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Problem 4-5 PT.

P and SUBSIDIARY
WORK SHEETS CONSOLIDATED
Cost of Investment 500,000 FOR THE END YEAR DEC, 31 2006
BV of equity 600,000 x 70% 420,000 IN THOUSANDS
Excess of Cost Invest to BV 80,000 70% Adjustment & Noncontroling BS
DESCRIPTION PT. P
PT. S Elimination Interest Consolidated
Income Statement
Sales 800 700 1500
Part of PT.P to net income PT.S (100.000 x 70%) 70,000 Income from S 55 0 a) 55 0
Excess Amostization alocated to: Age Gain from sales equip 10 0 10
Inventory 5,000 x 100% 5,000 COGS (300) (400) c) 5 (705)
Building 14,000 : 7 Th 2,000 d) 2
Equipment 21,000 : 3 Th 7,000 Depre. Exp (155) (60) e) 7 (225)
Goodwill 40,000 : 40 Th 1,000 f) 1
Income from PT. S 55,000 Other Exp (160) (140) (300)
Noncontrolling Interest Exp
(100.000x30%) i) (30) (30)
31/12/2001 Investment in PT.S 55,000 Net Income 250 100 250
Income from PT.S 55,000 Retained Earning
RE-P 300 300
RE-S 100 b) 100 0
PT P record journal entry on Dec, 31 2006 Net Income 250 100 250
Dividen (200) (50) a) 35 i) 15 (200)
a) Income in S 55,000 RE ending 350 150 350
Dividen 35,000 Assets
Investment in S 20,000 Cash 86 60 146
A/R-net 100 70 i) 10 160
b) RE-S 100,000 A/R Deviden 14 0 h) 14 0
CS-S 500,000 Inventory 150 100 250
Unamortized Excess 80,000 Other Current Assets 70 30 100
Investment in S 500,000 Land 50 100 150
Noncontroling interest 180,000 Building-net 140 160 c) 14 d) 2 312
Equipment-net 570 330 c) 21 e) 7 914
c) COGS 5,000 a) 20
Building-net 14,000 Investment in S 520 b) 500 0
Equipment-net 21,000 GW c) 40 f) 1 39
GW 40,000 Unamortized Excess b) 80 c) 80 0
Unamortized Excess 80,000 Total Assets 1700 850 2071
Liabilities & equity
d) Depreciation Exp 2,000 A/P 200 85 h) 10 275
Building 2000 Dividen Payable 100 20 i) 14 106
Other Liabilities 50 95 145
e) Depreciation Exp 7,000 CS 1000 500 b) 500 1000
Equipment 7,000 RE 350 150 350
Total Liabilities & Equity 1700 850
f) Amortization Exp 1,000 Noncontrolling Interest beginning b) 180
GW 1,000 Noncontrolling Interest ending 195 195
Total Liabilities & Equity Consolidated 2071
g) Dividen Payable 14,000
Dividen receivable 14,000

h) A/P 10,000
A/R 10,000

i)Noncontroling Int. Exp 30,000


Dividen S 15,000
Noncontroling Int 15,000