P9-2 Prezo Satz Dr Cr NCI Consolidation

Sales 2,680,000 1,860,000 4,540,000

Equity in subsidiary income 337,177 a 337,177 -
Other income 266,000 120,000 f 900 370,957
h 12,000
e 2,143
expenses (2,678,000) (1,580,000) h 12,000 (4,246,000)
Constructive gain on bonds c 6,300 21,300
d 15,000
NCI in consolidated net income 81,080 (81,080)
Net income 605,177 400,000 352,220 - 33,300 81,080 605,177 -
Beg.R/E 1 jan 2012 480,000 300,000 b 300,000 480,000 -
Net income 605,177 400,000 352,220 - 33,300 81,080 605,177
dividends declared (250,000) (150,000) a 120,000 (30,000) (250,000)

R/E 31 Dec 2012 835,177 550,000 652,220 - 153,300 51,080 835,177

Current assets 920,000 580,000 1,500,000
Investment in Satz Stock 1,097,177 b 880,000 -
a 217,177
Investment in Satz Bonds 227,143 d 15,000 0
g 240,000
e 2,143
Other assets 2,345,457 1,320,000 3,665,457

4,589,777 1,900,000 5,165,457

Bonds payable 10% 700,000 400,000 g 240,000 860,000
Premium on bonds payable 20,000 9,000 c 6,300 f 900 23,600
Other liabilities 1,434,600 141,000 1,575,600
Common stock 1,600,000 800,000 b 800,000 1,600,000
R/E 31 Dec 2012 835,177 550,000 652,220 - 153,300 51,080 835,177
NCI in equity b 220,000 220,000
271,080 271,080

4,589,777 1,900,000 5,165,457

workpaper entries/elimiantion entries Recalculation saldo investment in Satz co, stock 1,097,177.14
a Equity in subsidiary income 337,177 common stock 800,000
Dividends declared $150,000 x 80% 120,000 R/E 31 dec 2012 550,000
Investment in Satz Stock 217,177 1,350,000 x 80% 1,080,000.00
sisa difference per 31 dec 2012 -
b Common stock - Satz 800,000 Satz Co constructive gain on bonds 6,300 x 80% 5,040.00
R/E 1 jan 2009 300,000 adjustment for constructive gain on bonds $6.300/3.5 x 6/12 x 80% (720.00)
Difference $0 Prezo Co constructive gain on bonds 15,000.00
Investment in Satz Stock 880,000 adjustment for constructive gain on bonds $15.000/42 (2,142.86)
NCI in equity 220,000 Investment in Satz co, stock 1,097,177.14

c Premium on bonds 6,300

Constructive gain on bonds 6,300 Net income - Satz co tahun 2013 500,000
dividen 2013 200,000
d Investment in Satz Bonds 15,000 Net income - Satz co tahun 2014 600,000
Constructive gain on bonds 15,000 dividend 2014 250,000

e Interest revenue 2,143

Investment in Satz bonds 2,143
(to reverse amortization of premium on bonds recorded by Prezo Co)
$15,000/42 x 6 months

f Interest revenue 900

Premium on bonds 900
$10,500/42 x 6 months x 60%

g Bonds payable 240,000

Investment in Satz Co bonds 240,000

h Interest income 12,000

Interest expenses 12,000
$400,000 x 10% x 6/12 x 60%

NIC in consolidated net income

NI Satz $400,000 x 20% 80,000
Satz Constructive gain on bonds $6,300 x 20% 1,260
Adjustment for constructive gain on bonds (180)
$6,300/42 x 6 x 20%

-
NCI in consolidated net income 81,080

2-Jan-09 Investment in Satz Stock 880,000

Cash =80% 880,000

CAD Schedule Parent NCI Total

share
80% 20% 100%
Purchase price 880,000 220,000 1,100,000
Common stock 640,000 160,000 800,000
R/E 2 jan 2009 240,000 60,000 300,000
880,000 220,000 - 1,100,000
Difference - - - -

1-Jul-09 Bonds investment 225,000

cash 225,000

Penerbit obligasi = Satz Co , berarti jenis interco transaction bonds - Upstream sale of bonds
Prezo Co
Satz Co Purchase price
Carrying Face value of bonds
value of bonds of bonds
246,300 240,000 225,000

6,300 15,000
Constructive gain Constructive gain

21,300
Constructive gain on bonds

31-Dec-09 Investment in Satz Co Stock 337,177

Equity in subsidiary income 337,177

NI Satz $400,000 x 80% 320,000

Satz constructive gain $6,300 x 80% 5,040
Adjustment for constructive gain (720)
$6,300/42 x 6 months x 80%
Prezo Co constructive gain 15,000
Adjustment for constructive gain (2,143)
$15,000/42 x 6 months
Equity in subsidiary income 337,177

31-Dec-09 Cash 120,000

Investment in Satz Co Stock 120,000
$150,000 x 80%

Investment in Satz Stock 2 jan 2009 880,000

Equity in subsidiary income 337,177
Dividends declared $150,000 x 80% (120,000)
Investment in Satz Stock per 31 Dec 2009 1,097,177

Investment in Satz bonds per 1 july 2009 225,000

Amortization of premium on bonds 2,143
$15,000/42 x 6 months
227,143

P9-2 Prezo Satz Debit Credit NCI consolidation

Sales 2,680,000 1,860,000 4,540,000
dividend income 120,000 a 120,000 -
Other income 266,000 120,000 f 12,000 371,857
g 2,143

expenses (2,678,000) (1,580,000) h 900 f 12,000 (4,246,900)

Constructive gain on bonds c 6,300 21,300
d 15,000
NCI in consolidated net income 81,080 (81,080)
Net income 388,000 400,000 135,043 33,300 81,080 605,177
Beg.R/E 1 jan 2012 480,000 300,000 b 300,000 480,000
Net income 388,000 400,000 135,043 33,300 81,080 605,177
dividends declared (250,000) (150,000) a 120,000 (30,000) (250,000)

R/E 31 Dec 2012 618,000 550,000 435,043 153,300 51,080 835,177

Current assets 920,000 580,000 1,500,000
Investment in Satz Stock 880,000 b 880,000 -

Investment in Satz Bonds 227,143 d 15,000 e 240,000 0

g 2,143

Other assets 2,345,457 1,320,000 3,665,457

4,372,600 1,900,000 5,165,457

Bonds payable 10% 700,000 400,000 e 240,000 860,000
Premium on bonds payable 20,000 9,000 c 6,300 h 900 23,600
Other liabilities 1,434,600 141,000 1,575,600
Common stock 1,600,000 800,000 b 800,000 1,600,000
R/E 31 Dec 2012 618,000 550,000 435,043 153,300 51,080 835,177
NCI in equity b 220,000 220,000
271,080 271,080

4,372,600 1,900,000 5,165,457

2-Jan-12 CAD schedule Parent share NCI Total
80% 20% 100%
Purchase price 880,000 220,000 1,100,000
common stock 640,000 160,000 800,000
R/E 2 jan 2012 240,000 60,000 300,000
880,000 220,000 - 1,100,000
difference - - - -

1-Jul-12 prezo co membeli obligasi yang diterbitkan oleh Satz Co = upstream sales of bonds
Satz co Prezo co
Carrying value purchase price Par value of bonds - Satz co 400,000
of bonds Par value bonds investment Premium on bonds 10500
246,300 240,000 225,000 $9.000/3 years x 3,5 years
carrying value of bonds 1 july 2012 410,500

6,300 15,000
constructive gain constructive gain on bonds
on bonds

21,300
total constructive gain on bonds

elimination entries
a Dividends income 120,000
Dividends declared 120,000
$150.000 x 80%

b common stock 800,000

R/E 1 jan 2012 300,000
Investment in Satz co , stock 880,000
NCI in equity 220,000

c Premium on bonds 6,300

constructive gain on bonds 6,300
$10.500 premium on bond at Satz co per 1 july 2012 x 60% kepemilikan obligasi di Satz co bonds oleh Prezo Co

d Investment in Satz co, bonds 15,000

constructive gain on bonds 15,000

e Bonds payable - Satz Co 240,000

Investment in Satz co , bonds 240,000

(constructively retired of bonds)

f Interest income 12000

Interest expense 12000
$400.000 x 10% x 6/12 x 60%

g Interest income 2,143

Investment in Satz,co, bonds 2,143
(jurnal untuk membatalkan atas jurnal untuk mencatatkan amortisasi discounts on bonds yang
timbul di Prezo co, ada discounts on bonds di Prezo co, karena Prezo membeli obligasi Satz co,
seharga $225.000 yaitu lebih rendah $15.000 dari par value of satz co bonds sebesar $240.000)

h interest expense 900

Premium on bonds 900
(jurnal untuk membatalkan atas amortisasi premium on bonds yang sebelum nya sudah
dicatatkan oleh pihak Satz, co )
$1.500 x 60%

NCI in income
NI Satz,co $400.000 x 20% 80,000
Satz co constructive gain on bonds $6.300 x 20% 1,260
amortisasi atas constructive gain on bonds (180)
$6.300/3,5 years x 6/12 x 20% 81,080

Prezo co Satz co
1-Jul-12 Investment in Satz co bonds, 225,000 Cash 410,500
cash 225,000 bonds payable 400,000
Premium on bonds 10,500

31-Dec-12 Cash 12,000 Interest expense 20,000

Interest income 12,000 cash 20,000
$400.000 x 10% x 6/12 x 60% $400.000 x 10% x 6/12

31-Dec-12 Investment in Satz,co, bonds 2,143 Premium on bonds 1,500

Interest income 2,143 Interest expense 1,500
$15.000/3,5 years x 6/12 $10.500/3,5 years x 6/12
first year - year of 2012 complete equity method
workpaper entries/elimiantion entries
a Equity in subsidiary income 337,177.14
Dividends declared $150,000 x 80%
Investment in Satz Stock

b Common stock - Satz 800,000.00

R/E 1 jan 2009 300,000.00
Difference -
Investment in Satz Stock
NCI in equity

c Premium on bonds 6,300.00

Constructive gain on bonds

d Investment in Satz Bonds 15,000.00

Constructive gain on bonds

e Interest revenue 2,142.86

Investment in Satz bonds
(to reverse amortization of premium on bonds recorded by Prezo Co)
$15,000/42 x 6 months

f Interest revenue 900.00

Premium on bonds
$10,500/42 x 6 months x 60%

g Bonds payable 240,000.00

Investment in Satz Co bonds

h Interest income 20,000.00

Interest expenses
$400,000 x 10% x 6/12

NIC in consolidated net income

NI Satz $400,000 x 20%
 Satz Constructive gain on bonds $6,300 x 20%
Adjustment for constructive gain on bonds
$6,300/42 x 6 x 20%

NCI in consolidated net income

NI Satz $400,000 x 80% 320,000.00

Satz constructive gain $6,300 x 80% 5,040.00
Adjustment for constructive gain (720.00)
$6,300/42 x 6 months x 80%
Prezo Co constructive gain 15,000.00
Adjustment for constructive gain (2,142.86)
$15,000/42 x 6 months
Equity in subsidiary income 337,177.14

second year - year of 2013 complete equity method

workpaper entries/elimiantion entries
a Equity in subsidiary income 394,274.29
Dividends declared $200,000 x 80%
Investment in Satz Stock

b Common stock - Satz 800,000.00

R/E 1 jan 2013 550,000.00
$300.000+400.000-150.000
Difference -
Investment in Satz Stock
NCI in equity

c Premium on bonds 6,300.00

Investment in Satz co, stock $6.300x80%
NCI in equity $6.300 x 20%
 d Investment in Satz Bonds 15,000.00
Investment in Satz co, stock

e Investment in Satz co, stock 2,142.86

Interest revenue $15.000/42 x 12 4,285.71
Investment in Satz bonds
(to reverse amortization of premium on bonds recorded by Prezo Co)
$15,000/42 x 12 months

f Investment in Satz co, stock 900.00

Interest expense 10.500/42 x 12 x 60% 1,800.00
Premium on bonds
$10,500/42 x 12 months x 60%

g Bonds payable 240,000.00

Investment in Satz Co bonds

h Interest income 48,000.00

Interest expenses
$400,000 x 10% x 12/12

NIC in consolidated net income

NI Satz $500,000 x 20%
Satz Constructive gain on bonds $6,300 x 20%
Adjustment for constructive gain on bonds
$6,300/42 x 12 x 20%

NCI in consolidated net income

NI Satz $500,000 x 80% 400,000.00

Satz constructive gain $6,300 x 80% -
Adjustment for constructive gain (1,440.00)
$6,300/42 x 12 months x 80%
Prezo Co constructive gain -
Adjustment for constructive gain (4,285.71)
$15,000/42 x 12 months
Equity in subsidiary income 394,274.29

i no entry
equity method cost method
elimination entries
a Dividends income 120,000.00
120,000.00 Dividends declared
217,177.14 $150.000 x 80%

b common stock 800,000.00

R/E 1 jan 2012 300,000.00
Investment in Satz co , stock
880,000.00 NCI in equity
220,000.00
c Premium on bonds 6,300.00
constructive gain on bonds
6,300.00 $10.500 premium on bond at Satz co per 1 july 2012 x 6

d Investment in Satz co, bonds 15,000.00

15,000.00 constructive gain on bonds

e Bonds payable - Satz Co 240,000.00

2,142.86
ded by Prezo Co) Investment in Satz co , bonds
(constructively retired of bonds)

f Interest income 12,000.00

900.00 Interest expense
$400.000 x 10% x 6/12 x 60%

g Interest income 2,142.86

240,000.00 Investment in Satz,co, bonds
(jurnal untuk membatalkan atas jurnal untuk mencatat
timbul di Prezo co, ada discounts on bonds di Prezo co,
20,000.00 seharga $225.000 yaitu lebih rendah $15.000 dari par v

h interest expense 900.00

Premium on bonds
80,000.00 (jurnal untuk membatalkan atas amortisasi premium on
 1,260.00 dicatatkan oleh pihak Satz, co )
(180.00) $1.500 x 60%

NCI in income
- NI Satz,co $400.000 x 20%
81,080.00 Satz co constructive gain on bonds $6.300 x 20%
amortisasi atas constructive gain on bonds
$6.300/3,5 years x 6/12 x 20%

equity method cost method

elimination entries
a Dividends income 160,000.00
160,000.00 Dividends declared
234,274.29 $200.000 x 80%

b common stock 800,000.00

R/E 1 jan 2013 550,000.00

Investment in Satz co , stock

1,080,000.00 NCI in equity
270,000.00
c Premium on bonds 6,300.00
Beg.Retained earnings
5,040.00 NCI in equity
1,260.00
 d Investment in Satz co, bonds 15,000.00
15,000.00 Beg.Retained earnings

e Bonds payable - Satz Co 240,000.00

6,428.57
ded by Prezo Co) Investment in Satz co , bonds
(constructively retired of bonds)

f Interest income 48,000.00

2,700.00 Interest expense

$400.000 x 10% x 12 x 60%

g Beg.R/E 2,142.86
240,000.00 Interest revenue 4,285.71
Investment in Satz co,bonds

48,000.00

h Beg.R/E 900.00
Interest expense 1,800.00
100,000.00 Premium on bonds
-
(360.00)

NCI in income
- NI Satz,co $400.000 x 20%
99,640.00 Satz co constructive gain on bonds $6.300 x 20%
amortisasi atas constructive gain on bonds
$6.300/3,5 years x 6/12 x 20%
i Investment in Satz,co , stock 200,000.00
retained earnings
(reciprocity)

R/E 1 jan 2013 550,000.00

R/E 1 jan 2012 300,000.00
250,000.00
 120,000.00

880,000.00
220,000.00

6,300.00
co per 1 july 2012 x 60% kepemilikan obligasi di Satz co bonds oleh Prezo Co

15,000.00

240,000.00

12,000.00

2,142.86
rnal untuk mencatatkan amortisasi discounts on bonds yang
n bonds di Prezo co, karena Prezo membeli obligasi Satz co,
ah $15.000 dari par value of satz co bonds sebesar $240.000)

900.00
mortisasi premium on bonds yang sebelum nya sudah
 80,000.00
1,260.00
(180.00)
81,080.00

160,000.00

1,080,000.00
270,000.00

5,040.00
1,260.00
 15,000.00

240,000.00

48,000.00

6,428.57

2,700.00

80,000.00
1,260.00
(180.00)
81,080.00
 200,000.00

x 80%= 200,000.00