PROFELEC 1 (Review of Advanced Financial Accounting & Reporting)

PRELIM PERIOD - A.Y. 2024-2025

Instr. Mike Glenard F. Cascante

Consolidated Statement of Financial Position - Date of Acquisition

Consolidation of the two companies is automatic because all subsequent transactions are
recorded in a single set of books of the acquirer.

Business combination may be achieved when a company acquires a large enough interest in
another company's voting common stock to obtain control of operations.

Parties in Business Combination

Parent - company owning the controlling interest.

Controlling interest - ownership of 50% or more of the subsidiary's voting stock.
Subsidiary - the controlled/acquired company who has the non-controlling
interest/minority interest

IFRS 10 requires that an entity that is a parent must present consolidated financial statements
that include all subsidiaries of the parent with the exceptions to this rule per below:

1. The parent itself is a wholly-owned subsidiary or it is a partially-owned subsidiary of

another entity
2. Its debt and equity instruments are not traded in a public market
3. It did not file its financial statements with SEC.
4. Its ultimate or intermediate parent produces consolidated financial statements
5. Investment is recorded at fair value thru profit or loss in accordance with IFRS 9

Notes in consolidating statement of financial position

1. Eliminate Investment account on the parent company's balance sheet against the stockholders'
equity accounts in the balance sheet of subsidiary company.
2. Remaning assets and liabilities of both parent and subsidiary company are then combined in the
consolidation working papers.
3. Intercompany adjustments and eliminations are made on the consolidation working paper
and should not be recorded on the books of either parent or subsidiary company.

COMPARISON BETWEEN ASSETS AND STOCK ACQUISITION

ASSET ACQUISITION STOCK ACQUISITION

-the company whose assets were -the acquired company remains

acquired is dissolved as a separate legal entity

-acquisition is recorded in the books -only an Investment account is recorded

of the acquirer. related to the acquired company

- no consolidation required since acquisition -consolidation of statement of financial

is directly recorded in the books of the position on the date of acquisition is
acquirer. required if the control over the acquiree
exists. (control means parent owns
over 50% of the voting common stock)*

Same accounting procedure for a 100% stock acquisition and assets acquisition.
Non-controlling interest is not possible under asset acquisition.
ACQUISITION OF WHOLLY-OWNED SUBSIDIARY

ILLUSTRATION

P Company and S Company

Statement of Financial Position
December 1, 2023

P Company S Company
Assets
Cash 230,000.00 -
Accounts receivable 40,000.00 32,000.00
Inventory 50,000.00 20,000.00
Equipment (net) 180,000.00 158,000.00
Total 500,000.00 210,000.00

Liabilities and Equity

Accounts payable 280,000.00 110,000.00
Common stock 100,000.00 50,000.00
Additional paid in capital 80,000.00 30,000.00
Retained earnings 40,000.00 20,000.00
Total 500,000.00 210,000.00

CASE 1: ACQUISITION AT BOOK VALUE

Assume that P Company acquires all of S company’s outstanding common stock for P100,000.00
cash.

Consideration given (price paid) 100,000.00

Less: Book value of interest acquired (100%)
Common stock, S company 50,000.00
APIC, S company 30,000.00
Retained earnings, S company 20,000.00 100,000.00
Excess -

Entry in the books of P Company:

Investment in S Company 100,000.00

Cash 100,000.00

P Company and S Company

Statement of Financial Position
December 1, 2023

P Company S Company
Assets
Cash 130,000.00 -
Accounts receivable 40,000.00 32,000.00
Inventory 50,000.00 20,000.00
Equipment (net) 180,000.00 158,000.00
Investment in S Company 100,000.00
Total 500,000.00 210,000.00

Liabilities and Equity

Accounts payable 280,000.00 110,000.00
Common stock 100,000.00 50,000.00
Additional paid in capital 80,000.00 30,000.00
Retained earnings 40,000.00 20,000.00
Total 500,000.00 210,000.00

Working Paper Elimination Entry

E(1) Common stock, S company 50,000.00

APIC, S company 30,000.00
 Retained earnings, S company 20,000.00
Investment in S company 100,000.00

Consolidation Working Paper

P Company and S Company

Consolidation Working Paper
December 1, 2023
Eliminations
P Company S Company Debit Credit Consolidated
Assets
Cash 130,000.00 - 130,000.00
Accounts receivable 40,000.00 32,000.00 72,000.00
Inventory 50,000.00 20,000.00 70,000.00
Equipment (net) 180,000.00 158,000.00 338,000.00
Investment in S Company 100,000.00 - - 100,000.00 -
Total Assets 500,000.00 210,000.00 610,000.00

Liabilities and Equity

Accounts payable 280,000.00 110,000.00 390,000.00
Common stock
P, company 100,000.00 100,000.00
S, company 50,000.00 - 50,000.00 -
Additional paid in capital
P, company 80,000.00 80,000.00
S, company 30,000.00 - 30,000.00 -
Retained earnings
P, company 40,000.00 40,000.00
S, company 20,000.00 - 20,000.00 -
Total Liabilities and Equity 500,000.00 210,000.00 - 100,000.00 - 100,000.00 610,000.00

P Company and Subsidiary

Consolidated Statement of Financial Position
December 1, 2023

Assets
Cash 130,000.00
Accounts receivable 72,000.00
Inventory 70,000.00
Equipment (net) 338,000.00
Total Assets 610,000.00

Liabilities and Equity

Accounts payable 390,000.00
Common stock 100,000.00
Additional paid in capital 80,000.00
Retained earnings 40,000.00
Total Liabilities and Equity 610,000.00

CASE 2: ACQUISITION AT MORE THAN BOOK VALUE

Assume that P company acquires 100% of S Company's outstanding common for P110,000.00 in
cash on December 1, 2023.

Consideration given (price paid) 110,000.00

Less: Book value of interest acquired (100%)
Common stock, S company 50,000.00
APIC, S company 30,000.00
Retained earnings, S company 20,000.00 100,000.00
Goodwill 10,000.00
Entry in the books of P Company:

Investment in S Company 110,000.00

Cash 110,000.00

Working Paper Elimination Entry

E(1) Common stock, S company 50,000.00

APIC, S company 30,000.00
Retained earnings, S company 20,000.00
Goodwill 10,000.00
Investment in S company 110,000.00

Consolidation Working Paper

P Company and S Company

Consolidation Working Paper
December 1, 2023
Eliminations
P Company S Company Debit Credit Consolidated
Assets
Cash 120,000.00 - 120,000.00
Accounts receivable 40,000.00 32,000.00 72,000.00
Inventory 50,000.00 20,000.00 70,000.00
Equipment (net) 180,000.00 158,000.00 338,000.00
Investment in S Company 110,000.00 - 110,000.00 -
Goodwill 10,000.00 10,000.00
Total Assets 500,000.00 210,000.00 610,000.00

Liabilities and Equity

Accounts payable 280,000.00 110,000.00 390,000.00
Common stock -
P, company 100,000.00 100,000.00
S, company 50,000.00 50,000.00 -
Additional paid in capital -
P, company 80,000.00 80,000.00
S, company 30,000.00 30,000.00 -
Retained earnings -
P, company 40,000.00 40,000.00
S, company 20,000.00 20,000.00 -
Total Liabilities and Equity 120,000.00 50,000.00 110,000.00 110,000.00 610,000.00

P Company and Subsidiary

Consolidated Statement of Financial Position
December 1, 2023

Assets
Cash 120,000.00
Accounts receivable 72,000.00
Inventory 70,000.00
Equipment (net) 338,000.00
Goodwilll 10,000.00
Total Assets 610,000.00

Liabilities and Equity

Accounts payable 390,000.00
Common stock 100,000.00
Additional paid in capital 80,000.00
Retained earnings 40,000.00
Total Liabilities and Equity 610,000.00
CASE 3: ACQUISITION AT LESS THAN BOOK VALUE
Assume that P company acquires 100% of S Company's outstanding common for P80,000.00 in
cash on December 1, 2023

Entry in the books of P Company:

Investment in S Company 80,000.00

Cash 80,000.00

Consideration given (price paid) 80,000.00

Less: Book value of interest acquired (100%)
Common stock, S company 50,000.00
APIC, S company 30,000.00
Retained earnings, S company 20,000.00 100,000.00
Gain on acquisition - 20,000.00

Working Paper Elimination Entry

E(1) Common stock, S company 50,000.00

APIC, S company 30,000.00
Retained earnings, S company 20,000.00
Investment in S company 80,000.00
Gain on acquisition 20,000.00

Consolidation Working Paper

P Company and S Company

Consolidation Working Paper
December 1, 2023
Eliminations
P Company S Company Debit Credit Consolidated
Assets
Cash 150,000.00 - 150,000.00
Accounts receivable 40,000.00 32,000.00 72,000.00
Inventory 50,000.00 20,000.00 70,000.00
Equipment (net) 180,000.00 158,000.00 338,000.00
Investment in S Company 80,000.00 - 80,000.00 -
Total Assets 500,000.00 210,000.00 630,000.00

Liabilities and Equity

Accounts payable 280,000.00 110,000.00 390,000.00
Common stock -
P, company 100,000.00 100,000.00
S, company 50,000.00 50,000.00 -
Additional paid in capital -
P, company 80,000.00 80,000.00
S, company 30,000.00 30,000.00 -
Retained earnings -
P, company 40,000.00 20,000.00 60,000.00
S, company 20,000.00 20,000.00 -
Total Liabilities and Equity 120,000.00 50,000.00 100,000.00 100,000.00 630,000.00

ACQUISITION OF PARTIALLY-OWNED SUBSIDIARY (LESS THAN 100%)

Non-controlling interest (NCI) - the equity in a subsidiary not attributable, directly or indirectly to a parent.
NCI, in the consolidated financial statements, shall be shown as a component of stockholders' equity.
MEASUREMENT OF NCI
IFRS 3 provides 2 options:

1. At Fair Value - any goodwill that arises at the time of acquisition is allocated between the parent and the
non-controlling interest

2. At the Non-Controlling Interest's proportionate share of the acquiree's identifiable net assets
-any goodwill that arises at the time of acquisition is assigned only to the parent.

ILLUSTRATION

P Company
Statement of Financial Position
December 1, 2023

Assets Liabilities and Equity

Current assets Liabilities
Cash 218,000.00 Accounts payable 160,000.00
Accounts receivable 144,000.00 Bonds payable 400,000.00
Inventory 160,000.00 Total Liabilities 560,000.00
Total 522,000.00
Non-current assets Stockholders' Equity
Land 200,000.00 Common stock, P10 par value 400,000.00
Building (net) 840,000.00 APIC 500,000.00
Equipment (net) 400,000.00 Retained earnings 502,000.00
Total ########## Total 1,402,000.00
Total assets ########## Total Liabilities and Equity 1,962,000.00

S Company
Statement of Financial Position
December 1, 2023

Assets Book Value Fair Value

Accounts receivable 40,000.00 40,000.00
Inventory 100,000.00 110,000.00
Land 80,000.00 130,000.00
Building (net) 300,000.00 500,000.00
Equipment (net) 80,000.00 120,000.00
Total assets 600,000.00 900,000.00

Liabilities and Equity

Accounts payable 80,000.00 80,000.00
Bonds payable 200,000.00 200,000.00
Total liabilities 280,000.00 280,000.00
Stockholders' equity:
Common stock, P1 par value 20,000.00
APIC 180,000.00
Retained earnings 120,000.00
Total equity 320,000.00

Net assets 320,000.00 620,000.00

CASE 4: ACQUISITION AT MORE THAN FAIR VALUE WITH ADJUSTMENT OF SUBSIDIARY ACCOUNTS

Assume that instead of paying cash, P Company issued 6,000 shares of its P10 par value common stock for 80%
(16,000 shares) of the oustanding shares of S Company. The fair value of P company’s stock is P50 and the fair
value of the 20% of NCI is assessed to be P170,000.00. P Company also pays P50,000.00 in professional fees to
accomplish the acquisition. P Company would make the following entries:

(1) To record the acquisition of S Company stock:

Investment in S company (16,000 shares x P50) 800,000.00

Common stock (16,000 shares x P10) 160,000.00
Additional paid in capital 640,000.00
(2) To record acquisition-related costs:

Retained earnings - P Co. (Acquisition expense) 50,000.00

Cash 50,000.00

Acquistion expense is directly closed to Retained earnings of P Company since only the
statement of financial positions are being consolidated.

CONSOLIDATION PROCEDURES

1. Compute Goodwill. In accordance with IFRS 3, goowill is the excess of:

-(i)The aggregate of the acquisition date fair value (FV) of the consideration transferred,
(ii) the amount of NCI, and (iii) the fair value of the parent's previously held interest in the
subsidiary; over

-the acquisition-date fair value of the net assets acquired.

FV IMPLIED VALUE Proportionate share
Price paid ######### 800,000.00 800,000.00
Non-controlling interest (at fair value)######### 200,000.00 124,000.00
Total ######### 1,000,000.00 924,000.00
Less fair value of net assets acquired ######### 620,000.00 620,000.00
Goodwill ######### 380,000.00 304,000.00

Important notes:
- If the FV of NCI is not given, its FV may be estimated by making an assumption.
If the parent would pay P800,000.00 for an 80% interest, then it may be implied that
the entire subsidiary company is worth P1,000,000.00 (P800,000/80%), thus the NCI
is worth P200,000.00 (P1,000,000*20%). Goodwill then would be P380,000.
(P1,000,000.00-620,000.00)

-NCI may also be measured on the basis of its proportionate interest in the acquiree's
identifiable net assets . Under this option, NCI is equal to P124,000.00 (P620,000*20%).
Goodwill then would be P304,000.00 [(P800,000.00+124,000)-P620,000.00]

2. Prepare a Determination and Allocation (D&A) of excess schedule.

Fair Value Parent (80%) NCI (20%)
Fair value of subsidiary 970,000.00 800,000.00 170,000.00
Less book value of interest acquired:
Common stock 20,000.00
Additional paid in capital 180,000.00
Retained earnings 120,000.00
Total equity 320,000.00 320,000.00 320,000.00
Interest acquired 80% 20%
Book value 256,000.00 64,000.00
Excess 650,000.00 544,000.00 106,000.00
Adjustment of identifiable accounts:
Inventory(P110,000 FV - P100,000 BV) - 10,000.00
Land (P130,000 FV - P80,000 BV) - 50,000.00
Buildings (P500,000 FV - P300,000 BV) - 200,000.00
Equipment (P120,000 FV - P80,000.00 BV) - 40,000.00
Total - 300,000.00
Goodwill 350,000.00

3. Prepare Working Paper Elimination Entries based on the D&A of Excess schedule.

Eliminate subsidiary stockholders' equity against the Investment account (80%) and NCI account (20%).
E1 Common stock - S company 20,000.00
APIC - S Company 180,000.00
Retained earnings - S company 120,000.00
Investment in S company 256,000.00
Non-controlling interest (NCI) 64,000.00
Allocate excess by adjusting net assets to their FVs to Parent company and NCI based from D&A schedule.
E2 Inventory 10,000.00
Land 50,000.00
Buildings 200,000.00
Equipment 40,000.00
Goodwill 350,000.00
Investment in S company 544,000.00
Non-controlling interest (NCI) 106,000.00

4. Preparation of consolidated working paper

Notes:
-Total stockhoders' equity of S Company and the Investment account of P Company is eliminated.
-All subsdiary assets are adjusted to 100% of fair value, regardless of parent's interest.
-Total FV of NCI is P170,000.00 which is also equal to the sum of NCI share in subsidiary's equity
and NCI share in fair value adjustment of identifiable assets.

Consolidation Working Paper

P Company and S Company

Consolidation Working Paper
December 1, 2023
Eliminations and Adjustments
P Company S Company Debit Credit Consolidated
Assets
Cash 168,000.00 - 168,000.00
Accounts receivable 144,000.00 40,000.00 184,000.00
Inventory 160,000.00 100,000.00 10,000.00 270,000.00
Land 200,000.00 80,000.00 50,000.00 330,000.00
Bulding 840,000.00 300,000.00 200,000.00 1,340,000.00
Equipment 400,000.00 80,000.00 40,000.00 520,000.00
Investment in S Company 800,000.00 - 256,000.00
544,000.00 -
Goodwill - - 350,000.00 350,000.00
Total Assets 2,712,000.00 600,000.00 3,162,000.00

Liabilities and Equity

Accounts payable 160,000.00 80,000.00 240,000.00
Bonds payable 400,000.00 200,000.00 600,000.00
Common stock -
P, company 560,000.00 560,000.00
S, company 20,000.00 20,000.00 -
Additional paid in capital -
P, company 1,140,000.00 1,140,000.00
S, company 180,000.00 180,000.00 -
Retained earnings -
P, company 452,000.00 452,000.00
S, company 120,000.00 120,000.00 -

NCI to consolidated 64,000.00

106,000.00 170,000.00
Total Liabilities and Equity 2,712,000.00 600,000.00 970,000.00 970,000.00 3,162,000.00

P Company and S Company

Consolidated Statement of Financial Position
December 1, 2023

Assets
Current assets
Cash 168,000.00
Accounts receivable 184,000.00
Inventory 270,000.00
Total 622,000.00
Non-current assets
Land 330,000.00
Bulding 1,340,000.00
Equipment 520,000.00
Goodwill 350,000.00
Total 2,540,000.00
Total Assets 3,162,000.00

Liabilities and Equity

Liabilities
Accounts payable 240,000.00
Bonds payable 600,000.00
Total liabilities 840,000.00
Stockholders' equity
Common stock 560,000.00
Additional paid in capital 1,140,000.00
Retained earnings 452,000.00
Total controlling equity 2,152,000.00
Non-controlling interest 170,000.00
Total equity 2,322,000.00
Total Liabilities and Equity 3,162,000.00

Adjustment of Goodwill Applicable to NCI

Allocation of Goodwill to Parent and NCI using the case above:

Total Parent Price NCI
Fair Value 80% 20%
Company fair value 970,000.00 800,000.00 170,000.00
Fair value of net assets excluding goodwill 620,000.00 496,000.00 124,000.00
Goodwill 350,000.00 304,000.00 46,000.00

Important notes:
NCI share in Goodwill can be reduced to zero but the NCI share in FV of net assets can never be
any less than the NCI percentage amounting to P124,000.00

To illustrate, let's assume that the assessed fair value of NCI is P120,000.00 which is less than
NCI share of the FV of net assets, the value of NCI would therefore be raised to P124,000.00.
Therefore, Goodwill is allocated only to Parent, where future impairment lossed shall be allocated to
the controlling interest only (parent).
Total Parent Price NCI
Fair Value 80% 20%
Company fair value 924,000.00 800,000.00 124,000.00
Fair value of net assets excluding goodwill 620,000.00 496,000.00 124,000.00
Goodwill 304,000.00 304,000.00 -

CASE 5: ACQUISITION AT LESS THAN FAIR VALUE WITH ADJUSTMENT OF SUBSIDIARY ACCOUNTS
Using the same data, assume that P Company issued 8,000 shares of its P10 par value common stock for 80%
of the outstanding shares of S company. The fair value of P Company share is P50. P Company also pays P50,000.000
in professional fees to complete the combination.

ILLUSTRATION

P Company
Statement of Financial Position
December 1, 2020
Assets Liabilities and Equity
Current assets Liabilities
Cash 218,000.00 Accounts payable 160,000.00
Accounts receivable 144,000.00 Bonds payable 400,000.00
Inventory 160,000.00 Total Liabilities 560,000.00
Total 522,000.00
Non-current assets Stockholders' Equity
Land 200,000.00 Common stock, P10 par value 400,000.00
Building (net) 840,000.00 APIC 500,000.00
Equipment (net) 400,000.00 Retained earnings 502,000.00
Total ########## Total 1,402,000.00
Total assets ########## Total Liabilities and Equity 1,962,000.00

S Company
Statement of Financial Position
December 1, 2023

Assets Book Value Fair Value

Accounts receivable 40,000.00 40,000.00
Inventory 100,000.00 110,000.00
Land 80,000.00 130,000.00
Building (net) 300,000.00 500,000.00
Equipment (net) 80,000.00 120,000.00
Total assets 600,000.00 900,000.00

Liabilities and Equity

Accounts payable 80,000.00 80,000.00
Bonds payable 200,000.00 200,000.00
Total liabilities 280,000.00 280,000.00
Stockholders' equity:
Common stock, P1 par value 20,000.00
APIC 180,000.00
Retained earnings 120,000.00
Total equity 320,000.00

Net assets 320,000.00 620,000.00

Entry to record the acquisition of S Company stock:

Investment in S Company (8,000 shares x P50) 400,000.00

Common stock (8,000 shares x P10) 80,000.00
Additional paid in capital 320,000.00

Entry to record acquisition-related costs:

Retained earnings (P Co) 50,000.00

Cash 50,000.00

Assuming FV of NCI is not given, its implied value based on the consideration to be paid
by P company P500,000.00(P400,000.00/80%), then it will be equal to P100,000.00 which
is less than the NCI share in fair value of net assets, P124,000.00, therefore, its FV
shall be increased to P124,000.00 per computation as follows:

1. Compute goodwill or gain, if any.

Price paid 400,000.00

Non-controlling interest (at fair value) 124,000.00
Total 524,000.00
Less fair value of net assets acquired (excluding goodwill) 620,000.00
Gain on acquisition - 96,000.00

Gain is to be recognized only by the controlling interest per IFRS 3.

Total Parent Price NCI

Fair Value 80% 20%
Company fair value 524,000.00 400,000.00 124,000.00
Fair value of net assets excluding goodwill 620,000.00 496,000.00 124,000.00
Gain on acquisition - 96,000.00 - 96,000.00 -

2. Prepare D&A of Excess Schedule.

Fair Value Parent (80%) NCI (20%)

Fair value of subsidiary 524,000.00 400,000.00 124,000.00
Less book value of interest acquired:
Common stock 20,000.00
Additional paid in capital 180,000.00
Retained earnings 120,000.00
Total equity 320,000.00 320,000.00 320,000.00
Interest acquired 80% 20%
Book value 256,000.00 64,000.00
Excess 204,000.00 144,000.00 60,000.00
Adjustment of identifiable accounts:
Inventory(P110,000 FV - P100,000 BV) - 10,000.00
Land (P130,000 FV - P80,000 BV) - 50,000.00
Buildings (P500,000 FV - P300,000 BV) - 200,000.00
Equipment (P120,000 FV - P80,000.00 BV) - 40,000.00
Total - 300,000.00
Gain on acquisition - 96,000.00

3. Prepare Working Paper Elimination Entries based on the D&A of Excess schedule.

Eliminate subsidiary stockholders' equity against the Investment account (80%) and NCI account (20%).
E1 Common stock - S company 20,000.00
APIC - S Company 180,000.00
Retained earnings - S company 120,000.00
Investment in S company 256,000.00
Non-controlling interest (NCI) 64,000.00

Allocate excess by adjusting net assets to their FVs to Parent company and NCI based from D&A schedule.
E2 Inventory 10,000.00
Land 50,000.00
Buildings 200,000.00
Equipment 40,000.00
Investment in S company 144,000.00
Non-controlling interest (NCI) 60,000.00
Retained Earnings - P Company 96,000.00

4. Preparation of consolidated working paper

Notes:
-Total stockhoders' equity of S Company and the Investment account of P Company is eliminated.
-All subsdiary assets are adjusted to 100% of fair value, regardless of parent''s interest.
-Total FV of NCI is P170,000.00 which is also equal to the sum of NCI share in subsidiary's equity
and NCI share in fair value adjustment of identifiable assets.

Consolidation Working Paper

P Company and S Company

Consolidation Working Paper
December 1, 2023
Eliminations and Adjustments
P Company S Company Debit Credit Consolidated
Assets
Cash 168,000.00 - 168,000.00
Accounts receivable 144,000.00 40,000.00 184,000.00
Inventory 160,000.00 100,000.00 10,000.00 270,000.00
Land 200,000.00 80,000.00 50,000.00 330,000.00
Bulding 840,000.00 300,000.00 200,000.00 1,340,000.00
Equipment 400,000.00 80,000.00 40,000.00 520,000.00
Investment in S Company 400,000.00 - 256,000.00
144,000.00 -
Total Assets 2,312,000.00 600,000.00 2,812,000.00

Liabilities and Equity

Accounts payable 160,000.00 80,000.00 240,000.00
Bonds payable 400,000.00 200,000.00 600,000.00
Common stock -
P, company 480,000.00 480,000.00
S, company 20,000.00 20,000.00 -
Additional paid in capital -
P, company 820,000.00 820,000.00
S, company 180,000.00 180,000.00 -
Retained earnings -
P, company 452,000.00 96,000.00 548,000.00
S, company 120,000.00 120,000.00 -

NCI to consolidated 64,000.00

60,000.00 124,000.00
Total Liabilities and Equity 2,312,000.00 600,000.00 620,000.00 620,000.00 2,812,000.00

P Company and S Company

Consolidated Statement of Financial Position
December 1, 2023

Assets
Current assets
Cash 168,000.00
Accounts receivable 184,000.00
Inventory 270,000.00
Total 622,000.00
Non-current assets
Land 330,000.00
Bulding 1,340,000.00
Equipment 520,000.00
Total 2,190,000.00
Total Assets 2,812,000.00

Liabilities and Equity

Liabilities
Accounts payable 240,000.00
Bonds payable 600,000.00
Total liabilities 840,000.00
Stockholders' equity
Common stock 480,000.00
Additional paid in capital 820,000.00
Retained earnings 548,000.00
Total controlling equity 1,848,000.00
Non-controlling interest 124,000.00
Total equity 1,972,000.00
Total Liabilities and Equity 2,812,000.00