Solution-Prepare a draft of the December consolidated

Prepare a draft of the December consolidated statement

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Reference no: EM133143589

Question - On January 1, 2021, Day Co. acquired 75% interest in Night Co. for P216,000. On this date, the carrying amount of Night's net identifiable assets was P192,000, equal to fair value. Non-controlling interest was measured using the proportionate share method.

The financial statements of the entities on December 31, 2021 show the following information.

	Day Co.	Night Co.
ASSETS
Investment in subsidiary (at cost)	216,000	-
Other assets	720,000	282,000
TOTAL ASSETS	936,000	282,000

LIABILITIES AND EQUITY

Liabilities	84,000	30,000
Share capital	720,000	120,000
Retained earnings	132,000	132,000
Total equity	852,000	252,000
TOTAL LIABILITIES AND EQUITY	936,000	282,000

	Day Co.	Night Co.
Revenues	360,000	96,000
Operating expenses	(72,000)	(36,000)
Profit of the year	288,000	60,000

Additional information -

No dividends were declared by either entity during 2021. There were no intercompany transactions during the period.

However, it was determined at year-end that goodwill is impaired by P8,000.

Required - Prepare a draft of the December 31, 2021 consolidated statement of financial position and consolidated statement of profit or loss.

Reference no: EM133143589

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Prepare a draft of the December consolidated statement

Reference no: EM133143589

Reference no: EM133143589

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