The January 1, 2011 statement of financial position of Skittle Company at book and market values is
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Question:
The January 1, 2011 statement of financial position of Skittle Company at book and market values is as follows:
Book Value | Fair Value | ||
Current Assets | P 800,000 | P 750,000 | |
Property and Equipment (net) | 900,000 | 1, 000,000 | |
Total Assets | P 1,700,000 | P1,750,000 | |
Current Liabilities | P 300,000 | P 300,000 | |
Long-term Liabilities | 500,000 | 460,000 | |
Ordinary Share Capital, P1 par | 100,000 | ||
Share Premium | 200,000 | ||
Accumulated Profits | 600,000 | ||
Total Liabilities and Shareholders’ equity | P1,700,000 |
Polypeptide Company paid P950,000 in cash for 90% of Skittle Company’s ordinary share capital.
Required:
- Prepare a journal entry on Polypeptide’s books to record the acquisition of the Skittles share.
- Prepare a schedule of the allocation of the difference between the consideration given and the book value of interest acquired from Skittle Company.
- Prepare the elimination entries for the consolidated statements worksheet.
Expert Answer:
Answer A In the books of foto peptide Jornal Entry Account Title and Explanation Debi... View the full answer
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