FABULAR Intercompany Dividends
FABULAR Intercompany Dividends
FABULAR Intercompany Dividends
BSA 3
Requirement 1. Prepare the Working paper Elimination Entries on December 31, 2021.
The investment in subsidiary is measured at cost. Therefore, ABC recognized the dividend in
profit or loss.
*(6,000 x 80% = 4,800 share of Parent); (6,000 x 20% = 1,200 share of Subsidiary)
Owners of parent NCI Consolidated
ABC Group
Consolidated Statement of Financial Position
As of December 31, 2021
ASSETS
Cash (27,800 + 51,000) P 78,800
Accounts receivable (75,000 + 22,000) 97,000
Inventory (105,000 +15,000) 120,000
Equipment, net (140,000 + 30,000 + 10,000) 180,000
Goodwill 3,000
TOTAL ASSETS P 478,800
LIABILITIES AND EQUITY
Accounts payable (73,000 + 30,000) P 103,000
Total liabilities P 103,000
Equity
Share capital (Parent only) 170,000
Share premium (Parent only) 65,000
Retained earnings (Parent only) 121,200
Owners of parent 356,200
Non-controlling interest 19,600
Total equity 375,800
TOTAL LIABILITIES AND EQUITY P 478,800
ABC Group
Statement of Profit or Loss
For the year ended December 31, 2021