Make Entries that Plow Company would have made

Assignment Help Financial Accounting

Reference no: EM132788145

Question - On January 1, 2020, Plow Company purchased an 80% interest in Slow Co. for P280,000. On this date, Slow Company had Ordinary share capital of P100,000 and Retained Earnings of P50,000. An examination of Slow Company's assets and liabilities revealed that book values were equal to market values all except plant and equipment (net) which had a book value of P200,000 and a market value of P250,000, and inventory which had a book value of P60,000 and a market value of P80,000. The plant and equipment had an expected remaining life of 5 years, and the inventory could all be sold in 2020. Plow Company's income from its own operations was P70,000 in 2020 and P80,000 in 2021.

Slow Company's income was P60,000 in 2020 and P50,000 in 2021. Slow Company did not pay any dividends on either year. Goodwill impairment losses were P5,000 in 2014 and P4,000 in 2015.

Required -

1. Make Entries that Plow Company would have made in 2020 and 2021 with respect to its investment in Slow Company.

2. Make Elimination entries for consolidated statement working papers on December 31, 2020 and December 31, 2020. Plow Company elects to measure non-controlling interest at its proportionate share of the identifiable net assets.

3. Make Schedular calculation of consolidated net income for 2020 and 2021.

Reference no: EM132788145

Questions Cloud

Demonstrate understanding of filmic concepts : How do images, combinations of images, or images and sounds, etc.-in art, cinema, intermedia, and/or social media-produce meaning and/or affect our lived.

What is the coefficient of variation of after-tax cash flows : What is the coefficient of variation of after-tax cash flows? Chip Engineering Corporation (CEC) is designing a new type of chip. The net after-tax cash outlay

What strategies did you use that they may find useful : Identify and elaborate on one or two lessons you have learned from our study of United States history that affect you today in your daily life and/or work.

Discussing the rise of romanticism in art and music : Write a 900-1,100-word paper discussing either (1) the rise of Romanticism in art and music, contrasting Romanticism with earlier eras.

Make Entries that Plow Company would have made : Make Entries that Plow Company would have made in 2020 and 2021 with respect to its investment in Slow Company

Explain the concept of behavioral finance : Define capital markets and give THREE (3) examples of how it can be useful to the company.

How slaves lived based upon primary documents : Write a two page paper of what you have learned about how slaves lived based upon primary documents introduced in Week 2 of the class Pick one of the topics.

How much is the stock worth to sanaponic inc : A constant dividend of $8/year forever. If you require 18 percent rate of return on investments in this risk class, how much is this stock worth to you?

Construct a price-weighted index for three stocks : Construct a price-weighted index for these three stocks and compute the percentage change in the series for the period from T to T + 1.

User Account

All Pages