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    Polo Company and Subsidiary Consolidated Statement of Financial Position As of December 31, 2020 Assets

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    Junzen Ralph Yap
    The document records the acquisition of Solo Co. and Sotto Company by Polo Company. It records the issuance of Polo shares to acquire Solo Co. and the payment of cash to acquire Sotto Company. It also records the consolidation entries to eliminate Solo Co. and Sotto Company's accounts and adjust their assets and liabilities to fair value. The consolidated statement of financial position combines the balances of Polo Company and its subsidiaries.

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    Polo Company and Subsidiary Consolidated Statement of Financial Position As of December 31, 2020 Assets

    Uploaded by

    Junzen Ralph Yap
    113 views3 pages
    The document records the acquisition of Solo Co. and Sotto Company by Polo Company. It records the issuance of Polo shares to acquire Solo Co. and the payment of cash to acquire Sotto Company. It also records the consolidation entries to eliminate Solo Co. and Sotto Company's accounts and adjust their assets and liabilities to fair value. The consolidated statement of financial position combines the balances of Polo Company and its subsidiaries.

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    The document records the acquisition of Solo Co. and Sotto Company by Polo Company. It records the issuance of Polo shares to acquire Solo Co. and the payment of cash to acquire Sotto Company. It also records the consolidation entries to eliminate Solo Co. and Sotto Company's accounts and adjust their assets and liabilities to fair value. The consolidated statement of financial position combines the balances of Polo Company and its subsidiaries.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    113 views3 pages

    Polo Company and Subsidiary Consolidated Statement of Financial Position As of December 31, 2020 Assets

    Uploaded by

    Junzen Ralph Yap
    The document records the acquisition of Solo Co. and Sotto Company by Polo Company. It records the issuance of Polo shares to acquire Solo Co. and the payment of cash to acquire Sotto Company. It also records the consolidation entries to eliminate Solo Co. and Sotto Company's accounts and adjust their assets and liabilities to fair value. The consolidated statement of financial position combines the balances of Polo Company and its subsidiaries.

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    © All Rights Reserved
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    A. Investment in Subsidiary - Solo Co.

    250,000 Polo
    Common Stock 100,000 Consolidate
    Additional Paid-in Capital 150,000 As
    To record the acquisition of the Solo Co.'s stocks by issuing
    own shares and acquisition-related costs
    Cash
    Receivables
    B. Professional fees expense 10,000 Inventory
    Additional Paid-in Capital 20,000 Property, plant and equ
    Cash 30,000 Goodwill
    To record the professional fees and stock issuance costs paid Total Assets
    LIABILITIE
    Current Liabilities
    E (1) PPE (more than its book value) 40,000 Long-term Liabilities
    Common Stock - Solo Co. 90,000 Common Stock
    Retained Earnings - Solo Co. 100,000 Additional Paid-in Capit
    Goodwill 20,000 Retained Earnings
    Investment in Subsidiary - Solo CO. 250,000 Total Liabilities and Sh
    To eliminate the subsidiary account against the equity
    accounts from Solo Co.

    Shares Consideration 250,000


    Less: Book value of Interest Acquired
    Common Stock 90,000
    Retained Earnings 100,000 190,000
    Balance 60,000
    Less: Equipment (more than book value) 40,000
    Goodwill 20,000

    A. Investment in Sotto Company 950,000


    Cash 950,000
    To record the acquisition of the Sotto Company's stocks

    B. Fair Value Pedro (80%) Sotto (20%)


    Fair Value of subsidiary 1,180,000 950,000 230,000
    Less: Book value of interest acquired
    Common stock 100,000
    APIC 200,000
    Retained earnings 600,000
    Total equity 900,000 900,000 900,000
    Interest acquired 0.80 0.20
    Book value 720,000 180,000
    Excess 280,000 230,000 50,000
    Adjustment of Identifiable Net Assets:
    Currents assets 50,000
    PPE (Net) - 100,000
    Current liabilities 0
    Long-term liabilities - 40,000
    Goodwill 190,000

    E (1) Common stock - Sotto Co. 100,000


    APIC - Sotto Co. 200,000
    Retained Earnings - Sotto Co. 600,000
    Investment in Sotto Company 720,000
    Non-controlling interest 180,000
    To eliminate the subsidiary accounts against equity accounts
    from Sotto Co.

    E (2) Property and equipment (Net) 100,000


    Long-term liabilities 40,000
    Goodwill 190,000
    Current assets 50,000
    Investment in Sotto Company 230,000
    Non-controlling interest 50,000
    To eliminate the subsidiary accounts against the adjustments
    of the net assets at their fair values
    Polo Company and Subsidiary
    Consolidated Statement of Financial Position
    As of December 31, 2020

    ASSETS
    70,000
    Receivables 120,000
    170,000
    Property, plant and equipment (net) 340,000
    20,000
    Total Assets 720,000
    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current Liabilities 30,000
    Long-term Liabilities 120,000
    Common Stock 210,000
    Additional Paid-in Capital 150,000
    Retained Earnings 210,000
    Total Liabilities and Shareholders' Equity 720,000

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