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The document contains financial information for Pacman Corporation and Rios Company, including assets, liabilities, equity accounts. It then provides a combined working paper and statement of financial position for the two companies as of January 1, 2021, with total assets of $1,115,000, total liabilities of $250,000, and total shareholder's equity of $865,000.

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JJ Jaum
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57 views

Assignment

The document contains financial information for Pacman Corporation and Rios Company, including assets, liabilities, equity accounts. It then provides a combined working paper and statement of financial position for the two companies as of January 1, 2021, with total assets of $1,115,000, total liabilities of $250,000, and total shareholder's equity of $865,000.

Uploaded by

JJ Jaum
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Jaymar L.

Jaum
Accounting 7aN

Requirement A.

Book of Pacman Corporation


Cash 40, 000
Inventory 80, 000
Investment 100, 000
Land 85, 000
Building and Equipment 230, 000
Accounts Payable 100, 000
Common Stock 320, 000
Additional Paid-in Capital 80, 000
Bargain Purchase Gain 35, 000

 Computation

Consideration Given (Common Stock) ₱ 400, 000


Fair Value of Net Asset (₱ 535, 000 - ₱ 100, 000) 435, 000
Bargain Purchase Gain ₱ 35, 000

Requirement B.
Book of Rios Company

A. Common Stock 400, 000


Accounts Payable 90, 000
Accumulated Depreciation 50, 000
Cash 40, 000
Inventory 50, 000
Investment 80, 000
Land 50, 000
Building and Equipment 160, 000
Gain on Sale 160, 000

B. Common Stock 100, 000


Additional Paid-in Capital 10, 000
Retained Earnings 130, 000
Gain on Sale 160, 000
Cash 400, 000

Requirement C

Working Paper
Accounts PACMAN CORPORATION RIOS COMPANY COMBINED

Cash ₱150, 000 ₱40, 000 ₱100, 000

Inventory 80, 000 80, 000 160, 000

Investment 120, 000 100, 000 220, 000

Land 100, 000 85, 000 185, 000

Building and Equipment 300, 000 230, 000 530, 000

Accumulated Depreciation (80, 000) (80, 000)

Total ₱670, 000 ₱535, 000 ₱1,115,000

Accounts Payable ₱150, 000 ₱100, 000 ₱250, 000

Common Stock 200, 000 520, 000

Additional Paid-in Capital 20, 000 60, 000

Retained Earnings 305, 000 285, 000

Total ₱670, 000 ₱1,115,000

Additional Computation

Cash Common Stock

Pacman Corp. ₱150, 000 Pacman Corp. ₱200, 000

Rios Co. 40, 000 Share issued at Par 320, 000

Cash Paid (90, 000) Total ₱520, 000

Total ₱100, 000

Additional Paid-in Capital Retained Earnings

Pacman Corp. ₱20, 000 Pacman Corp. ₱300, 000

Share issued above par 80, 000 Negative Goodwill 35, 000

Stock Issuance Cost (40 ,000) Acquisition Related Cost (50, 000)

Total ₱60, 000 Total ₱285, 000

PACMAN CORPORATION

Combined Statement of Financial Accounts

January 1, 2021
Assets

Cash ₱ 100, 000

Inventory 160, 000

Investment 220, 000

Land 185, 000

Buildings and Equipment ₱530,000

Accumulated Depreciation (80, 000) 450, 000

Total Assets ₱ 1, 115,000

LIABILITIES AND SHAREHOLDER’s EQUITY

LIABILITIES

Accounts Payable ₱ 250, 000

Total Liabilities ₱ 250, 000

SHAREHOLDER’s EQUITY

Common Stock ₱ 520, 000

Additional Paid-in Capital 60, 000

Retained Earnings 285, 000

Total Shareholder’s Equity ₱ 865, 000

Total Liabilities and Shareholder’s Equity ₱ 1, 115, 000

Answers:

1. ₱ 1, 115, 000
2. ₱ 60, 000
3. ₱ 285, 000
4. ₱ 865, 000

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