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Pony Corporation purehased all he common ghares of Short Company en Janu;
2013 for PLS0,000, On that date, the book vale of the net assets Anne by Shon
Company was P1S0,000. The entite excess was assigned to depreciable assets With
6-year remaining coonomic life fom January 1, 2013.
The adjusted trial balances for the (wo companies on December 31, 2013, ate ag
follows:
en a ga
Pony Corporation Short Company
Debit Credit Debit Credit
Cash P 15,000 P 5,000
30,000 40,000
70,000 60,000
325,000 225,000
180,000
25,000 15,000
105,000 75,000
40,000 10,000
P 50,000 P 40,000
mie 100,000 120,000
enon Stork 200,000 100,000
Retained Earn 730,000 500
Sales 200,000 Log
Dividend Income _ 10,000
10,000 fe Re
, as
ee PEN 2885000 Besqonn pene
- = Seer eee
Pony Corporation uses the vost methad inazeonming, for its investmentin Short Compa
Short Company dividends were declared and paid on December 31, 2013.
Required;
a. Prepare the eliminating: wii)
consolidation workpapes.
e Prepare a three-part consolidation workoaperas af December’ t 2013
Tes reeled as oF December at, 2012 to complete?