Tugas

NAMA : KUKUH HARIYADI

NIM : C1C010097
MK : AKL 2


P6-3
Cost January 1, 2011 $270,000
Implied fair value of Sor ($270,000 / 90%) $300,000
Book value of Sor ( 240,000)
Excess of fair value over book value Goodwill $ 60,000

Cost January 1, 2011 $270,000
Add:Income from Sor for 2011
Equity in income ($40,000 x 90%) $36,000
Less: Unrealized inventory profit (10,000)
Less: Unrealized profit on machinery
($35,000 - $28,000) ( 7,000)
Add: Piecemeal recognition of profit
On machinery ($7,000/3.5 years x 0.5 year) 1,000
Income from Sor for 2011 20,000
Less: Dividends $10,000 x 90% ( 9,000)

Investment balance January 1, 2012 281,000
Add: Income from Sor for 2012
Equity in income ($50,000 x 90%) $ 45,000
Add: Unrealized profit in beginning inventory 10,000
Less: Unrealized profit in ending inventory (12,000)
Add: Piecemeal recognition of profit on
Machinery ($7,000/3.5 years) 2,000
Less: Gain on sale of land (5,000)
Income from Sor for 2012 40,000
Less: Dividends ($20,000 x 90%) (18,000)

Investment balance December 31, 2012 $303,000






Pal Corporation and Subsidiary
Consolidation WorkPapers
for the Year Ended December 31, 2012

in thousands
Pal Sor 90% Adjustments and
Eliminations
Consolidated
Statements
Income Statement Sales $ 450 $ 190 a 72 $ 568
Income from Sor 40 f 40
Gain on land 5 e 5
Cost of Sale

(200) (100) c 12 a 72
b 10

(230)
Operating Exp. (113) (40) d 2 (151)
Consolidated NI 187
Noncontrolling share h 5 (5)
Controlling share of NI $ 182 $ 450 $ 182

Retained Earnings
Retained earnings Pal

$ 202

$ 202
Retained earnings Sor $ 120 g 120
Controlling share of NI 182 50 182
Dividends

(150) (20) f 18
h 2

(150)
Retained earnings
December 31

$ 234

$ 150

$ 234

Balance Sheet
Cash

$ 133

$ 14

$ 147
Accounts receivable 180 100 i 10 270
Dividends receivable 18 j 18
Inventories 60 36 c 12 84
Land 100 30 e 5 125
Buildings net 280 80 360
Machinery net 330 140 d 4 466
Investment in Sor

303 b 10
d 6
f 22
g 297

Goodwill g 60 60
Total assets $ 1,404 $ 400 $ 1,512

Accounts payable $ 200 $ 50 i 10 $ 240
Dividends payable 30 20 j 18 32
Other liabilities 140 30 170
Capital stock 800 150 g 150 800
Retained earnings 234 150 234
Total equities $ 1,404 $ 400
Noncontrolling interest January 1 g 33
Noncontrolling interest December 31 h 3 36
$ 1,512



P6-6

Investment cost $ 290,000
Implied fair value of San ($290,000 / 80%) $ 362,500
Book value of San (300,000)
Excess fair value over book value $ 62,500
- allocated 50% to Patents with a ten-year life ($31,250)
- allocated 50% to Inventory sold in 2009 ($31,250)

Reconciliation of income from San:
Pils share of Sans net income ($50,000 80%) $ 40,000
Less: 80% of Patent amortization ($31,250/10 years) (2,500)
Add: Depreciation on deferred gain on equipment
($15,000/5 years) 80% 2,400
Less: Unrealized profit on upstream sale of land ($10,000 80%) (8,000)
Income from San $ 31,900

Reconciliation of investment account:
Share of Sans underlying equity ($400,000 80%) $ 320,000
Add: 80% of Unamort. patent ($31,250 - ($3,125 3 years)) x 80% 17,500
Less: Unrealized gain on equipment
[$15,000 - ($3,000 2 years)] 80% (7,200)
Less: Share of unrealized gain on land (8,000)
Investment in San December 31, 2011 $ 322,300

Noncontrolling interest share:
Sans reported income $ 50,000
Add: Piecemeal recognition of gain on sale of machinery 3,000
Less: Patent amortization ( 3,125)
Less: Unrealized gain on upstream sale of land (10,000)
Realized income 39,875
Noncontrolling percentage 20%
Noncontrolling interest share $ 7,975

Pil Corporation and Subsidiary
Consolidation WorkPapers
for the year ended December 31, 2011

Pil San 80% Adjustments and
Eliminations
Consolidated
Statements
Income Statement Sales $ 210,000 $ 130,000 $ 340,000
Income from San 31,900 c 31,900
Gain on land 10,000 b 10,000
Depresiation Exp. (40,000) (30,000) a 3,000 (67,000)
Other Exp. (110,000) (60,000) e 3,125 (173,125)
Consolidated NI 99,875
Noncontrolling share f 7,975 (7,975)
Controlling share of NI $ 91,900 $ 50,000 $ 91,900

Retained Earnings
Retained earnings Pil

$ 140,400

$ 140,400
Retained earnings San $ 50,000 d 50,000
Controlling share of NI 91,900 50,000 91,900
Dividends (30,000) (30,000)
Retained earnings
December 31

$ 202,300

$ 100,000

$ 202,300

Balance Sheet
Current Assets

$ 200,000

$ 170,000

$ 370,000
Plant Assets

550,000 350,000 a 15,000
b 10,000
875,000
Accumulated Dep. (120,000) (70,000) a 6,000 (184,000)
Investment in San

322,300 a 9,600

c 31,900
d 300,000

Patent d 25,000 e 3,125 21,875
$ 952,300 $ 450,000 $ 1,082,875

Curent Liabilty $ 150,000 $ 50,000 $ 200,000
Capital stock 600,000 300,000 d 300,000 600,000
Retained earnings 202,300 100,000 202,300
$ 952,300 $ 450,000

Noncontrolling interest January 1 a 2,400 d 75,000
Noncontrolling interest December 31 f 7,975 80,575
$ 1,082,875


Consolidation workpaper entries
a. Accumulated depreciation 6,000
Investment in San 9,600
Noncontrolling interest 2,400
Depreciation expense 3,000
Plant assets 15,000
To eliminate unrealized profit on 2010 sale of plant assets and reduce plant assets to cost.

b. Gain on land 10,000
Plant assets 10,000
To eliminate unrealized gain on 2011 upstream sale of land and reduce plant assets to cost.

c. Income from San 31,900
Investment in San 31,900
To eliminate income from San and adjust investment to beginning of period.

d. Capital stockSan 300,000
Retained earningsSan January 1 50,000
Patent 25,000
Investment in San 300,000
Noncontrolling interest January 1 75,000
To eliminate investment in San and stockholders equity of San and enter beginning of the period
patent.

e. Other expenses 3,125
Patent 3,125
To provide for patent amortization.

f. Noncontrolling Interest Share 7,975
Noncontrolling Interest 7,975
To enter noncontrolling interest share of subsidiary income.

P6-7
(in thousands)
Investment cost for 100% of Ski, April 1, 2011 $ 15,000
Book value acquired (7,000)
Excess fair value over book value $ 8,000

Excess allocated:
Undervalued inventory items (sold in 2011) $ 500
Undervalued buildings (7-year remaining useful life) 3,500
Goodwill 4,000
Excess fair value over book value $ 8,000

Reconciliation of investment account balance:
Investment cost April 1, 2011 $ 15,000
Add: Increase in Skis retained earnings 3,000
Less: Excess allocated to inventories sold in 2011 (500)
Less: Depreciation on excess allocated to buildings
($3,500/7 years) 4.75 years (2,375)
Less: Unrealized inventory profits December 31, 2015 (120)
Less: Unrealized profit on equipment
($800 intercompany profit - $200 recognized) (600)
Investment balance December 31, 2015 $ 14,405

Reconciliation of investment income balance:
Share of Skis income (100%) $ 2,000
Add: Unrealized profit in beginning inventory 100
Add: Realization of previously deferred profit on land 500
Less: Unrealized profit in ending inventory (120)
Less: Depreciation on excess allocated to buildings (500)
Less: Unrealized profit on equipment (600)
Income from Ski $ 1,380

Pot Corporation and Subsidiary
Consolidation WorkPapers
for the Year Ended December 31, 2015

in thousands
Pal Sor 90% Adjustments and
Eliminations
Consolidated
Statements
Income Statement Sales $ 26,000 $ 11,000 b 1,800 $ 35,500
Income from Ski 700 a 500 1,200
Gain on land 800 e 800
Gain on Equipment 1,380 g 1,380
Cost of Sale

(15,000) (5,000) d 120 b 1,500
c 100
(18,520)
Depresiation Exp. (3,700) (2,000) i 500 f 200 (6,000)
Other Exp. (4,280) (2,800) (7,080)
Consolidated NI $ 5,100 $ 2,000 $ 5,100

Retained Earnings
Retained earnings Pot

$ 12,375

$ 12,375
Retained earnings Ski $ 4,000 h 4,000
Consolidated NI 5,100 2,000 5,100
Dividend (3,000) (1,000) g 1,000 (3,000)
Retained earnings
December 31

$ 14,475

$ 5,000

$ 14,475

Balance Sheet
Cash

$ 1,170

$ 500



$ 1,670
Accounts receivable 2,000 1,500 j 300 3,200
Inventories 5,000 2,000 d 120 6,880
Land 4,000 1,000 5,000
Buildings net 15,000 4,000 h 1,625 i 500 20,125
Equipment net 10,000 4,000 f 200 e 800 13,400
Investment in Ski

14,405 a 500
c 100
g 380
h 14,625

Goodwill h 4,000 4,000
Total assets $ 51,575 $ 13,000 $ 54,275

Accounts payable $ 4,100 $ 1,000 j 300 $ 4,800
Other liabilities 7,000 2,000 9,000
Capital stock 26,000 5,000 h 5,000 26,000
Retained earnings 14,475 5,000 14,475
$ 51,575 $ 13,000 $ 54,275