CHAPTER 18.doc

CHAPTER 18 MULTIPLE CHOICES – COMPUTATIONAL 18-1:

a

Equipment – at srcinal cost Accumulated depreciation: Timeofsale Current depreciation based on Original cost (P500,000/10 years 18-2:

50,000

P100,000 ( ' 0,000  +0,000 P '0. P !,000

2 012 P200,000 ('0,000 P1+0,000 100,000 P"0,000

2013 P250,000   P250,000 150,000 P#00,000

c

"a !C #nreali$edloss#pstream eali$edloss((P12,000/534/12 )d*usted C "a !

P100,000 12,000 (1 ,200 P110,00

NCI in CI of subsidiary $P!!0,%00 & 5'( 18-5:

P300,000

b

Cfromonoperations!Prime #nreali$edgain!%onstream )d*ustednetincome!Prime "econd Company C ConsolidatedCI

18-4:

P250,000

b

"ol!C #nreali$ed gain on sale of computer, %ec& '1 )d*usted C C proportionate s-are NCI inCI of subsidiary 18-3:

P500,000

P ","00

c

Equipment – at srcinal cost Accumulated depreciation) Timeofsale P'40,000 Current depreciation (P600,000/10 60,000

P!,000,000

P #50,000

10

18-6:

a

)d*ustedC!"usie(P12,000/70. )ddbac8unreali$edgain!#pstream Co* Ifus i–e0!3 18-7:

P '0,000 60,000 P!0,000

a

Original cost )mountdebitedtoTruc8account

P100,000 (7,000

*elling price of t+e truc – Amount paid 18-8:

Po ! C #nreali$edgain,%ec&'1!%" Cfromonoperation!Po "oofC ConsolidatedC,%ec&'1,201' )ttributabletoC(P10,000320. Attributable to parent 18-9:

P 5,000

c

P200,000 ('0,000 2+0,000 10,000 P'50,000 ('4,000 P3!#,000

b

C, 9anuary 1, 201' (P1,000,000 3 20. C in diidends paid by subsidiary (P'0,000 3 20. C in C of subsidiary (P45,00 3 20. NCI, -ecember 3!, 0!3

P 200,000 ( 4,000 1',000 P 0",000

18-10: c C!"#$%a&'% CI a&&($b)&ab#' & *a('!&: Pin8 !C #nreali$edgain,9uly1%onstream eali$ed gain, %ec& '1 (P50,000 / 10 3 4/12 )d*usted C Pin8 ! "oda;s ad*usted net loss: et loss #nreali$ed loss, 1/1 ! #pstream eali$ed loss, 12/'1 (P15,000/5 ConsolidatedC,%ec&'1,201' )ttributabletoC(P2,000320. Attributable to parent

P'00,000 (50,000 2,500 P252,500 P(70,000 15,000 ( ',000

(2,000 P227,500 5,400 P30,!00

106

18-10, Continued: N!-c!&(##$!+ $!&'('"& ,NCI C, 9anuary 1, 201' ess C ! stee C P'4,640 C s-are of unreali$ed profit in ending nentory!#pstream 1,770 ?C s-are of unreali$ed gain on sale of @=uipment!#pstream 6,400 C per boo8 P7,000 %iided by 20. 270,000 et assets, 9an& 1, 201' P +40,000 Parent;sproportionates-are 30. ?oo8alueofinterestac=uired P 40,000 )dd:difference 20,000 Price paid 42,000 P )dd inestment income: Peter;ss-are of "tee C (P270,000 3 0. P 1 62,000 #nreali$ed profit in ending inentory ! %onstream (P27,000320./120.3100. ( 7 ,000 #nreali$ed profit in beginning inentory ! #pstream (P'4,000325/125. 30. ( 5,+40 #nreali$ed gain on sale of e=uipment ! #pstream (P7,000 ! 6,400 (',700 In.estment in *te.e Company, -ec/ 3!, 0!3 P ""!,%#0

110

18-12: a

Cfromonoperations!Pipe )d*usted C  "mo8er C #nreali$ed gain, 9uly 1, 201' ! #pstream eali$ed gain, %ec& '1, 201' (P50,000/53 A ConsolidatedCI,-ec/3!,0!3

P700,000 P100,000 (50,000 5,000

55,000 P#55,000

18-13: %

2 012 C fromoperations !Parent )d*usted C of "ub: C #nreali$edgain!#pstream eali$ed gain: 2010 (P6,000/' 3 B 2011(P6,000/' )d*usted C ConsolidatedC )ttributabletoC Attributable to parent

P100,000

2013 P120,000

40,000 P +5,000 P (6,000  +50  ',000 P51,+50 P+,000 P151,+50 P16,000 (10,'50 (15,400 P!#!,#00 P!%,#00

18-14: % I!'"&'!& $! S$#$ C*a! "&c – E)$& '&% Price paid P500,000 nestment income net of diidends ! 2006 to 2012: ncrease in earnings (P500,000 ! P200,000 3 +5. 225,000 nestment income, %ec& '1, 2012: "-are of"ili;sC(P40,0003+5. 75,000 #nreali$ed gain on sale of land ! %onstream (15,000 #nreali$ed loss on sale of building ! %onstream 10,000 eali$ed loss on sale of building (P10,000 / 5 3 6/12 ( 1,500 ',500 nestment income, %ec& '1, 201': "-are of "ili;s C (P+0,000 3 +5. 52,500 eali$edloss(P10,000/5 (2,000 50,500 %iidends receied: 2012:(P10,0003+5. +,500 201':(P20,0003+5. 15,000 (22,500 In.estment in *ili Company stoc, -ec/ 3!, 0!3 P"1!,500

111

18-15: a I!'"&'!& $! Sa C*a! "&c. /'c 31. 2013 Price paid P550,000 nestment income ! 200+ to 2011: ncrease in earnings (P500,000 ! P'00,000 3 60. 10,000 nestment income ! 2012: Poer;s s-are of "a C (100,000 3 60. P60,000 #nreali$ed gain ! >and (5,000 3 60. (7,500 #nreali$ed loss ! are-ouse (20,000 3 60. 1,000 eali$ed loss ! are-ouse (20,000/2 3 '/12 3 60. (2,250 101,250

nestment income ! 201': Poer;s s-are of "a;s C (P120,000 3 60. P10,000 eali$ed loss on sale of are-ouse (P20,000/2 3 60. (6,000  66,000 %iidends receied: 2012:(P20,000360. P1,000 201': (P'0,000360. 2+,000 (75,000 In.estment in *a2 Company stoc account balance !3!!3 P%%5,50

PROLEMS P(b#' 18-1

Computation of t-e missing amounts in t-e or8ing paper eliminations for P Corporation and " Company: (1 P470 (P ',200 3 20. (2 P2,540 (P ',200 3 0. (' P1,400 ( P00 3 2 (7 P'20 (P 1,400 3 20. (5 P1,20 (P 1,400 3 0. (4 P',200 (P00 3 7

P(b#' 18-2 a

C!"#$%a&'% C*(''!"$' I!c' Cfromonoperations!PCompany #nreali$ed gain on sale of e=uipment, %ec& '1 ! %onstream )d*usted Co P C ! " Company C Consolidatedneitncom e

P200,000 ('0,000 P1+0,000 10,000 P350,000

b

NCI $! CI  ")b"$%$a( (P10,000 3 20.

P 3,000

c

N!-c!&(##$!+ $ !&'('"& , NCI: C, 9anuary 1, 201' $!a!c$a# P"$&$!? /'c'b'( 31. 2013

Assets Cas-andcas-e=uialents )ccounts receiable nentory >and ?uildingsande=uipment >ess: )ccumulateddepreciation Foodill Total assets

:iabilities and *toc+olders; equity ia'ilities )ccounts payable ?onds payable Total liabilities .toc/holders quity Common stoc8 etainedearnings C Totalliabilitiesandstoc8-olders;e=uity

P 121,000 21,000 '50,000 150,000 P455,000 2+',000

'2,000 70,000 P1,04',000

P +',000 250,000 P '2',000 P'00,000 70+,000 '',000

+70,000 P1,04',000

=$!c'!& C*a! a!% S)b"$%$a( C!"#$%a&'% S&a&''!&  C*(''!"$' I!c' ;'a( E!%'% /'c'b'( 31. 2013

"ales Cost of goods sold Fross profit @3penses: %epreciation O t-ere3penses Consolidatedcompre-ensieincome )ttributable to C )ttributable to parent

'40,000 P 200,000 140,000 P',000 20,000

5,000 102,000 4,000 P 64,000

=$!c'!& C*a! a!% S)b"$%$a( C!"#$%a&'% R'&a$!'% Ea(!$!+" ;'a( E!%'% /'c'b'( 31. 2013

etainedearnings,9an&1!Iincent etainedearnings,9an&1!9upiter Total ConsolidatedCattributabletoparent %iidendsdeclared!Iincent Consolidatedretainedearnings

P2 67,000 7+,000 '71,000 64,000 ('0,000 P 70+,000

114

P(b#' 18-7 P C*a! a!% S)b"$%$a( C!"#$%a&'% ess boo8 alue of interest ac=uiree: "mall;se=uity nterestac=uired ?oo8 alue of interest ac=uired @3cess )llocatedtopatents Foodill

)morti$ationofpatents(P120,000/12

Total P420,00 '50,000

(rice paid )09 P'+2,000 '50,000 40.

2+0,000 (120,000  P150,000

210,000 142,000

*C+ ;09 P27,000 '50,000

70. 170,000 10,000

P 10,000

,2

U!('a#$'% +a$! ! $!&'(c*a! "a#'  b)$#%$!+ – U*"&('a. Ba! 1. 2013 : #nreali$ed gain at date of sale (P0,000 ! P'0,000 P 50,000 eali$edgain(P50,000/532years (20,000 #nreali$edgainasof9an&1,201' P '0,000

,3

R'a#$'% *($& ( $!&'(c*a! "a#'  $!'!&( – /!"&('a. 1113 : emaininginentoryasof%ec&'1,2012 P 50,000 Fross profit rate on sales ! 2012 (P'0,000 / P150,000 3 2 0. eali$edprofitasof9an&1,201' P 10,000

,4

U!('a#$'% *($& ( $!&'(c*a! "a#'  $!'!&( – /!"&('a. 123113 emaininginentoryasof%ec&'1,201' P 70,000 Fross profit rate on sales ! 201' (P7,000 / P140,000 3 ' 0. #nreali$edprofitasof%ec&'1,201' P 12,000

C!"#$%a&'% ba#a!c'" – 2013 a

b

C"&  +%" S#% Costofgoodssold! )pe3 Costofgoodssold!"mall ntercompanysaleofinentory!201' eali$edprofitonbeginninginentory #nreali$edprofitonendinginentory Consolidated

P740,000 205,000 (140,000 ( 10,000 12,000 50+,000 P

O*'(a&$!+ E*'!"'"

Operatinge3penses e3penses!!"mall )pe3 Operating )morti$ation(o&1aboe @3cessdepreciation(P50,000/5years Consolidated

P1+0,000 +0,000 10,000 (10,000 270,000 P

116

c

C!"#$%a&'% C *(''!"$' I !c' A&&($b)&ab#' & P a('!& "ales(after elimination ofintercompany sales Cost of goods sold (a Operating e3penses (b C in C of subsidiary: "mall C ! P25,000 eali$ed gain on sale of building ! #pstream 10,000

)d*usted C C )ttributable to parent

P'5,000 3 70.

P 70,000 (50+,000 (270,000

( 17,000 P+6,000

%

C!"#$%a&'% R'&a$!'% Ea(!$!+". B a! 1 . 2 013 etainedearnings,9an&1,2012!)pes P 460,000 )morti$ation of patents ! 200+ to 2012(P10,000 3 4 (40,000 #nreali$ed profit on inentory, 2012! %onstream (10,000 #nreali$ed gain on sale of building, 1/1/1'  #pstream (P'0,000 3 40. (1,000 Consolidatedretainedearnings,9an&1,201' P 402,000

'

C!"#$%a&'% I!'!&( nentory )pe3 ! nentory "mall ! #nreali$edprofitininentory!%ec&'1,201' Consolidated inentory

2'',000 P 226,000 ( 1 2,000 P750,000

C!"#$%a&'% )$#%$!+ ?uildings )pe3 ! ?uildings "mall ! #nreali$edgain,9an&1,201' eali$edgain,2011!201' (P10,0003' Consolidated buildings

'0,000 P 202,000 (50,000 '0,000 P760,000



+

&

C!"#$%a&'% Pa&'!&" Patents "mall ! )llocation )morti$ation,200+!201'(P10,0003+ Consolidatedpatents(net

P20,000 120,000 (+0,000  P +0,000

C!"#$%a&'% C! S&c H P'00,000 ()pe3 common stoc8

120

P(b#' 18-9 P C*a! a!% S)b"$%$a( C!"#$%a&'% ess boo8 alue of interest ac=uired (100. Commonstoc8!"Company )dditional paid in capital ! " Company etainedearnings!"Compay @3cess )llocated to mac-inery

P+50,000 P700,000 0,000 154,000

4'4,000 P117,000 (57,000

121

Foodill

40,000 P

P(b#' 18 – 10 P#)& C(*(a&$! a!% S)b"$%$a( S&a( C(*(a&$! C*a(a&$' C!"#$%a&'% I!c' S&a&''!& ;'a(" E!%'% /'c'b'( 31. 2012 a!% 2013

&  2013 "ales Cost of goods sold Fross profit Operation e3penses Consolidatedcompre-ensieincome C in C of subsidiary )ttributable to e=uity -olders of Pluto

4ecem'er 31



2012

*upporting computations) / & Consolidated sales) Combined sales >ess: intercompany sales Consolidated sales Consolidated cost of goods sold) Combinedcostsofgoodsold ntercompanysales #nreali$edprofitinendinginentory #nreali$ed profit in beginning inentory Consolidated cost of goods sold Consolidated operating e&penses Combinedoperatinge3penses eali$ed gain on sale of e=uipment (P10,000/&2 Consolidated operating e3penses

 P00,000 772,000 '5,000 1+,000 10,000 10,000 P1+0,000

P440,000 '4,000 262,000 1',000 157,000 10,000 P177,000

& & & &

2013

2012

/ 

P50,000 (50,000 P00,000

P+00,000 (70,000 P440,000

& &

P760,000 (50,000 10,000 (,000 P772,000

P10,000 (2,000 P1+,000

NCI in CI of subsidiary "tarCompany;sreportedC

P45,000

Fainonupstream ofland #nreali$ed gainsale in upstream, inentory sales eali$ed C C C in C of subsidiary

(5,000 (10,000 P50,000 20. P10,000

P700,000 (70,000 ,000 P'4,000

& &

P170,000 (2,000 P1',000

& &

P50,000 & P50,000 20. P10,000

& &

122

12'