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Solution To Part II Exam

The document outlines the acquisition costs, fair value of net identifiable assets, and goodwill related to the acquisition of Mama Corp by Papa Corp. It includes detailed financial statements for both companies, showing assets, liabilities, and income statements for the year ending December 31, 2023. The consolidation working papers reflect the financial performance and position of the combined entities.

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Geofrey Rivera
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25 views10 pages

Solution To Part II Exam

The document outlines the acquisition costs, fair value of net identifiable assets, and goodwill related to the acquisition of Mama Corp by Papa Corp. It includes detailed financial statements for both companies, showing assets, liabilities, and income statements for the year ending December 31, 2023. The consolidation working papers reflect the financial performance and position of the combined entities.

Uploaded by

Geofrey Rivera
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Acquisition Costs:

Cash 2,000,000
Ordinary Shares (15,000 shares X P110 per share) 1,650,000
Non-Controlling Interest (30% X FV of NA P3,180,000) 450,220
Total Acquisition Costs 4,100,220
Less: Fair Value of Net Identifiable Assets of Mama:
Cash 400,000
Accounts Receivable 300,000
Inventories 650,000
Land 1,500,000
Building, net 1,100
Accounts Payable - 600,000
Total Fair Value of Net Identifiable Assets of Mama 2,251,100
Goodwill 1,849,120
PAPA MAMA Debit Credit
Cash 4,500,000 400,000 2,060,000
Accounts Receivable 400,000 300,000 20,000
Inventories 500,000 600,000 50,000
Goodwill - 1,424,000
Land 5,000,000 1,200,000 300,000
Building 3,000,000 1,200,000 250,000
Accumulated depreciation - 500,000 - 200,000 200,000
TOTAL ASSETS 12,900,000 3,500,000

Accounts Payable 2,000,000 600,000


Ordinary Shares 5,000,000 1,500,000 1,500,000 1,500,000
Share Premium 1,000,000 650,000 660,000 150,000
Retained Earnings 4,900,000 750,000 800,000
Non-Controlling Interest 954,000
TOTAL LIABILITIES & SHE 12,900,000 3,500,000
- -

PAPA MAMA
Cash 4,440,000 720,000
Accounts Receivable 550,000 300,000 30,000
Inventories 750,000 100,000 50,000 40,000
Investment in Mama Corp. 3,602,000 13,100 3,650,000
Land 5,000,000 1,200,000 300,000
Building 3,000,000 1,200,000 240,000
Accumulated depreciation - 1,000,000 - 400,000 208,000
Goodwill 1,106,000 3,500
TOTAL ASSETS 16,342,000 3,120,000

Accounts Payable 2,000,000 600,000


Ordinary Shares 6,500,000 1,500,000 1,500,000
Share Premium 1,140,000 650,000 650,000
Retained Earnings 5,260,000 770,000
Non-Controlling Interest 2,400 636,000
TOTAL LIABILITIES & SHE 14,900,000 3,520,000

Sales 2,000,000 800,000


COGS 800,000 480,000 40,000
Gross Profit 1,200,000 320,000
Investment Income - 40,000 13,100
Total Income 1,160,000 320,000
Depreciation expense 500,000 200,000 8,000
Impairment loss Goodwill 3,500
Other expenses 200,000 100,000
Net Income 460,000 20,000
NCIinNIS 2,400
NI to RE 460,000 20,000

Retained Earnings - beginni 4,900,000 750,000 750,000


Net Income from above 460,000 20,000
Dividend - 100,000
Retained Earnings - ending 5,260,000 770,000 4,623,000 4,623,000

Papa Corp. Mama Corp Debit Credit


Sales 2,000,000 800,000
Investment (Loss) - 50,000 50,000
Total Revenues 1,950,000 800,000
Cost of Goods Sold 800,000 480,000 50,000
Depreciation expense-Buildi 500,000 200,000 20,000
Impairment loss Goodwill 10,000
Other expenses 200,000 100,000
Total cost and Expenses 1,500,000 780,000
Net Income 450,000 20,000
NCI in Net Income of Mama 1,200
Net Income to Retained Earnings

Retained Earnings - beginni 4,900,000 750,000 750,000


Net Income from Above 450,000 20,000
Dividend - 100,000 - 10,000 10,000
Retained Earnings - end 5,250,000 760,000

Cash 2,998,000 1,110,000


Accounts Receivable 550,000 300,000
Inventories 750,000 100,000 50,000 50,000
Investment in Mama Corp. 3,592,000 58,000 3,650,000
Land 5,000,000 1,200,000 300,000
Building 3,000,000 1,200,000 100,000
Accumulated depreciation - 1,000,000 - 400,000 200,000 20,000
Goodwill 970,000 10,000
TOTAL ASSETS 14,890,000 3,510,000
Accounts Payable 2,000,000 600,000
Ordinary Shares 6,500,000 1,500,000 1,500,000
Share Premium 1,140,000 650,000 650,000
Retained Earnings from Abo 5,250,000 760,000
Non-Controlling Interest 2,000 671,200
TOTAL LIABILITIES & SHE 14,890,000 3,510,000 4,561,200 4,561,200

Papa Corporation and Subsidiary


Working Paper for Consolidation of Financial Statements
December 31, 2023

Papa Corp. Mama Corp Debit Credit


Sales 2,000,000 800,000
Investment (Loss) - 50,000 -
Total Revenues 1,950,000### 800,000
Cost of Goods Sold 800,000 480,000
Depreciation expense-Buildi 500,000 200,000
Impairment loss Goodwill
Other expenses 200,000 100,000
Total cost and Expenses 1,500,000 780,000
Net Income 450,000 20,000
NCI in Net Income of Mama
Net Income to Retained Earnings

Retained Earnings - beginni 4,900,000 750,000


Net Income from Above 450,000 20,000
Dividend - 100,000 - 10,000
Retained Earnings - end 5,250,000 760,000

Cash 2,998,000 1,110,000


Accounts Receivable 550,000 300,000
Inventories 750,000 100,000
Investment in Mama Corp. 3,592,000 -
Land 5,000,000 1,200,000
Building 3,000,000 1,200,000
Accumulated depreciation - 1,000,000 - 400,000
Goodwill
TOTAL ASSETS 14,890,000 3,510,000

Accounts Payable 2,000,000 600,000


Ordinary Shares 6,500,000 1,500,000
Share Premium 1,140,000 650,000
Retained Earnings from Abo 5,250,000 760,000
Non-Controlling Interest
TOTAL LIABILITIES & SHE 14,890,000 3,510,000
2,840,000
680,000
1,150,000
1,424,000
6,500,000
3,950,000
- 500,000
16,044,000
-
2,600,000
6,500,000
1,140,000
4,850,000
954,000
16,044,000
-

5,160,000
820,000
860,000
- 34,900
6,500,000
3,960,000
- 1,192,000
1,102,500
17,175,600
- 1,442,000
2,600,000
6,500,000
1,140,000
5,360,000
633,600
16,233,600

2,800,000
1,320,000
1,480,000
- 26,900
1,453,100
692,000
3,500
300,000
457,600
2,400
460,000

4,900,000
460,000

5,360,000

Consolidated
2,800,000
-
2,800,000
1,330,000
720,000
10,000
300,000
2,360,000
440,000
- 1,200
438,800

4,900,000
438,800
- 100,000
5,238,800

4,108,000
850,000
850,000
-
6,500,000
4,100,000
- 1,220,000
960,000
16,148,000
2,600,000
6,500,000
1,140,000
5,238,800
669,200
16,148,000

ents

Consolidated
Test I Test II Papa Corporation and Subsidi
1D Working Paper for Consolidation of Finan
2D December 31, 2023
3C
4C Sales
5A Investment Income (Loss)
6A Total Revenues
7D Cost of Goods Sold
8B Depreciation expense-Building
9B Impairment loss Goodwill
10 D Other expenses
11 B Total cost and Expenses
12 D Net Income
13 B NCI in Net Income of Mama
14 D Net Income to Retained Earnings
15 A
16 D Retained Earnings - beginning
17 D Net Income from Above
18 D Dividend
19 A Retained Earnings - end
20 C
21 A
22 C Cash
23 C Accounts Receivable
24 B Inventories
25 A
Investment in Mama Corp.
Land
Building
Accumulated depreciation
Goodwill
TOTAL ASSETS

Accounts Payable
Ordinary Shares
Share Premium
Retained Earnings from Above

Non-Controlling Interest

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY


Papa Corporation and Subsidiary
g Paper for Consolidation of Financial Statements
December 31, 2023
Papa Corp. Mama Corp Debit Credit Consolidated
2,000,000 800,000 2,800,000
- 50,000 4 50,000 -
1,950,000 800,000 2,800,000
800,000 480,000 3 50,000 1,330,000
500,000 200,000 3 20,000 720,000
3 10,000 10,000
200,000 100,000 300,000
1,500,000 780,000 2,360,000
450,000 20,000 440,000
5 1,200 - 1,200
438,800

4,900,000 750,000 1 750,000 4,900,000


450,000 20,000 438,800
- 100,000 - 10,000 4 10,000 - 100,000
5,250,000 760,000 5,238,800

2,998,000 1,110,000 4,108,000


550,000 300,000 850,000
750,000 100,000 2 50,000 3 50,000 850,000
4 58,000 1 2,320,000
3,592,000 -
2 1,330,000
5,000,000 1,200,000 2 300,000 6,500,000
3,000,000 1,200,000 2 100,000 4,100,000
- 1,000,000 - 400,000 2 200,000 3 20,000 - 1,220,000
2 970,000 3 10,000 960,000
14,890,000 3,510,000 16,148,000

2,000,000 600,000 2,600,000


6,500,000 1,500,000 1 1,500,000 6,500,000
1,140,000 650,000 1 650,000 1,140,000
5,250,000 760,000 5,238,800
4 2,000 1 580,000
2 90,000 669,200
5 1,200
14,890,000 3,510,000 4,561,200 4,561,200 16,148,000
-

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