he S Company owns 70% of the G Company. On the last day of the accounting period G sold to S a non-current asset for P210,000. The asset originally cost P480,000 and at the end of the reporting period its carrying amount in G’s books was P160,000. The group’s consolidated statement of financial position has been drafted without any adjustments in relation to this non-current asset. What adjustments should be made to the consolidated statement of financial position figures for retained earnings? Increase or decrease? * A. P50,000 decrease B. P15,000 decrease C. P50,000 increase D. Answer not
he S Company owns 70% of the G Company. On the last day of the accounting period G sold to S a non-current asset for P210,000. The asset originally cost P480,000 and at the end of the reporting period its carrying amount in G’s books was P160,000. The group’s consolidated statement of financial position has been drafted without any adjustments in relation to this non-current asset. What adjustments should be made to the consolidated statement of financial position figures for retained earnings? Increase or decrease? * A. P50,000 decrease B. P15,000 decrease C. P50,000 increase D. Answer not
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The S Company owns 70% of the G Company. On the last day of the accounting period G sold to S a non-current asset for P210,000. The asset originally cost P480,000 and at the end of the reporting period its carrying amount in G’s books was P160,000. The group’s consolidated statement of financial position has been drafted without any adjustments in relation to this non-current asset. What adjustments should be made to the consolidated statement of financial position figures for retained earnings? Increase or decrease? *
A. P50,000 decrease
B. P15,000 decrease
C. P50,000 increase
D. Answer not given
E. P35,000 decrease
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