L3-7 Subsidiary Acquired for Cash

Fineline Pencil Company and Subsidiary

Consolidated Balance Sheet
January 2, 20X3

Cash ($200,000 - $150,000 + $50,000) $100,000

Other Assets ($400,000 + $180,000)   580,000
Total Assets $680,000

Current Liabilities ($100,000 + $80,000) $180,000

Common Stock 300,000
Retained Earnings   200,000
Total Liabilities and Stockholders' Equity $680,000

S3-29 Parent Company and Consolidated Amounts

a. Common stock of PT Timika

on December 31, 20X5 $ 90,000
Retained earnings of PT Timika
January 1, 20X5 $130,000 
Sales for 20X5 195,000 
Less: Expenses (160,000)
Dividends paid   (15,000)
Retained earnings of PT Timika
on December 31, 20X5   150,000
Net book value on December 31, 20X5 $240,000
Proportion of stock acquired by Quantum x      .80
Purchase price $192,000

b. Net book value on December 31, 20X5 $240,000

Proportion of stock held by
noncontrolling interest x      .20
Balance assigned to noncontrolling interest $ 48,000

c. Consolidated net income is $143,000. None of the 20X5 net income of PT Timika was
earned after the date of purchase and, therefore, none can be included in consolidated
net income.

d. Consolidate net income would be $178,000 [$143,000 + ($195,000 - $160,000)].

L4-9 Workpaper for Wholly Owned Subsidiary

a. Eliminating entry:

E(1) Common Stock – PT. Premium 140,000

Retained Earnings 10,000
Inventory 7,000
Buildings and Equipment (net) 12,000
Cash and Receivables 2,000
Investment in Premium Builders Stock 167,000
Eliminate investment balance.

b. PT Emas and PT. Premium

Consolidated Balance Sheet Workpaper
January 1, 20X5

  
PT.  Eliminations Consol-  
                   Item                    PT. Emas Premium     Debit        Credit       idated    

Cash and Receivables 80,000 30,000 (1) 2,000 108,000

Inventory 150,000 350,000 (1) 7,000 507,000
Buildings and
Equipment (net) 430,000 80,000 (1) 12,000 522,000
Investment in
Premium Stock  167,000              (1)167,000                                         
Total Debits 827,000 460,000 1,137,000

Current Liabilities 100,000 110,000 210,000

Long-Term Debt 400,000 200,000 600,000
Common Stock
Emas 200,000 200,000
Premium 140,000 (1)140,000
Retained Earnings 127,000 10,000 (1) 10,000 ________    127,000
Total Credits 827,000 460,000               169,000           169,000 1,137,000

c. PT. Emas and Subsidiary

Consolidated Balance Sheet
January 1, 20X5

Cash and Receivables $ 108,000   Current Liabilities $ 210,000

Inventory 507,000   Long-Term Debt 600,000
Buildings and   Common Stock $200,000
Equipment (net) 522,000   Retained Earnings   127,000    327,000
                                  Total Liabilities &
Total Assets $1,137,000    Stockholders' Equity $1,137,000
L4-10 Perhitungan Saldo konsolidasi

a Inventory $ 140,000 
.

b Land $ 60,000 
.

c. Buildings and Equipment $ 550,000 

d. Goodwill: Fair value of consideration given $ 576,000 

Book value of net assets
at acquisition $450,000 
Fair value increment for:
Inventory 20,000 
Land (10,000)
Buildings and equipment   70,000 
Fair value of net assets
at acquisition (530,000)
Balance assigned to goodwill $   46,000 

e Investasi pada PT Astor: tidak ada yang perlu dilaporkan; karena saldo pada akun
. investasi telah dieliminasi.

S4-21 Konsolidasi Laporan Posisi Keuangan

PT. Citarum and PT. Fama

Consolidated Balance Sheet Workpaper
December 31, 20X4
PT. PT. Eliminations Consol-
                 Item                       Citarum      Fama          Debit              Credit           idated   

Cash 825,000 330,000 1,155,000

Accounts and
Other Receivables 2,140,000 835,000 2,975,000
Inventory 2,310,000 1,045,000 3,355,000
Land 650,000 300,000 (2)    250,000 1,200,000
Deprec. Assets (net) 4,575,000 1,980,000 6,555,000
Investment in
PT. Fama Stock 2,680,000 (1)2,680,000
Long-Term Investments
and Other Assets 865,000 385,000 1,250,000
Differential                                     (1) 250,000 (2) 250,000                   
Total Debits 14,045,000 4,875,000 16,490,000
Accounts Payable
and Other Current
Liabilities 2,465,000 1,145,000 3,610,000
Long-Term Debt 1,900,000 1,300,000 3,200,000
Common Stock, $25 Par 3,200,000 1,000,000 (1) 1,000,000 3,200,000
Additional Paid-In
Capital 2,100,000 190,000 (1) 190,000 2,100,000
Retained Earnings   4,380,000 1,240,000 (1) 1,240,000  _________   4,380,000
Total Credits 14,045,000 4,875,000    2,930,000 2,930,000 16,490,000