Adjustment &

Cesar Palace Eliminations Consolidated

Statements
Debits Credits
Incomes Statements
Sales $331,900 $48,000 $379,900
Income from Palace $9,100 $9,100 $0
Cost of Goods Sold ($148,000) ($25,000) ($173,000)
Operating Expenses ($72,000) ($8,000) $2,000 ($82,000)
Noncontrolling Interest Share $3,900 ($3,900)
Controlling Share of Net Incomes $121,000 $15,000 $121,000
Retained Earnings Statement
Retained Earnings - Beginning $846,000 $80,000 $80,000 $846,000
Net Incomes $121,000 $15,000 $121,000
Dividend ($9,000) ($4,000) $2,800 ($9,000)
$1,200
Retained Earnings - Ending $958,000 $91,000 $958,000
Balance Sheet
Cash $135,000 $64,000 $199,000
Receivables - Net $227,000 $160,000 $387,000
Inventories $316,000 $86,000 $402,000
Land $80,000 $40,000 $120,000
Plant & Equipment - Net $469,000 $230,000 $699,000
Investment in Palace $146,300 $146,300 $0
Customer List $10,000 $2,000 $8,000
Goodwill $90,000 $90,000
Total Assets $1,373,300 $580,000 $1,905,000
Account Payable $305,300 $469,000 $774,300
Other Liabilities
Capital Stock $110,000 $20,000 $20,000 $110,000
Other Paid-In Capital
Retained Earnings $958,000 $91,000 $958,000
Noncontrolling Interest - Beginning $60,000
Noncontrolling Interest - End $2,700 $62,700
Total Equities $1,373,300 $580,000 $215,000 $215,000 $1,905,000
 70% 140000
100% 200000

Income from Palace $15,000 Amortization from customer list

Interest 70% $10,000 useful life 5 years
Cesar will record income $10,500 $2,000 amortization per-year
1,400 1,400 amortization 70% interest of Ces
Income from Palace $9,100

Debit Credit
Eliminasi income dan dividend controlling ineterest
Journal
Income from palace $9,100
Dividend $2,800
Investment in palace $6,300

Eliminasi income dan dividend non controlling interest 30%

Journal
Noncontrolling interest share $3,900
Dividend $1,200
Noncontrolling interest $2,700
Eliminasi Subsidiary equity, elimanasi investment yang dicatatkan induk perusahaan
Journal
Retained earnings $80,000
Capital Stock $20,000
Customer list $10,000
Goodwill $90,000
Investment in palace $140,000
Noncontrolling interest $60,000

$200,000 $200,000

Record amortization from customer list

Journal
Depreciation expense $2,000
Customer list $2,000
 Investment $140,000
n from customer list Income from subs $9,100
useful life 5 years Dividend from subs $2,800
amortization per-year Investment year end $146,300
amortization 70% interest of Cesar

Income from Palace $15,000

non controlling Interest 30%
record income $4,500
600
Income from Palace (non-controlli $3,900
$140,000 investment paid for 70%

$110,000 asset/equity acquired 100% fair value

$90,000 goodwill

$200,000 implies fair value from Palace 100%