Poe Corporation and Subsidiary

Consolidation Workpapers
for the year ended December 31, 2014
(in thousands)
Adjustments and
Poe 90% Sun Eliminations
Income Statement
Sales $ 16,380 $ 11,200 $ 11,200
Income from Sun $ 1,728 $ - $ 1,728

Cost of sales $ (10,920) $ (8,000) $ 240

Other expenses $ (3,088) $ (1,200)

Noncontrolling share $ 192
Net income $ 4,100 $ 2,000
Retained Earning - poe $ 2,500
Retained Earning - sun $ 1,400 $ 1,400

Dividends $ (2,000) $ (1,000)

Retained earnings – Dec 31 $ 4,600 $ 2,400

Balance Sheet
Cash
$ 1,516 $ 1,000
Inventory $ 840 $ 1,600
Other Current Assets $ 1,200 $ 400
Plant Assets -net
$ 6,000 $ 6,000

Investment in Sun $ 6,444 $ - $ 144

Goodwill $ 1,000
Total Assets $ 16,000 $ 9,000

Current Liabilities $ 3,400 $ 2,600 $ 200

Capital stock $ 8,000 $ 4,000 $ 4,000
Retained earnings $ 4,600 $ 2,400
Total Equities $ 16,000 $ 9,000
Noncontrolling interest January 1 $ 16
Noncontrolling interest December 31

$ 20,120

Preliminary Computations
Invesment Cost $ 5,400,000
Implied Fair value of Sun $ 6,000,000
Less : Book value of Sun $ 5,000,000
Goddwill $ 1,000,000

Upatrem Sales
Unriliezed Profit in December 31, 2013 inventory Poe
$560.000 - ($560.000/1,4) $ 160,000
Unriliezed Profit in December 31, 2014 inventory Poe
$840.000 - ($840.000/1,4) $ 240,000

Income from Sun

Sun's Repoted Net Income $ 2,000,000
Less : Unrealized Profit in Ending Inventory $ (240,000)
Add : Unrealized Profit in Begining Inventory $ 160,000
Sun's adjusted and Realized Income $ 1,920,000

CI Share NCI Share

$ 1,728,000 $ 192,000

Invesment Balance
Initial Invesment Cost $ 6,000,000
Increase in Sun's net assets $ 1,400,000
Unrealized Profit $ (240,000)
Invesment balance December 31,2014 $ 7,160,000

CI NCI
$ 6,444,000 $ 716,000
y

14

Adjustments and Consolidated

Eliminations Statements

$ 16,380
$ -
$ 11,200
$ (7,800)
$ 160
$ (4,288)
$ (192)
$ 4,100
$ 2,500
$ -
$ 900
$ (2,000)
$ 100
$ 4,600

$ 2,516
$ 240 $ 2,200
$ 200 $ 1,400
$ 12,000
$ 828
$ -
$ 5,760
$ 1,000
$ 19,116

$ 5,800
$ 8,000
$ 4,600

$ 640
$ 92 $ 716
$ 20,120 $ 19,116

400000
560.000 + harga transfer

600000
 Poe Corporation and Subsidiary
Adjusment Journal
December 31, 2014

Date Account/Describe Debit

2014
Dec 31 Sales $ 11,200,000
Cost of Sales
( To eliminate intercompany Sales and related cost of good sold
amount)

31 Cost of Sales $ 240,000

Inventory
(To eliminate unrealized profit in the ending inventory to
increase cost of Sales consolidated entity)

31 Invesment in Sun $ 144,000

NCI ( 10%*160.000) $ 16,000
Cost of Sale
(To adjust cost of sales and the beginning investment balance
for unrealized profit in the beginning inventory)

31 Income From Sun $ 1,728,000

Devidend ( 90%*1.000.000)
Invesment in Sun
(To eliminate income and devidend from sun)

31 Notcontrolling Interst Share $ 192,000

Devidend ( 10%*1.000.000
Notcontrolling Interest
(to enter notcontroling interest share of subsidiary )

31 Retained Earning $ 1,400,000

Goddwill $ 1,000,000
Commond Stock $ 4,000,000
Invesment in Sun
NotControlling Interest
(To eliminate reciprocal investment and equity balance)

31 Account Payable $ 200,000

Other Current Assets
(to eliminate intercompany account receivable and account
payable )
AMOUNT $ 20,120,000
 Credit

$ 11,200,000

$ 240,000

$ 160,000

$ 900,000
$ 828,000

$ 100,000
$ 92,000

$ 5,760,000
$ 640,000

$ 200,000

$ 20,120,000
 Pop Corporation and Subsidiary
Consolidation Workpapers
for the year ended December 31, 2017
(in thousands)
Adjustments and Consolidated
Poe 90% Sun Eliminations Statements
Income Statement
Sales $ 800 $ 400 $ 120 $ 1,080
Income from Son $ 108 $ - $ 108 $ -
$ 120
Cost of sales $ (400) $ (200) $ 12 $ (472)
$ 20
Depresiation Expense $ (110) $ (40) $ (150)
Other expenses $ (192) $ (60) $ (252)
Net income
$ 206 $ 100 $ 206
Beginning Retained Earning $ 606 380 $ 380 $ 606
Dividends $ (100) $ (50) $ 50 $ (100)
Retained earnings – Dec 31 $ 712 $ 430 $ 712

Balance Sheet
Cash $ 54 $ 37 $ 91
Receivable -net $ 90 $ 60 $ 17 $ 133
Inventories $ 100 $ 80 $ 12 $ 168
Other Assets $ 70 $ 90 $ 160
Land $ 50 $ 50 $ 100
Building- net $ 200 $ 150 $ 350
Equipment -net $ 500 $ 400 $ 900
$ 58
Investment in Son $ 748 $ - $ 20 $ -
$ 710
Goodwill
$ 30 $ 30
Total Assets $ 1,812 $ 867 $ 1,932

Account Payable
$ 160 $ 47 $ 17 $ 190
Other Liabilities $ 340 $ 90 $ 430
Common Stock, $10par
$ 600 $ 300 $ 300 $ 600
Retained earnings $ 712 $ 430 $ 712
Total Equities $ 1,812 $ 867 $ 987 $ 987 $ 1,932

Preliminary Computations
Invesment Cost $ 660,000
Less : Book value of Sun $ 600,000
Goddwill $ 30,000
Inventory $ 30,000

Downstrem Sales
Unriliezed Profit in December 31, 2016
$40.000 x 1/2 $ 20,000
Unriliezed Profit in December 31, 2017
$48.000 x 1/4 $ 12,000

Income from Son

Net Income $ 100,000
Less : Unrealized Profit in Ending Inventory $ (12,000)
Add : Unrealized Profit in Begining Inventory $ 20,000
Sun's adjusted and Realized Income $ 108,000

CI Share NCI Share

$ 108,000 $ -

Invesment Balance
Initial Invesment Cost $ 660,000
Increase in Sun's net assets $ 88,000
Invesment balance December 31,2014 $ 748,000

CI NCI
$ 748,000 $ -
 Pop Corporation and Subsidiary
Adjusment Journal
December 31, 2017

Date
2017
Dec 31

31

31

31

31

31
 Pop Corporation and Subsidiary
Adjusment Journal
December 31, 2017

Account/Describe

Sales
Cost of Sales
( To eliminate intercompany Sales and related cost of good sold amount)

Cost of Sales
Inventory
(To eliminate unrealized profit in the ending inventory to increase cost of Sales consolidated entity)

Invesment in Son
Cost of Sale
(To adjust cost of sales and the beginning investment balance for unrealized profit in the beginning inventory)

Income From Son

Devidend
Invesment in Son
(To eliminate income and devidend from sun)

Retained Earning
Goddwill
Commond Stock
Invesment in Son
(To eliminate reciprocal investment and equity balance)

Account Payable
Receivable net
(to eliminate intercompany account receivable and account payable )
Amount
 Debit Credit

$ 120,000
$ 120,000

$ 12,000
$ 12,000

$ 20,000
$ 20,000

$ 108,000
$ 50,000
$ 58,000

$ 380,000
$ 30,000
$ 300,000
$ 710,000

$ 17,000
$ 17,000

$ 987,000 $ 987,000