NAMA : DIAN SARI

NIM. : A031171703

Tugas Akuntansi Keuangan Lanjutan II

Solution P4-6

Supporting computations

Ownership percentage 13,500/15,000 shares = 90%

Investment cost (13,500 shares $15) $202,500

Book value acquired ($165,000 90%) 148,500

Excess cost over book value acquired $ 54,000

Excess allocated to

Land $ 14,000

Remainder to patents 40,000

Excess cost over book value acquired $ 54,000

Income from Syn:

Pen’s share of Syn’s income ($24,000 90%) $ 21,600

Less: Patents amortization 4,000

Income from Syn $ 17,600

Investment in Syn December 31, 2012:

Cost January 1, 2011 $202,500

Pen’s share of the change in Syn’s retained earnings

($42,000 - $15,000) 90% 24,300

Less: Patents amortization for 2 years (8,000)

Investment in Syn December 31, 2012 $218,800

 Pen Corporation and Subsidiary

Consolidation Working Papers

for the year ended December 31, 2012

Adjustments and Consolidated

Pen 90% Syn Eliminations Statements

Income Statement
Sales $ 400,000 $ 100,000 $ 500,000
Income from Syn 17,600 17,600
Cost of sales 250,000* 50,000* 300,000*
Other expenses 100,600* 26,000* 4,000 130,600*
Noncontrolling expense 2,400 2,400*
Net income $ 67,000 $ 24,000 $ 67,000

Retained Earnings
Retained earnings — Pen $ 177,000 $ 177,000
Retained earnings — Syn $ 34,000 34,000
Net income 67,000 24,000 67,000
Dividends 50,000* 16,000* 14,400
1,600 50,000*
Retained earnings
December 31 $ 194,000 $ 42,000 $ 194,000

Balance Sheet
Cash $ 18,000 $ 15,000 $ 33,000
Accounts receivable 80,000 20,000 5,000 95,000
Dividends receivable 7,200 7,200
Inventories 95,000 10,000 105,000
Note receivable — Pen 5,000 5,000
Investment in Syn 218,800 3,200
215,600
Land 65,000 30,000 14,000 109,000
Buildings — net 170,000 80,000 250,000
Equipment — net 130,000 50,000 180,000
 Adjustments and Consolidated

Pen 90% Syn Eliminations Statements

Patents 36,000 4,000 32,000

$ 784,000 $ 210,000 $ 804,000
Accounts payable $ 85,000 $ 10,000 5,000 $ 90,000
Note payable to Syn 5,000 5,000
Dividends payable 8,000 7,200 800
Capital stock 500,000 150,000 150,000 500,000
Retained earnings 194,000 42,000 194,000
$ 784,000 $ 210,000
Noncontrolling interest January 1 18,400
Noncontrolling interest December 31 800 19,200
$ 804,000
* Deduct