Philips has a 50% joint operation interest in Josef. Based on the following information, what amount will be presented for current assets on Philips' proportionately consolidated balance sheet? $$\begin{array} { | l | r | r | }
\hline & \text { Philips } & \text { Josef } \
\hline \text { Current assets } & \$ 500 & \$ 550 \
\hline \text { Long-term assets } & 300 & 50 \
\hline \text { Investment in investee } & 200 & 0 \
\hline \text { Current liabilities } & 350 & 200 \
\hline \text { Long-term liabilities } & 450 & 300 \
\hline \text { Equity } & 200 & 100 \
\hline
\end{array}$$
A)$500
B)$550
C)$775
D)$1,050

Question

Philips has a 50% joint operation interest in Josef. Based on the following information, what amount will be presented for current assets on Philips' proportionately consolidated balance sheet? $$\begin{array} { | l | r | r | } 
\hline & \text { Philips } & \text { Josef } \
\hline \text { Current assets } & \$ 500 & \$ 550 \
\hline \text { Long-term assets } & 300 & 50 \
\hline \text { Investment in investee } & 200 & 0 \
\hline \text { Current liabilities } & 350 & 200 \
\hline \text { Long-term liabilities } & 450 & 300 \
\hline \text { Equity } & 200 & 100 \
\hline
\end{array}$$
A)$500
B)$550
C)$775
D)$1,050

Quizplus · Accepted Answer

Current assets on Philips' proportionately consolidated balance sheet will include 50% of Josef's current assets, which is $550 x 50% = $275. Adding Philips' own current assets of $500, the total current assets presented on the proportionately consolidated balance sheet will be $775.

Philips Has a 50% Joint Operation Interest in Josef A)$500 B)$550 C)$775 D)$1,050

Philips Has a 50% Joint Operation Interest in Josef A)$500
B)$550
C)$775
D)$1,050