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Soal 3

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70 views

Soal 3

Uploaded by

nara kim
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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The separate trial balance for Poe and Saw its 90 percent owned subsidiary for the year

ended 2014 is as follows:

Debits Poe Saw


Cash $ 700 $ 600
Account receivable 1,000 400
Interest receivable - 25
Inventory 1,100 700
Land 1,900 800
Equipment - net 1,100 1,400
Building - net 2,000 1,400
Investment in Poe bonds - 460
investment in Saw 3,600 -
Cost of sales 2,800 2,400
Interest expense 100 -
Other expenses 1,100 700
Dividends 300 100
Total $ 15,700 $ 8,985

Credits
Account payable $ 1,300 $ 1,000
Interest payable 50 -
10 percent bonds payable 1,000 -
Common stock 5,000 2,000
Retained earnings 3,380 2,085
Sales 4,800 3,700
Gain on sale of land - 200
Gain on sale of equipment 100 -
Interest income 70 -
Total $ 15,700 $ 8,985

Additional information

1. Poe acquired Saw when the book value of its net identifiable assets equal to the fair value
2. Intercompany merchandise sale during 2014 by Poe to Saw was $800.000 with
unrealized profit of $100.000 remained in the ending inventory
3. Poe purchased land from Saw with book value of $800.000 for $1.000.000 in 2014. Poe
holds the land until 2015
4. Saw purchased equipment from Poe for $700.000 on December 31, 2014. The gain
from selling this equipment was $100.000
On January 1, 2014 Saw purchased half of Poe 10 percent outstanding bonds that were
originally issued at par for $440.000. The bonds will mature on January 1, 2017. The bonds
paid interest every January 1 and July 1

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