AKUNTANSI

KEUANGAN LANJUTAN
1
2018
CHAPTER 4: CONSOLIDATION OF WHOLLY-OWNED SUBSIDIARIES ACQUIRED AT
MORE THAN BOOK VALUE

Targaryen Corporation acquired 100 percent ownership of Baratheon Company on January 1, 20X8,
for $128,000. At that date, the fair value of Baratheon Co.’s building and equipment was $20,000
more than book value. Buildings and equipment are depreciated on a 10-year basis. Although
goodwill is not amortized, the management of Targaryen Corp. concluded on December 31, 20X8
that goodwill involved in its acquisition of Baratheon Co. shares has impaired and the correct
carrying value was $2,500. No additional impairment occured in 20X9. Trial balance data for
Targaryen Corp. and Baratheon Co. on December 31, 20X9, are as follows:

Targaryen Corporation Baratheon Company

Item
Debit Credit Debit Credit
Cash 45,500 32,000
Accounts Receivable 85,000 14,000
Inventory 97,000 24,000
Land 50,000 25,000
Buildings and Equipment 350,000 150,000
Investment in Baratheon Co. Stock 142,500
Cost of Goods Sold 145,000 114,000
Wage Expense 35,000 20,000
Depreciation Expense 25,000 10,000
Interest Expense 12,000 4,000
Other Expenses 23,000 16,000
Dividends Declared 30,000 20,000
Accumulated Depreciation 170,000 50,000
Accounts Payable 51,000 15,000
Wages Payable 14,000 6,000
Notes Payable 150,000 50,000
Common Stock 200,000 60,000
Retained Earnings 131,000 48,000
Sales 290,000 200,000
Income from Subsidiary 34,000
TOTAL 1,040,000 1,040,000 429,000 429,000
Required
a. Give all eliminating entries needed to prepare a three-part consolidation worksheet as of
December 31, 20X9.
b. Prepare a three-part consolidation worksheet for 20X9 in a good form.
JAWABAN:
a)
Record Targaryen Corp.’s 100% share of Baratheon Co.’s 20X9 income:
Investment in Baratheon Co. Stock 36,000
Cash 36,000
Record Targaryen Corp.’s 100% share of Baratheon Co.’s 20X9 dividend:
Cash 20,000
Investment in Baratheon Co. Stock 20,000
Record amortization of excess acquisition price:
Income from Subsidiary 2,000
Investment in Baratheon Co. Stock 2,000
Book Value Calculation Total BV C/S R/E
Original BV 108,000 60,000 48,000
+ Net Income 36,000 36,000
- Dividend (20,000) (20,000)
Ending Book Value 124,000 60,000 64,000

Excess Value (Differential) Total BV B&E Acc. Depr. Goodwill

Calculation
Original BV 20,500 20,000 (2,000) 2,500
Changes (2,000) (2,000)
Ending BV 18,500 20,000 (4,000) 2,500
ELIMINATING ENTRIES
Basic Elimination Entry:
C/S 60,000
R/E 48,000
Income from Subs 36,000
Dividend Declared 20,000
Investment in Baratheon 124,000
Amortized excess value reclassification entry:
Depreciation Exp 2,000
Income from Subs 2,000
Excess value (differential) reclassification entry:
Building & Equipment 20,000
Goodwill 2,500
Acc Depr 4,000
Investment in Baratheon 18,500

b)

Targaryen Baratheon Elimination Entries

Consolidated
Corp. Co. DR CR
Income Statement
Sales 290.000 200.000 490.000
Less: COGS -145.000 -114.000 -259.000
Less: Wage Expense -35.000 -20.000 -55.000
Less: Depreciation Expense -25.000 -10.000 2.000 -37.000
Less: Interest Expense -12.000 -4.000 -16.000
Less: Other Expenses -23.000 -16.000 -39.000
Income from Subsidiary 34.000 36.000 2.000 0
Net Income 84.000 36.000 84.000

Statement of Retained
Earnings
Beginning Balance 131.000 48.000 48.000 131.000
Net Income 84.000 36.000 84.000
Less: Dividends Declared -30.000 -20.000 20.000 -30.000
Ending Balance 185.000 64.000 185.000
Balance Sheet
Cash 45.500 32.000 77.500
Accounts Receivable 85.000 14.000 99.000
Inventory 97.000 24.000 121.000
Land 50.000 25.000 75.000
Buildings & Equipment 350.000 150.000 20.000 520.000
Less: Accumulated
-170.000 -50.000 4.000 -224.000
Depreciation
Investment in Baratheon Co. 142.500 124.000
18.500 0
Goodwill 2.500 2.500
Total Assets 600.000 195.000 671.000

Accounts Payable 51.000 15.000 66.000

Wages Payable 14.000 6.000 20.000
Notes Payable 150.000 50.000 200.000
Common Stock 200.000 60.000 60.000 200.000
Retained Earnings 185.000 64.000 185.000
Total Liabilities & Equity 600.000 195.000 168.500 168.500 671.000
CHAPTER 5: CONSOLIDATION OF LESS-THAN-WHOLLY-OWNED SUBSIDIARIES
ACQUIRED AT MORE THAN BOOK VALUE

Hartanto Corporation acquired 70 percent of Palupi Corporation’s common stock on December

31, 20X4, for $102,200. At that date, the fair value of the non-controlling interest was $43,800.
Data from the balance sheets of the two companies included the following amounts as of the date
of acquisition:

Item Hartanto Corporation Palupi Corporation

Cash $ 50,300 $ 21,000
Accounts Receivable 90,000 44,000
Inventory 130,000 75,000
Land 60,000 30,000
Buildings & Equipment 410,000 250,000
Less: Accumulated Depreciation (150,000) (80,000)
Investment in Palupi Corporation Stock 102,200
Total Assets $692,500 $340,000
Accounts Payable $152,500 $ 35,000
Mortgage Payable 250,000 180,000
Common Stock 80,000 40,000
Retained Earnings 210,000 85,000
Total Liabilities & Stockholders’ Equity $692,500 $340,000

At the date of the business combination, the book values of Palupi’s assets and liabilities
approximated fair value except for inventory, which had a fair value of $81,000, and buildings
and equipment, which had a fair value of $185,000. At December 31, 20X4, Hartanto reported
accounts payable of $12,500 to Palupi, which reported an equal amount in its accounts receivable.

Required
(1). Give the elimination entry or entries needed to prepare a consolidated balance sheet
immediately following the business combination.
(2). Prepare a consolidated balance sheet worksheet.

JAWABAN:
(1)
 a. Equity Method Entries on Hartanto Corp.’s Books:
Investment in Palupi Corp. 102,200
Cash 102,200
b. Book Value Calculations
NCI 30% + Hartanto Corp. 70% = Common Stock + Retained Earnings

Ending book value 37,500 87,500 40,000 85,000

c. Basic Elimination Entry:

Common Stock 40,000
Retained Earnings 85,000
Investment in Palupi Corp. 87,500
NCI in NA of Palupi Corp. 37,500
d.
NCI 30% + Hartanto Corp. 70% = Inventory + Buildings & Equipment

Ending book value 6,300 14,700 6,000 15,000

Excess value (differential) reclassification entry:

Inventory 6,000
Buildings & Equipment 15,000
Investment in Palupi Corp. 14,700
NCI in NA of Palupi Corp. 6,300

e. Eliminate intercompany accounts:

Accounts Payable 12,500
Accounts Receivable 12,500
Accumulated Depreciation 80,000
Building & Equipment 80,000
(2). . Elimination Entries
Hartanto Corp. Palupi Corp. DR CR Consolidated

Balance Sheet
Cash 50,300 21,000 86,000
Accounts Receivable 90,000 44,000 12,500 121,500
Inventory 130,000 75,000 6,000 211,000
Land 60,000 30,000 90,000
Buildings & Equipment 410,000 250,000 15,000 80,000 595,000
Less: Acc. Depreciation (150,000) (80,000) 80,000 (150,000)
Investment in Palupi Corp. 102,200 87,500 0
14,700
Total Assets 692,500 340,000 101,000 194,700 938,800

Accounts Payable 152,500 35,000 12,500 175,000

Mortgage Payable 250,000 180,000 430,000
Common Stock 80,000 40,000 40,000 80,000
Retained Earnings 210,000 85,000 85,000 210,000
NCI in NA of Palupi Corp. 37,500 43,800
6,300
Total Liabilities & Equity 692,500 340,000 137,500 43,800 938,800
CHAPTER 6: INTERCOMPANY TRANSACTIONS

Tamaria Corporation holds 60 percent ownership of Anggara Company. Each year, Anggara
purchases large quantities of a gnarl root used in producing health drinks. Anggara purchased
$150,000 of roots in 20X7 and sold $40,000 of these purchases to Tamaria for $60,000. By the
end of 20X7, Tamaria had resold all but $15,000 of its purchase from Anggara. Tamaria
generated $90,000 on the sale of roots to various health stores during the year.

Required:
a. Give the journal entries recorded by Tamaria and Anggara during 20X7 relating to the initial
purchase, intercorporate sale, and resale of gnarl roots.
b. Give the worksheet elimination entries needed as of December 31, 20X7, to remove all
effects of the intercompany transfer in preparing the 20X7 consolidated financial statements.

JAWABAN:
a.
Journal entries recorded by Anggara Company:
(1) Inventory 150,000
Cash (Accounts Payable) 150,000
Record purchases from nonaffiliated.

(2) Cash (Accounts Receivable) 60,000

Sales 60,000
Record sale to Tamaria Corporation.

(3) Cost of Goods Sold 40,000

Inventory 40,000
Record cost of goods sold to Tamaria Corporation.

Journal entries recorded by Tamaria Corporation:

(1) Inventory 60,000
Cash (Accounts Payable) 60,000
Record purchases from Anggara Company.

(2) Cash (Accounts Receivable) 90,000

Sales 90,000
Record sale of items to nonaffiliated.

(3) Cost of Goods Sold 45,000

Inventory 45,000
Record cost of goods sold.
(4) Income from Tamaria 5,000
Investment in Tamaria 5,000
Eliminate unrealized gross profit on inventory purchases from Tamaria.

b. Eliminating entry:
Total = Re-sold + Ending Inventory
Sales 60,000 45,000 15,000
COGS 40,000 30,000 10,000
Gross Profit 20,000 15,000 5,000
Gross Profit % 33.33%

Sales 60,000
Cost of Goods Sold 55,000
Inventory 5,000
Eliminate intercompany sale of inventory.
CHAPTER 7: INTERCOMPANY TRANSFER OF NONCURRENT ASSETS & SERVICES

Paprika Corp. acquired 70% of Salad Inc. voting common stock on January 1, 2013, for $158,900.
Salad reported common stock outstanding of $100,000 and retained earnings of $85,000. The fair
value of NCI was $68,100 at the date of acquisition. Buildings and equipment held by Salad had
a fair value $25,000 higher than book value. The remainder of the differential was assigned to a
copyright held by Salad. Buildings and equipment had a 10-year remaining life and copyright had
a 5-year life at the date of acquisition.
Trial balance for Paprika and Salad on December 31, 2015 are as follows:
Paprika Salad
Debit Credit Debit Credit
Cash $ 15,850 $ 58,000
Accounts Receivable $ 65,000 $ 70,000
Interest & Other Receivables $ 30,000 $ 10,000
Inventory $ 150,000 $ 180,000
Land $ 80,000 $ 60,000
Building & Equipment $ 315,000 $ 240,000
Bond Discount $ 15,000
Investment in Salad's Stock $ 157,630
COGS $ 375,000 $ 110,000
Depretiation Expense $ 25,000 $ 10,000
Interest Expense $ 24,000 $ 33,000
Other Expense $ 28,000 $ 17,000
Dividends Declared $ 30,000 $ 5,000
Accumulated Depretiation $ 120,000 $ 60,000
Accounts Payable $ 61,000 $ 28,000
Other Payable $ 30,000 $ 20,000
Bonds Payable $ 250,000 $ 300,000
Common Stock $ 150,000 $ 100,000
APIC $ 30,000
Retained Earnings $ 165,240 $ 100,000
Sales $ 450,000 $ 190,400
Other Income $ 28,250
Gain on sale of equipment $ 9,600
Income from Salad $ 10,990
Total $ 1,295,480 $ 1,295,480 $ 808,000 $ 808,000

Paprika sold land it had purchased for $21,000 to Salad on September 20, 2014 for $32,000. Salad
plans to use the land for future plant expansion. On January 1, 2015, Salad sold equipment to
Paprika for $91,600. Salad purchased the equipment on January 1, 2013 for $100,000 and
depreciated it on a 10-year basis, including an estimated residual value of $10,000. The residual
value and estimated economic life of the equipment remained unchanged as a result of the transfer
and both companies use straight-line method. Assume Paprika uses the fully adjusted method.
Required:
a) Compute the amount of income assigned to non-controlling interest in the consolidated income
statement for 2015.
b) Give all elimination entries needed to prepare a full set of consolidated financial statements at
December 31, 2015.

JAWABAN:
FV of Paprika’s Consideration $ 158,900
FV of NCI $ 68,100
Total FV of Consideration $ 227,000
BV of Salad $ 185,000
Differential $ 42,000

Allocation of Differential
Buildings & Equipment $ 25,000
Copyright $ 17,000
a) NCI in NI of Salad
Salad’s Net Income $ 30,000
Deferral of gain on sale of $ (9,600)
equipment
Realized gain in 2015 $ 1,200 $ (8,400)
Amortization of Differential
Depreciation Expense $ (2,500)
Amortization Expense $ (3,400)
Realized Income $ 15,700
NCI Ownership 30%
NCI in NI of Salad $ 4,710

b) Elimination Entries
NCI Paprika C/S R/E
Original BV $ 60,000 $ 140,000 $ 100,000 $ 100,000
Add: Net Income $ 9,000 $ 21,000 $ 30,000
Less: Dividend $ (1,500) $ (3,500) $ (5,000)
Ending BV $ 67,500 $ 157,500 $ 100,000 $ 125,000
Deferred Gain Calculation

Total Paprika NCI

Upstream sale of asset $ (9.600) $ (6.720) $ (2.880)
Extra Depretiation $ 1.200 $ 840 $ 360
Total $ (8.400) $ (5.880) $ (2.520)

Basic Elimination Entry

C/S $ 100,000
R/E $ 100,000
Income from Salad $ 15,120
NCI in NI of Salad $ 6,480
Dividends Declared $ 5,000
Investment in Salad $ 151,620
NCI in NA of Salad $ 64,980

Differential Calculation
Buildings &
NCI Paprika Equipment Copyright Acc. Depr
01-Jan-13 $ 12.600 $ 29.400 $ 25.000 $ 17.000
Changes $ (1.770) $ (4.130) $ (3.400) $ (2.500)
01-Jan-14 $ 10.830 $ 25.270 $ 25.000 $ 13.600 $ (2.500)
Changes $ (1.770) $ (4.130) $ (3.400) $ (2.500)
01-Jan-15 $ 9.060 $ 21.140 $ 25.000 $ 10.200 $ (5.000)
Changes $ (1.770) $ (4.130) $ (3.400) $ (2.500)
31-Des-15 $ 7.290 $ 17.010 $ 25.000 $ 6.800 $ (7.500)

Excess Value Reclassification

Buildings & Equipment $ 25,000
Copyright $ 6,800
Acc Depr $ 7,500
Investment in Salad $ 17,010
NCI in NA of Salad $ 7,290

Amortized Excess Value Reclassification

Depreciation Exp $ 2,500
Amortization Exp $ 3,400
Income from Salad $ 4.130
NCI in NI of Salad $ 1,770

Eliminate Gain on Sale of Land

Investment in Salad $ 11,000
Land $11,000

Eliminate Gain on Sale of Equipment

Accumulated Depreciation $ 1,200
Depreciation Expense $ 1,200
Equipment $ 8,400
Gain on Sale of Equipment $ 9,600
Acc Depr $ 18,000