INVESTMENT IN SCANN Corporation 2018-2019

Amount
 
$

2018

Investment in Cash -Scann Corporation-Jan-2018 6,400,000

Add: - share in Adjusted Net Income for the year-2018 of Scann Corporation
208,000
(260,000 X80%)
Less: - Dividend Received from Scann Corporation in 2018 (60000x80%) (48,000)
Closing Balance as on 31 Dec-2018 6,560,000

2019

Opening Investment as on 01-01-2019 6,560,000

Add: - share in Adjusted Net Income for the year-2019 of Scann Corporation
272,000
(340,000 X80%)
Less: - Dividend Received from Scann Corporation in 2019 (60000x80%) (48,000)
Closing Balance as on 31 Dec-2019 6,784,000
Working       
Adjusted Income of Scann Corporation 2018 2019  

Net income for the year 300,000 360,000

Less: - Amortization of Equipment for the Year (20,000) (20,000)

Less: - Amortization of Inventory for the Year (20,000) -

Adjusted Net Income for the year 260,000 340,000

Amortization of Undervalued Amounts 2018 2019 Balance

Equipment (80000/4) 20,000 20,000 40,000
Inventory (20000) Sold in 2018 20,000 - -
TOTAL 40,000 20,000 40,000
Part (2): Investment in Scann will not be shown in
consolidated Balance sheet as it is the part of
balance of Panorama Company only.
Part (3): Consolidated Net Income 2018-2019
Consolidated Net Income for 2018-2019
Amount
2018
$
Net Income of Panorama company  1,100,000
Add: - Net Income of Scann Corporation  300,000
Less: - Adjustment in Net Income of scann Corporation (Depreciation & C.G.S will
(40,000)
be charged)
Consolidated Net Income  1,360,000
2019 Amount $
Net Income of Panorama company  1,150,000
Add: - Net Income of Scann Corporation  360,000
Less: - Adjustment in Net Income of scann Corporation- (Depreciation will be
(20,000)
Charged)
Consolidated Net Income  1,490,000

Part (4): NON-Controlling Balance on Panorama’s

Ledger
NON-Controlling Interest for 2018-2019
2018 Amount $
Original share of NCI in Scann Assets (6,400,000/80000) x20 1,600,000
Add: - 20% share in Adjusted Income of scann Corporation (260,000X20%) 52,000
Less: - 20% Share in Dividend received (60,000 x20%) (12,000)
Closing Balance of NCI as on 31-12-2018 1,640,000
2019 Amount $
Opening Balance as on 01-01-2019 1,640,000
Add: - 20% share in Adjusted Income of scann Corporation (340,000X20%) 68,000
Less: - 20% Share in Dividend received (60,000 x20%) (12,000)
Closing Balance of NCI as on 31-12-2019 1,696,000

Part (5): The above same amounts will be shown

in consolidated Balance Sheet & its share in
Income will be shown in consolidated Income
Statement In 2018-2019
Question 2:
Consolidated Income Statement of POP
Industries
For the year Ended- 31st December-2019
Before
Adjustments Corrected
Correction

Description USD USD USD

Consolidated Sales   900,000 (153,000) 747,000

Consolidated Cost of Goods Sold   (500,000) (134,000) (366,000)

Gross Profit   400,000 381,000

Operating Expenses   (200,000) (200,000)

Net Profit   200,000 181,000

Pop Share 75%   175,000 (16,750) 158,250

Non-Controlling Interest 25%   25,000 (2,250) 22,750
Working   
Sales from POP to SAS (Parent to Subsidiary)   USD

Sales amount 95,000

cost of sales (75,000)

Profit on Intra Company Sales 20,000

Un-Realized profit (Half Inventory in Stock)   10,000

will be less from POP Share in SAS Profit

Sales from SAS to POP ( subsidiary to Parent) USD

Sales amount 58,000

cost of sales (40,000)

Profit on Intra Company Sales 18,000

Un-Realized profit (Half Inventory in Stock)   9,000

Adjustment

75% POP Share in Profit of SAS   6,750

25% NCI Share in Profit of SAS   2,250
Adjustments Made in Consolidate Income Statement
Intra company sales will be deducted from consolidated Sales Amount (95000+58000)=153,000
Cost of Sales Will also be adjusted with Same amount
Total Un-Realized Profit Will be Added back in Cost of Sales
parent Company Un-realized Profit will be distributable to its 75% share only
Subsidiary un-realized profit will also be shared 25% to NCI & 75 % to Parent company
1. Applied Sciences
2. Architecture and Design
3. Biology
4. Business & Finance
5. Chemistry
6. Computer Science
7. Geography
8. Geology
9. Education
10. Engineering
11. English
12. Environmental science
13. Spanish
 14. Government
15. History
16. Human Resource Management
17. Information Systems
18. Law
19. Literature
20. Mathematics
21. Nursing
22. Physics
23. Political Science
24. Psychology
25. Reading
26. Science
27. Social Science

Home
Blog
Archive
Essay
Reviews
Contact

Copyright © 2019 HomeworkMarket.com