Determine the consolidated balances of COST OF GOODS SOLD in the year 20×6. Transcribed Image Text: Phlaire acquired 70 percent of Syanne on July 1, 20×5. Based on the purchase

Determine the consolidated balances of COST OF GOODS SOLD in the year 20×6. Transcribed Image Text: Phlaire acquired 70 percent of Syanne on July 1, 20×5. Based on the purchase price, proportionate goodwill of
P450,000 was recognized. The 20×6 financial statements are as follows:
Phlaire
Syanne
Income Statement
900,000
(600,000)
(150,000)
Sales
P 1,200,000
(802,500)
(150,000)
P
Cost of Goods Sold
Operating Expenses
Dividend Income
52,500
-0-
Net Income
300.000
P.
150.000
Statement of Accumulated Profits
Accumulated Profits, January 1, 2016
P 1,275,000
P1,950,000
300,000
Net Income
150,000
Dividends Paid
(150,000)
( 75,000)
Accumulated Profits, December 31, 2016
P2,100,000 P 1,350,000
Statement of Financial Position
Cash and Receivables
600,000
447,000
P
450,000
1,050,000
Inventory
Investment in Syanne
Fixed Assets
1,353,000
1,500,000
-0-
900,000
Accumulated Depreciation
Total Assets
(450,000)
P 3,450,000 P 2,100,000
(300,000)
Liabilities
600,000
150,000
P
900,000
P
Ordinary share
Accumulated profits
Total Liabilities and Equity
450,000
2,100 000
(Ctrl)
P 3,450,000 P 2,100,000
Phlaire sells inventory costing P108,000 to Syanne during 20×5 for P180,000. At year’s end, 30 percent is
left. Syanne sellsinventory costing P300,000 to Phlaire during 201x for P375,000. At year’s end, 20 percent is
left.

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