The following are selected account balances from Cheela Company and Jarjar Corporation as of December 31, 2018:

	Cheela	Jarjar
Revenues	P    980,000	P    560,000
Expenses	560,000	420,000
Dividend Income	84,000
Dividends Paid	112,000	84,000
Accumulated profits, 1/1/18	840,000	280,000
Current Assets	560,000	700,000
Building (net)	1,260,000	560,000
Equipment (net)	840,000	1,400,000
Investment in Jarjar Corp.	?
Liabilities	700,000	1,932,000
Ordinary Shares	840,000 (P20 par)	280,000 (P10 par)
Share Premium	210,000	112,000

On January 1, 2018, Cheela acquired all of the outstanding shares of Jarjar for P298,000 in cash and ordinary shares. Cheela also pays P24,000 in lawyers’ fees and other combination costs as well as P14,000 in share issuance costs. At the date of acquisition, Jarjar’s buildings (with a six-year remaining life) have a P616,000 book value and a fair market value of P784,000.

Required:

Prepare the consolidated statements worksheet and present all elimination entries that would have been included in the consolidated statements worksheet to prepare a full set of consolidated financial statements for the year 2018.

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Answer rating: 100% (QA)

a Value of the shares of Jarjar Corporation as on date of acquisiti... View the full answer