P7-5

[Based on AICPA] Computations (constructive retirement of subsidiary bonds)

Selected amounts from the separate unconsolidated financial statements of Pam Corporation and its 90 percent–owned
subsidiary, Sun Company, at December 31, 2016, are as follows (in thousands)

Pam Sun
Selected Income Statement Amounts
Sales 710 530
Cost of good sold 490 370
Gain on sale of equipment 21
Earnings from investment in subsidiary 63
Interest expense 16
Depreciation 25 20
Selected Balance Sheet Amount
Cash 50 15
Inventories 229 150
Equipment 440 360
Accumulated depreciation -200 -120
Investment in Sun 189
Investment in bounds 91
Bounds payable -200
Common stock -100 -10
Additional paid-in capital -250 -40
Retained earnings -402 -140
Selected statement of Retained Earnings Amount
Beginning balance December 31, 2015 272 100
Net income 212 70
Dividends paid 80 30

ADDITIONAL INFORMATION

1. On January 2, 2016, Pam purchased 90 percent of Sun’s 100,000 outstanding common stock for cash of $153,000. On
that date, Sun’s stockholders’ equity equaled $150,000 and the fair values of Sun’s assets and liabilities equaled their
carrying amounts. Pam correctly accounted for the combination as an acquisi_x0002_tion. The difference between fair value
and book value was due to goodwill.
2. On September 4, 2016, Sun paid cash dividends of $30,000.
3. On December 31, 2016, Pam recorded its equity in Sun’s earnings.
4. On January 3, 2016, Sun sold equipment with an original cost of $30,000 and a carrying value of $15,000 to Pam for
$36,000. The equipment had a remaining life of three years and was depreciated using the straight-line method by both
companies
5. During 2016, Sun sold merchandise to Pam for $60,000, which included a profit of $20,000. At December 31, 2016, half
of this merchandise remained in Pam’s inventory.
6. On December 31, 2016, Pam paid $91,000 to purchase half of the outstanding bonds issued by Sun. The bonds mature on
December 31, 2022, and were originally issued at par. These bonds pay interest annually on December 31 of each year, and
the interest was paid to the prior investor immediately before Pam’s purchase of the bonds.

REQUIRED

Determine the amounts at which the following items will appear in the consolidated financial statements
of Pam Corporation and Subsidiary for the year ended December 31, 2016.
1. Cash
2. Equipment less accumulated depreciation
3. Investment in Sun
4. Bonds payable
5. Common stock
6. Beginning retained earnings
7. Dividends declared
8. Gain on retirement of bonds
9. Cost of goods sold
10. Interest expense
11. Depreciation expense

S
 PT PAM and subdiaries
CONSOLIDATED BALANCE SHEET WORKPAPER
Year 2016

Elimination
PAM SUN Conslidation
Debit Credit
Income statement
Penjualan $ 710 $ 530 3a $ 60 $ 1,180
Harga Pokok Penjualan -$ 490 -$ 370 3b $ 10 3a $ 60 -$ 810
Laba Penjualan Peralatan $ - $ 21 2a $ 21 $ -
Pendapatan Investasi dari anak perusahaan $ 50 $ - $ 5 $ 50 $ -
Biaya Bunga -$ 35 -$ 16 -$ 51
Biaya Lain-lain $ - -$ 75 -$ 75
Depresiasi -$ 25 -$ 20 2b $ 7 -$ 38
Laba Penarikan Obligasi $ - $ 1 $ 9 $ 9
NCI 10% $ - $ 8 $ 6 -$ 6
CI 90% $ 210 $ 70 $ 210
Laba Ditahan, 31 Desember 2015 $ 272 $ 100 $ 4 $ 100 $ 272
Devidends -$ 80 -$ 30 5.8 $ 30 -$ 80
Laba Ditahan, 31 Desember 2016 $ 402 $ 140 $ 402

Balance Sheet
Kas $ 50 $ 15 $ 65
Persediaan $ 229 $ 150 3b $ 10 $ 369
Peralatan $ 440 $ 360 2a $ 21 $ 779
Akumulasi Depresiasi -$ 200 -$ 120 2b $ 7 -$ 313
Investasi di Sun $ 176 $ - 4.5 $ 176 $ -
Investasi Obligasi $ 91 $ - $ 1 $ 91 $ -
Goodwill $ - $ - $ 4 $ 20 $ 20
Total Assets $ 786 $ 405 $ 920

Utang lain-lain $ 34 $ 15 $ 49
10% Utang Obligasi $ - $ 200 $ 1 $ 100 $ 100
Saham Biasa $ 100 $ 10 $ 4 $ 10 $ 100
Tambahan Modal Disetor $ 250 $ 40 $ 4 $ 40 $ 250
Laba Ditahan $ 402 $ 140 $ 402
NCI, Desember 31, 2015 $ 4 $ 17 $ 17
NCI, December 31, 2016 $ 8 $ 3 $ 3
Total Ekuitas $ 786 $ 405 $ 423 $ 423 $ 920

100% 90% 10%

Laba bersih 70 63 7
Laba belum direalisasi persediaan akhir -10 -9 -1
Laba atas penjualan peralatan -21 -18.9 -2.1
Pengakuan bagian laba peralatan 7 6.3 0.7
Laba atas pengembalian obligasi 9 8.1 0.9
55 49.5 5.5

Investasi 2 Januari 2016 153

Pendapatan dari Sun 49.5
Deviden (30*90%) -27
Investasi 31 Desember 2016 175.5

1. Kas konsolidasi
Kas Pam 50
Kas Sun 15
Kas Konsolidasi 65

2. Pengakuan bagian per bagian atas laba

Nilai buku peralatan 15
Nilai jual peralatann 36
Laba atas penjualan peralatan 21
Piecemeal (21/3) 7

Peralatan-Neto
Peralatan 800
Akumulasi depresiasi -320
Laba atas penjualan peralatan -21
Piecemal atas laba 7
466

3. Investasi di Sun 90% 100%

Investasi di Sun 153 170
Nilai buku / ekuitas 150
Excess 20 Goodwill

4. Utang Obligasi Sun (200/2)

Harga beli obligasi 100
Laba penarikan obligasi 91
9

5. Modal saham dari Pam 100

6. Laba ditahan awal 272

7. Dividen yang ada dikonsolidasi adalah

deviden Pam 80

8. Nilai buku obligasi 100

Harga beli obligasi 91
Laba penarikan kembali obligasi 9

9. Biaya Penjualan (HPP)

HPP dari Pam 490
HPP dari Sun 370
860
Penjualan antar perusahaan -60
Laba belum direalisasi (20*1/2) 10
810
10. Biaya bunga dari Sun 16

11. Biaya Depresiasi

Biaya depresiasi Pam 25
Biaya depresiasi Sun 20
45
-7
Pengakuan bagian laba 38