CHAPTER 13

Topics: Generally Accepted Accounting Principles, Balance sheet, Revenue / Pages: 70 (3085 words) / Published: Jan 6th, 2015
CHAPTER 13
SUGGESTED ANSWERS

EXERCISES
Exercise 13 - 1
1.
2006
Sales
60,000

Cost of Sales

60,000

Cost of Sales
20,000

Inventory

20,000

2007
Retained Earnings, Parent
20,000

Inventory

20,000

2008
Retained Earnings, Parent
20,000

Cost of Sales

20,000

2.
2006
Sales
60,000

Cost of Sales

60,000

3.
2006
Sales
60,000

Cost of Sales

60,000

Cost of Sales
5,000

Inventory

5,000

P20,000 x 25%

2007
Retained Earnings, Parent
5,000

Cost of Sales

5,000

Exercise 13 - 2
1.
2006
Investment in Surigao Co.
150,000

Equity in Subsidiary Income

150,000

P200,000 x 75% = P150,000

Equity in Subsidiary Income
12,000

Investment in Surigao Co.

12,000

P42,000 x 40%/140% = P12,000

2007
Investment in Surigao Co.
262,500

Equity in Subsidiary Income

262,500

P350,000 x 75% = P262,500

2008
Investment in Surigao Co.
300,000

Equity in Subsidiary Income.

300,000

P400,000 x 75% = P300,000

Investment in Surigao Co.
12,000

Equity in Subsidiary Income

12,000

2.
Consolidation elimination entries

2006
Equity in Subsidiary Income
138,000

Investment in Surigao Co.

138,000

Cost of Sales
12,000

Inventory

12,000

2007
Equity in Subsidiary Income
262,500

Investment in Surigao Co.

262,500

Retained Earnings, Parent
12,000

Inventory

12,000

2008
Equity in Subsidiary Income
312,000

Investment in Surigao Co.

312,000

Investment in Surigao Co.
12,000

Cost of Sales

12,000

Exercise 13 – 3

a.
Sales
200,000

Cost of Sales

200,000

b.
Cost of Sales
16,000

Inventory

16,000

P80,000 x 20% = P16,000

Exercise 13 – 4

a.
Equity in Subsidiary Income
212,000

Investment in Selecta Co.

212,000

b.
Sales

You May Also Find These Documents Helpful

  • Chapter 13
  • Chapter 13
  • Chapter 13
  • chapter 13
  • Chapter 13
  • Chapter 13
  • Chapter 13
  • Chapter 13
  • Chapter 13
  • Chapter 13 notes