John Kenneth E.

Bentir BSA – IV September 22, 2020

Acctg 10

Midterm – Assignment No. 1

1. A

PP 2,800,000
NCI (2,800,000 / 80%) x 20% 700,000
Total 3,500,000
Less: FVNA 3,437,000
GW 62,500

To eliminate the pre-acquisition equity of subsidiary

C/S 3,000,000
R/E 437,500
GW 62,500
IIS 2,800,000
NCI 700,000

2.
PP 100,000
Less: FVNA of subsidiary
Cash 15,500
A/R 35,800
Inventory 10,200
Plant Asset 90,000
Liabilities (28,800) 122,700
Gain (22,700)

Total asset of Parent 494,500

Less: PP 100,000
ARC 32,700 132,700
Total asset after acquisition 361,800
Add: Total asset of subsidiary
Cash 15,500
A/R 35,800
Inventory 10,200
Plant Asset 90,000 151,500
Consolidated Asset 513,300
3. C
Stockholders equity of Pablo
C/S 200,000
APIC 50,000
R/E 134,100 384,100
Less: ARC 32,700
351,400

4. D. Because on the books of subsidiary there no will be an entry on the time of acquisition and
it will be recorded at the Parent books

5. B
PP 1,500,000
Less: FVNA
Cash 100,000
A/R 200,000
Inventories 450,000
PPE 1,000,000
Liabilities (300,000)
Long-term liabilities (500,000) 950,000
GW 550,000

6. A

PP 395,000
NCI 100,000
Total 495,000
Less: FVNA
Cash 150,000
INV 275,000
PPE 500,000
Liabilities (400,000) 525,000
Gain 30,000

7. B

Stockholder’s equity of Papa 13,840,000

NCI (1,952,000/80%) x 20% 488,000
Consolidated Stockholders equity 14,328,000
8. B

PP 520,000
NCI (1,000 x 140) 140,000
Total 660,000
Less: FVNA
Assets 850,000
Liabilities 250,000 600,000
GW 60,000

Total Asset of Pop 3,800,000

Total Asset of Sun 850,000
GW 60,000
PP (520,000)
Consolidated Asset 4,190,000

C/S -Pop 1,500,000

R/E -Pop 950,000
Total Stockholders equity -Pop 2,450,000
NCI 140,000
Consolidated Stockholders equity 2,590,000

9.
Consolidated Current Asset 146,600
Less: Current asset – Pill 106,000
Current asset - Sam 40,000
Add: Receivable 2,000
Total 42,000

10. 0

11. A

NCI (2,000,000/80%) x 20% 500,000

12. A

PP 2,000,000
NCI 500,000
Total 2,500,000
Less: FVNA 1,875,000
Excess 625,000
Adjustment
INV 100,000
Building 200,000 (300,000)
GW 325,000

13.

14.

15. B

NCI (270,000/90%) x 10% 30,000

NCI Comprehensive income (20,000 x 10%) 2,000
Less: NCI Dividend Paid (10,000 x 10%) 1,000
December 31, 2013 NCI 31,000

16.

Comprehensive Income – Power 120,000

Net Income – Star 50,000
Consolidated Comprehensive Income 170,000

17. C

NCI (140,000/70%) x 30% 60,000

NCI net income (50,000 x 30%) 15,000
Less: NCI Dividend (5,000 x 30%) 1,500
December 31, 2013 NCI 73,500

18.
19. C

12/31/13 R/E - Sotto 51,000

Dividend Paid 5,000

R/E before dividends 56,000

Less:

1/1/13 R/E – Sotto 36,000

NI – Sotto 20,000

Multiply: 40%

Investment Income 8,000

20. B

Investment – Pony 12/21/13 131,000

Received Dividend from Sotto (50,000 x 40%) 2,000
Less: Investment Income 8,000
PP 125,000

21.

22. B

Stockholders equity -Phil 16,000,000

Net Income 2,500,000
Less: Dividends (900,000)
Consolidated Stockholders equity 17,600,000

23. C

PP 207,000
NCI (207,000/75%) x25% 69,000
Total 276,000
Less: FVNA (250,000 + 50,000) 250,000
Excess 26,000
24.

NCI (207,000/75%) x25% 69,000

NCI net income ([60,000 – 2,600] x 25%) 14,350
Less: Dividends Paid (2,000 x 20) x 25% 10,000
NCI 12/31/13 73,350

(200,000/100 = 2,000 shares)