Financial Accounting and Reporting notes

FINANCIAL ACCOUNTING AND REPORTING TEST BANK PROBLEM 1 – INVESTMENT IN ASSOCIATE On January 1, 2016, an entity acquired a 10% interest in an investee for P3,000,000. The investment was accounted for under the cost method. During 2016, the investee reported net income of P4,000,000 and paid dividend of P1,000,000. On January 1, 2017, the entity acquired a further 15% interest in the investee for P8,500,000. On such date, the carrying amount of the net assets of the investee was P36,0...

FINANCIAL ACCOUNTING AND REPORTING TEST BANK PROBLEM 1 – STATEMENT OF FINANCIAL POSITION The following trial balance of an entity on December 31, 2017 has been adjusted except for income tax expense. Cash 6,000,000 Accounts receivable 14,000,000 Inventory 10,000,000 Property, plant and equipment 25,000,000 Accounts payable 9,000,000 Income tax payable 6,000,000 Preference share capital 3,000,000 Ordinary share capital 15,000,000 Share premium 4,000,000 Retained ear...

FINANCIAL ACCOUNTING AND REPORTING TEST BANK PROBLEM 1 – INVESTMENT IN ASSOCIATE On January 1, 2016, an entity acquired a 10% interest in an investee for P3,000,000. The investment was accounted for under the cost method. During 2016, the investee reported net income of P4,000,000 and paid dividend of P1,000,000. On January 1, 2017, the entity acquired a further 15% interest in the investee for P8,500,000. On such date, the carrying amount of the net assets of the investee was P36,0...

FINANCIAL ACCOUNTING AND REPORTING TEST BANK PROBLEM 1 – STATEMENT OF FINANCIAL POSITION The following trial balance of an entity on December 31, 2017 has been adjusted except for income tax expense. Cash 6,000,000 Accounts receivable 14,000,000 Inventory 10,000,000 Property, plant and equipment 25,000,000 Accounts payable 9,000,000 Income tax payable 6,000,000 Preference share capital 3,000,000 Ordinary share capital 15,000,000 Share premium 4,000,000 Retained ear...