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1. Papilon Corporation acquired 90,000 shares of the 100,000 outstanding no-par ordinary share capital of Silicon Company for a price of P1,200,000 on January 1, 2011 at the time when Silicon Company had book and fair values as shown below. Papilon Corporation also paid P96,000 direct acquisition costs in the form of legal fees to outside consultants.  

Ordinary Share Capital	P480,000
Accumulated Profits	600,000
Total net assets at book value	P1,080,000
Add: Differences between current fair value and book value
Inventories (FIFO)	36,000
Property and Equipment	72,000
Total current fair value of identifiable net assets	P1,188,000

Required:

1. Prepare journal entries for Papilon Corporation on January 1, 2011 to record the acquisition of share from Silicon Company.
2. Prepare the required elimination entries in general journal form that are needed for a consolidated statements worksheet for a consolidated statement of financial position for Papilon Corporation and subsidiary on January 1, 2011

2. The following are selected account balances from Cheela Company and Jarjar Corporation as of December 31, 2018:

	Cheela	Jarjar
Revenues	P    980,000	P    560,000
Expenses	560,000	420,000
Dividend Income	84,000
Dividends Paid	112,000	84,000
Accumulated profits, 1/1/18	840,000	280,000
Current Assets	560,000	700,000
Building (net)	1,260,000	560,000
Equipment (net)	840,000	1,400,000
Investment in Jarjar Corp.	?
Liabilities	700,000	1,932,000
Ordinary Shares	840,000 (P20 par)	280,000 (P10 par)
Share Premium	210,000	112,000

On January 1, 2018, Cheela acquired all of the outstanding shares of Jarjar for P298,000 in cash and ordinary shares. Cheela also pays P24,000 in lawyers’ fees and other combination costs as well as P14,000 in share issuance costs. At the date of acquisition, Jarjar’s buildings (with a six-year remaining life) have a P616,000 book value and a fair market value of P784,000.

Required:

Prepare the consolidated statements worksheet and present all elimination entries that would have been included in the consolidated statements worksheet to prepare a full set of consolidated financial statements for the year 2018.

3. The Nathan Company acquired all of the outstanding stock of Caleb Company on January 1, 2014 for P267,800 cash. Caleb had a book value of only P182,000 on that date. However, equipment (having an eight-year life) is undervalued by P52,000 on Caleb’s financial records. A building with a 20-year life was overvalued by P13,000. Subsequent to the acquisition, Caleb reported the following:

	Net Income	Dividends Paid
2014	P 65,000	P 13,000
2015	78,000	52,000
2016	39,000	26,000

In accounting for this investment, Nathan has used the cost method. Selected accounts taken from the financial records of these two companies as of December 31, 2016, are as follows:

	Nathan Company	Caleb Company
Revenues – Operating	P403,000	P135,200
Expenses	257,400	96,200
Equipment (net)	416,000	65,000
Building (net)	286,000	88,400
Ordinary share	377,000	65,000
Accumulated profits	533,000	208,000

Required:

Determine the following account balances as of December 31, 2016.

1. Net Income Attributable to Equity Holders of the Parent
2. Non-controlling Interest in Net Income of Subsidiary
3. Consolidated Net Income
4. Consolidated Equipment (net)
5. Consolidated Buildings (net)
6. Consolidated Goodwill (net)
7. Consolidated Ordinary Shares
8. Consolidated Accumulated Profits