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    Santos - Solution Finals

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    Ian Santos
    This document contains the solutions to accounting problems involving consolidation of financial statements. It addresses the calculation of goodwill, consolidated net income, allocation of acquisition costs, treatment of non-controlling interests, and adjustments needed to conform subsidiary accounting policies. The problems cover a range of consolidation topics tested on the BSA exam.

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    Santos - Solution Finals

    Uploaded by

    Ian Santos
    114 views3 pages
    This document contains the solutions to accounting problems involving consolidation of financial statements. It addresses the calculation of goodwill, consolidated net income, allocation of acquisition costs, treatment of non-controlling interests, and adjustments needed to conform subsidiary accounting policies. The problems cover a range of consolidation topics tested on the BSA exam.

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    Santos_Solution Finals

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    This document contains the solutions to accounting problems involving consolidation of financial statements. It addresses the calculation of goodwill, consolidated net income, allocation of acquisition costs, treatment of non-controlling interests, and adjustments needed to conform subsidiary accounting policies. The problems cover a range of consolidation topics tested on the BSA exam.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    114 views3 pages

    Santos - Solution Finals

    Uploaded by

    Ian Santos
    This document contains the solutions to accounting problems involving consolidation of financial statements. It addresses the calculation of goodwill, consolidated net income, allocation of acquisition costs, treatment of non-controlling interests, and adjustments needed to conform subsidiary accounting policies. The problems cover a range of consolidation topics tested on the BSA exam.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Santos, Christian B.

    3rd Year BSA


    Solutions:
    6.) P260,000 x 100/80 = P325,000
    = P325,000 - P260,000
    = P65,000
    7.) 60,000/10years = P6,000 Increase in CI
    8.) Subsidiary is wholly owned subsidiary that is why there is no NCI
    9.) Puno Net Income 145,000
    Less: Dividend from Sales (40,000 x 90%) (36,000)
    Net Income from own operation 109,000
    Sales Net Income 120,000
    Consolidated net income 229,000
    10.) Sy’s net income 300,000
    Amortization 60,000
    Adjusted Net Income 240,000
    240,000 x 10% 24,000
    11.) Purchase Amount 1,700,000
    Less: Fair value of Net Assets (1,300,000)
    Goodwill to be reported 400,000
    12.) Jan 1 - Mar 21, 2017
    Revenue 95,000
    Expenses (72,000)
    Net Income, prior 23,000

    Net Income, 2017 80,000


    Net Income, prior (23,000)
    Net Income, after acquisition 57,000
    % owned x 90%
    Net Inc attribute to Parent 51,300
    Net Income, Parent 140,000
    Consolidated Net Income 191,300
    13.) Acquisition cost 700,000
    Less: Book value of interest acquired 630,000
    Allocated to building 70,000

    Consolidated retained earnings


    Retained earnings, Jan. 1 - Pepe 550,000
    Consolidated net income attributable to parent:
    Net income – Precy 275,000
    Adjusted net income of Susy:
    Net income of Susy P100,000
    Amortization (P70,000 / 10)/2 (3,500)
    96,500
    NCI NIS (P96,500 x 30%) (28,950)

    342,550
    Dividends paid – Precy (70 000)
    Consolidated retained earnings, Dec. 31, 2013 822,550

    Minority interest in net assets of subsidiary


    Stockholders' equity of Susy, June 30 900,000
    Increase in earnings- net income (7/1 to 12/31) 100,000
    Stockholders' equity, Dec. 31, 2008 1,000,000
    Unamortized difference (P70,000 - P3,500) 66,500
    Adjusted net assets of Susy, Dec. 31, 2013 1,066,500

    NCI in net assets of subsidiary (P1,066,500 x 30%) 319,950

    14.) Sitio Company reported 70,000


    Sitio paid dividends (40,000)
    Total Sitio Company 30,000

    Pablo holds 70% of Sitio Company (30,000 x 70%) 21,000


    Pablo Corporation reported 130,000
    Total consolidated of CI attributable to parent 151,000
    15.) Acquisition Cost 216,000
    Less: BV of Interest Seed NI from operation
    acquired (220k × 80%) 176,000 Net Income 35,000
    Difference 40,000 Amortization
    Allocated to: (37,500 × .10) (3,750)
    Depreciable Assets 31,250
    (P30,000/.80) 37,500 Polo Net Income 95,000
    Minority Interest Total 126,250
    (P37,500 × .20) (7,500) Less: Goodwill
    (30,000) impairment loss (8,000)
    Goodwill 10,000 Consolidated NI 118,250
    16.) Consideration transferred (80%) 216,000
    NCI (20%) 54,000
    Total 270,000
    Less: BV of NA- Seed 220,000
    Excess 50,000
    Less: Goodwill 10,000
    Understatement of Depreciable Asset 40,000

    *NCI = (216,000/80%) x 20%

    Polo (80%) Seed (20%)


    Net Income P95,000 35,000
    Under- DA (40,000/10) (4,000)
    P95,000 31,000
    Share of Parent (80%) 24,800 (24,800)
    Impairment Loss (6,400) (1,600)
    Consolidated Net Income P113,400 P4,600

    Impairment Loss:
    (10,000-2,000)
    Polo: 8,000 x 80% = 6,400
    Seed: 8,000 x 20% = 1,600

    Retained Earnings, beg 520,000


    Consolidated NI - Parent 113,400
    Less: Dividends paid - Parent 46,000
    Consolidated Retained Earnings 587,400

    17.) Guess due to lack of time


    18.) Guess due to lack of time
    19.) Guess due to lack of time
    21-30.) Guess due to lack of time

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