 Accumulated depreciation – 12,000
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equipment……………….. Discount on bonds payable………………………… 1,200 Goodwill……………………………… …… 3,750 Cost of Goo ds Sold Deprecia tion/ Amortiz ation Expense Amorti zation - Interest Tot al Inventory sold P 6,00 0 Equipme nt P 12,000 Buildings ( 6,000) Bonds payable ____ ___ _______ P 1,200 Totals P 6,00 0 P 6,000 P1,200 13, 200 (E4) Investment income 37,440 Non-controlling interest (P36,000 x 20%) ……………….. 7,200 Dividends paid – S…………………… 36,000 Investment in S Company 8,640 Investment in S Investment Income NI of S 28,800 Dividends – S NI of Son (60,000 x 80%) …….
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