Pop Corporation (PC) purchased 75% of the voting stock of Samantha Company (SC) on January 1, 20X1 for P225,000. The non-controlling interest (NCI) is measured on a fair-value basis, and the carrying and fair value of SC’s identifiable net assets are equal. Given below are the trial balances of the companies as of December 31, 20X1.

 

Required: Prepare the set of consolidated financial statements at the end of the year. Follow the process given in the handout.

 

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Samantha Company Pop Corporation Debit Credit Debit Credit Cash 100,000 110,000 Accounts Receivable Inventory Property, Plant, and Equipment (net) 300,000 Investment in Samantha Company Cost of Goods Sold Operating Expenses Other Expenses Dividend Declared 80,000 150,000 20,000 105,000 125,000 225,000 325,000 120,000 200,000 120,000 20,000 14,000 50,000 40,000 400,000 94,000 Sales 725,000 Accounts Payable Bonds Payable Common Stock Retained Earnings Dividend Income Total 200,000 104,500 250,000 100,000 10,500 1,390,000 1,390,000 20,000 125,000 75,000 714,000 714,000 Samantha Company Pop Corporation Debit Credit Debit Credit Cash 100,000 110,000 Accounts Receivable Inventory Property, Plant, and Equipment (net) 300,000 Investment in Samantha Company Cost of Goods Sold Operating Expenses Other Expenses Dividend Declared 80,000 150,000 20,000 105,000 125,000 225,000 325,000 120,000 200,000 120,000 20,000 14,000 50,000 40,000 400,000 94,000 Sales 725,000 Accounts Payable Bonds Payable Common Stock Retained Earnings Dividend Income Total 200,000 104,500 250,000 100,000 10,500 1,390,000 1,390,000 20,000 125,000 75,000 714,000 714,000