BM2010

NAME: DATE: SCORE:

PROBLEM-SOLVING (43 points: 4 items x 2 points; 7 items x 5 points)

Direction: Analyze the case and give what is asked.

Popoy Corporation (PC) purchased all the common shares of Sia Company (SC) on January 1, 20X1, for
P180,000 cash. The fair value and carrying amounts of SC’s net identifiable assets are equal. The trial balances
for both companies on December 31, 20X1 are as follows:

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

Rubric for grading the computation:

CRITERIA POINTS
Complete solution with the correct answer 5
Half of the solution is correct 3
The first major step of the solution is correct 1

Rubric for grading the journal entries:

CRITERIA POINTS
Complete and correct accounts with correct amounts 2
Incomplete but correct accounts with correct amounts 1

05 Activity 1 *Property of STI

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