Problem 2 Numbers 1-10. Please provide a solution and explanation. Thank you.

of 1. On January 1, 20x1, Bright Co. acquired 75% interest in Dull financial statements are pre accounting concept of: a. Reliability c. Legal entity. b. Materiality. d. Economic entity (Adapted) PROBLEM 2: FOR CLASSROOM DISCUSSION Co. for P180,000. On this date, the carrying amount of Dull's net identifiable assets was P160,000, equal to fair value. Non controlling interest was measured at a fair value of P60,000. The financial statements of the entities on December 31, 20x1 show the following information: Bright Co. Dull Co. ASSETS Investment in subsidiary (at cost) 180,000 Other assets 600,000 235,000 TOTAL ASSETS 780,000 235,000 LIABILITIES AND EQUITY Liabilities Share capital Retained earnings Total equity TOTAL LIABILITIES AND EQUITY 70,000 600,000 110,000 710,000 780,000 25,000 100,000 110,000 210,000 235,000 Consolidated Financial Statements (Part 3) 6 311 former hts and Revenues Bright Co. 300,000 (60,000) 240,000 Dull Co. 80,000 (30,000) 50,000 Operating expenses Profit for the year idated of the Additional information: No dividends were declared by either entity during 20xl and there were no inter-company transactions. . However, it was determined by year-end that goodwill was impaired by P10,000. Requirement: Prepare a draft of the December 31, 20x1 consolidated statements of financial position and consolidated statement of profit or loss. Dull Dull's Non- 20. 20x1 Use the following information for the next five questions: Rubber Co. owns 75% interest in Plastic, Inc. The statements of financial position of the entities on January 1, 20x1 are shown below: Rubber Plastic, Co. Inc. Consolidated Investment in subsidiary 112,500 Other assets 514,500 186,000 709,500 Goodwill 12,000 TOTAL ASSETS 627,000 186,000 721,500 Co. 00 00 Accounts payable 109,500 45,000 154,500 Share capital Retained earnings 75,000 66,000 10 30 10 70 70 352,500 165,000 Equity attributable to owners of parent Non-controlling interest 517,500 352,500 177,000 529,500 37,500 567,000 Total equity 141,000 TOTAL LIABILITIES & EQUITY 627,000 186,000 721,500 313 Or ed a. 25,500 b. 37,500 c. 48,500 d. 137,500 Cinsolidated Financial Statements (Part 3) control. The remaining interest is classified as held for trading. How much is the gain or loss on the sale? TOTAL LIABILITIES AND EQUITY Sperating expenses PROBLEM 3: EXERCISE 1. On January 1, 20x1, Day Co. acquired 75% interest in Night ed Co. for P216,000. On this date, the carrying amount of Night's on- net identifiable assets was P192,000, equal to fair value. Non- he controlling interest was measured at a fair value of P72,000. cer The financial statements of the entities on December 31, 20x1 show the following information: Day Co. Night Co. ASSETS Investment in subsidiary (at cost) 216,000 720,000 282,000 936,000 282,000 LIABILITIES AND EQUITY 84,000 30,000 720,000 120,000 132,000 132,000 learnings 852,000 252,000 936,000 282,000 Day Co. 360,000 (72,000) 288,000 year % ed n- he er Other assets TOTAL ASSETS Liabilities Share capital Retained Total equity % ed is ze Revenges Night Co. 96,000 (36,000) 60,000 Profit for the gain conti How a. 2 b. 3: PROBLE 1. On Ja Co. fc net id contro 2. On January 1, 20x2, Rubber Co. acquired the remaining 25% interest in Plastic Inc. for P80,000. How much is the loss on the acquisition to be recognized in the consolidated interest for P100,000. Non-controlling interests were measured consolidated retained earnings immediately after the 6. On January 1, 20x2, Rubber Co. sold 60% out of its 75% interest in Plastic Inc. for P120,000. The sale resulted to loss of financial statements? a. 42,500 c. (17,500) b. (42,500) d. o 3. On January 1, 20x2, Rubber Co, acquired the remaining 23% interest for P100,000. Non-controlling interests were measured using the proportionate share method. How much is non controlling interest in the net assets of the acquiree in the consolidated financial statements prepared immediately after the acquisition? a. 42,500 c. 25,000 b. 37,500 d. o 4. On January 1, 20x2, Rubber Co. acquired additional 20% interest for P100,000. Non-controlling interests were measured using the proportionate share method. How much is non- controlling interest in the net assets of the acquiree in the consolidated financial statements prepared immediately after the acquisition? a. 37,500 c. 7,500 b. 30,000 d.o 5. On January 1, 20x2, Rubber Co. acquired additional 20% using the proportionate share method. How much is The fi show ASSETS Investmer Other asse TOTAL AS LIABILITI Liabilities Share capi Retained e Total equity TOTAL LI acquisition? a. 70,000 b. 107,000 Revenues Operating Profit for c. 130,000 d. 137,500 Additional No di Ther of 1. On January 1, 20x1, Bright Co. acquired 75% interest in Dull financial statements are pre accounting concept of: a. Reliability c. Legal entity. b. Materiality. d. Economic entity (Adapted) PROBLEM 2: FOR CLASSROOM DISCUSSION Co. for P180,000. On this date, the carrying amount of Dull's net identifiable assets was P160,000, equal to fair value. Non controlling interest was measured at a fair value of P60,000. The financial statements of the entities on December 31, 20x1 show the following information: Bright Co. Dull Co. ASSETS Investment in subsidiary (at cost) 180,000 Other assets 600,000 235,000 TOTAL ASSETS 780,000 235,000 LIABILITIES AND EQUITY Liabilities Share capital Retained earnings Total equity TOTAL LIABILITIES AND EQUITY 70,000 600,000 110,000 710,000 780,000 25,000 100,000 110,000 210,000 235,000 Consolidated Financial Statements (Part 3) 6 311 former hts and Revenues Bright Co. 300,000 (60,000) 240,000 Dull Co. 80,000 (30,000) 50,000 Operating expenses Profit for the year idated of the Additional information: No dividends were declared by either entity during 20xl and there were no inter-company transactions. . However, it was determined by year-end that goodwill was impaired by P10,000. Requirement: Prepare a draft of the December 31, 20x1 consolidated statements of financial position and consolidated statement of profit or loss. Dull Dull's Non- 20. 20x1 Use the following information for the next five questions: Rubber Co. owns 75% interest in Plastic, Inc. The statements of financial position of the entities on January 1, 20x1 are shown below: Rubber Plastic, Co. Inc. Consolidated Investment in subsidiary 112,500 Other assets 514,500 186,000 709,500 Goodwill 12,000 TOTAL ASSETS 627,000 186,000 721,500 Co. 00 00 Accounts payable 109,500 45,000 154,500 Share capital Retained earnings 75,000 66,000 10 30 10 70 70 352,500 165,000 Equity attributable to owners of parent Non-controlling interest 517,500 352,500 177,000 529,500 37,500 567,000 Total equity 141,000 TOTAL LIABILITIES & EQUITY 627,000 186,000 721,500 313 Or ed a. 25,500 b. 37,500 c. 48,500 d. 137,500 Cinsolidated Financial Statements (Part 3) control. The remaining interest is classified as held for trading. How much is the gain or loss on the sale? TOTAL LIABILITIES AND EQUITY Sperating expenses PROBLEM 3: EXERCISE 1. On January 1, 20x1, Day Co. acquired 75% interest in Night ed Co. for P216,000. On this date, the carrying amount of Night's on- net identifiable assets was P192,000, equal to fair value. Non- he controlling interest was measured at a fair value of P72,000. cer The financial statements of the entities on December 31, 20x1 show the following information: Day Co. Night Co. ASSETS Investment in subsidiary (at cost) 216,000 720,000 282,000 936,000 282,000 LIABILITIES AND EQUITY 84,000 30,000 720,000 120,000 132,000 132,000 learnings 852,000 252,000 936,000 282,000 Day Co. 360,000 (72,000) 288,000 year % ed n- he er Other assets TOTAL ASSETS Liabilities Share capital Retained Total equity % ed is ze Revenges Night Co. 96,000 (36,000) 60,000 Profit for the gain conti How a. 2 b. 3: PROBLE 1. On Ja Co. fc net id contro 2. On January 1, 20x2, Rubber Co. acquired the remaining 25% interest in Plastic Inc. for P80,000. How much is the loss on the acquisition to be recognized in the consolidated interest for P100,000. Non-controlling interests were measured consolidated retained earnings immediately after the 6. On January 1, 20x2, Rubber Co. sold 60% out of its 75% interest in Plastic Inc. for P120,000. The sale resulted to loss of financial statements? a. 42,500 c. (17,500) b. (42,500) d. o 3. On January 1, 20x2, Rubber Co, acquired the remaining 23% interest for P100,000. Non-controlling interests were measured using the proportionate share method. How much is non controlling interest in the net assets of the acquiree in the consolidated financial statements prepared immediately after the acquisition? a. 42,500 c. 25,000 b. 37,500 d. o 4. On January 1, 20x2, Rubber Co. acquired additional 20% interest for P100,000. Non-controlling interests were measured using the proportionate share method. How much is non- controlling interest in the net assets of the acquiree in the consolidated financial statements prepared immediately after the acquisition? a. 37,500 c. 7,500 b. 30,000 d.o 5. On January 1, 20x2, Rubber Co. acquired additional 20% using the proportionate share method. How much is The fi show ASSETS Investmer Other asse TOTAL AS LIABILITI Liabilities Share capi Retained e Total equity TOTAL LI acquisition? a. 70,000 b. 107,000 Revenues Operating Profit for c. 130,000 d. 137,500 Additional No di Ther