Answer Happy

P Co acquired 80% of the shares in S Co one year ago when the
reserves of S Co stood at
$15,000. Draft statements of financial position for each company
are as follows.
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P Co
S Co
Assets
$

$
Non current assets
Property,
plan and equipment 188 200

81000
Investment in S Co 70000

-
258200
81000
Account receivable 42000

23000
Inventory
19345
7277
Total Assets
319545
111277
Equity and liabilities
Equity
Ordinary shares of $1 each
150000
40000
Retainded earnings
80000
38000
230000
78000
Accounts payable
77000
20890
Debt

12545
12387
Total equity and
liabilities

319545
111277
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During the year S Co sold 2000 units of goods to P Co $10 each,
the profit to S Co being 20% of selling
price. At the end of the reporting period, 1500 units of
these goods remained unsold in the
inventories of P Co.No payments for these goods took place
during the year. NCI is valued at full fair value it was valued at
7000 at the date of acquisition.
Required:
Prepare a draft consolidated statement of financial position for
P Co