Nama : Tasya Rifanis Shofia 22
Yekti Zulia Prastyani 25
Kelas : AK 3A
P 4-12
Workpapers (two years after acquisition, fair value/book differentials, adjustment)
Pat Corporation acquired an 80 percent interest in Sci Corporation for $480.000 on January 1 2011,
when Sci's Stockholders' equity consisted of $400.000 capital stock and $50.000 retained earnings.
The excess fair value over book value acquired was assigned to plant assets that were undervalued
by $100.000 and to goodwill. The undervalued plant assets had a four-year useful life.
ADDITIONAL INFORMATION
1. Pat's account receivable includes $10.000 owed by Sci
2. Sci mailed its check for $40.000 to Pat on December 30, 2012, in settlement of the advance
3. A $20.000 dividend was declared by Sci on December 30, 2012, but was not recorded by Pat
4. Financial statements for Pat and Sci Corporations for 2012 follow
Pat Sci
Statements of income and retained earnings
for the year ended december 31
Sales $ 1,800,000 $ 600,000
Income from Sci $ 76,000 $ -
Cost of Sales $ (1,200,000) $ (300,000)
Operating Expenses $ (380,000) $ (180,000)
Net Income $ 296,000 $ 120,000
Add : Retained earnings January 1 $ 244,000 $ 100,000
Less : Devidends $ (200,000) $ (40,000)
Retaines earnings December 31 $ 340,000 $ 180,000
Balance Sheet at December 31
Cash $ 12,000 $ 30,000
Account receivable-net $ 52,000 $ 40,000
Inventories $ 164,000 $ 120,000
Advance to Sci $ 40,000 $ -
Other Current asets $ 160,000 $ 10,000
Land $ 320,000 $ 60,000
Plant assets-net $ 680,000 $ 460,000
Investment in Sci $ 560,000 $ -
Total assets $ 1,988,000 $ 720,000
Account payable $ 48,000 $ 30,000
Dividend payable $ - $ 20,000
Other Liabilities $ 200,000 $ 90,000
Capital Stock $ 1,400,000 $ 400,000
Retained earnings $ 340,000 $ 180,000
Total liabilities and stockholder's equity $ 1,988,000 $ 720,000
REQUIRED : Prepare consolidation workpapers for pat corporation and Subsidiary for 2012
Investment Cost (480.000/80%) 600,000 600,000
Equity
Capital Stock 400,000
Retained Earning 50,000
Book Value 450,000 550,000 Fair Value
Excess 150,000 50,000 Goodwill
Allocation Amortization
Plant Assets 100,000 4 Year 25,000 75,000 amortisasi yang tersisa
Goodwill 50,000
Atau
Calculate Income
Sci Reported Income 120,000
Amortization
Plant Asset (25,000)
Total Income 95,000
CI 76,000
NCI 19,000
Investment in Sci January 1,2011 480,000
Delta Retained Earning (50.000-100.000)*80% 40,000
Amortization
Plant Asset (25.000*80%) (20,000)
Investment in sci December 31,2011 500,000
Income 2012 76,000
Dividend 2012 (80%*40.000) (32,000)
Investment in Sci December 31,2012 544,000
Pat Sci Debit Credit Consolidation
Statements of income and retained earnings
for the year ended december 31
Sales 1,800,000 600,000 2,400,000
Income from Sci 76,000 - 3 76,000 -
Cost of Sales (1,200,000) (300,000) (1,500,000)
Operating Expenses (380,000) (180,000) 2 25,000 (585,000)
Consolidated Net Income 315,000
Non Controlling Shares 4 19,000 (19,000)
Controlling Share 296,000 120,000 296,000
Retained Earnings
Retained earnings- Pat (Jan, 1 2011) 244,000 244,000
Retained earnings- Sci (Jan, 1 2011 100,000 1 100,000 -
Add : Controlling shares 296,000 120,000 296,000
Less : Devidends (200,000) (40,000) 3.4 40,000 (200,000)
Retaines earnings December 31 340,000 180,000 340,000
Balance Sheet at December 31
Cash 12,000 30,000 5a 40,000 82,000
Account receivable-net 52,000 40,000 5c 10,000 82,000
Dividend Receivable a 16,000 5b 16,000 -
Inventories 164,000 120,000 284,000
Advanced to Sci 40,000 - 5a 40,000 -
Other Current asets 160,000 10,000 170,000
Land 320,000 60,000 380,000
Plant assets-net 680,000 460,000 1 75,000 1 25,000 1,190,000
Investment in Sci 560,000 - a,1,3 560,000 -
Goodwill 1 50,000 50,000
Total assets 1,988,000 720,000 2,238,000
Account payable 48,000 30,000 5c 10,000 68,000
Dividend payable - 20,000 5b 16,000 4,000
Other Liabilities 200,000 90,000 290,000
Capital Stock 1,400,000 400,000 1 400,000 1,400,000
Retained earnings 340,000 180,000 340,000
Non Controlling Interest (Jan, 1 2012) 1 125,000
Non Controlling Interest (Des, 31 2012) 4 11,000 136,000
1,988,000 720,000 827,000 827,000 2,238,000
- - - -
Pat Sci Debit Credit Consolidation
Statements of income and retained earnings
for the year ended december 31
Sales 1,800,000 600,000 2,400,000
Income from Sci 76,000 - 3 76,000 -
Cost of Sales (1,200,000) (300,000) (1,500,000)
Operating Expenses (380,000) (180,000) 2 25,000 (585,000)
Consolidated Net Income 315,000
Non Controlling Shares 4 19,000 (19,000)
Controlling Share 296,000 120,000 296,000
Retained Earnings
Retained earnings- Pat (Jan, 1 2011) 244,000 244,000
Retained earnings- Sci (Jan, 1 2011 100,000 1 100,000 -
Add : Controlling shares 296,000 120,000 296,000
Less : Devidends (200,000) (40,000) 3.4 40,000 (200,000)
Retaines earnings December 31 340,000 180,000 340,000
Balance Sheet at December 31
Cash 12,000 30,000 5a 40,000 82,000
Account receivable-net 52,000 40,000 5c 10,000 82,000
Dividend Receivable 16,000 5b 16,000 -
Inventories 164,000 120,000 284,000
Advanced to Sci 40,000 - 5a 40,000 -
Other Current asets 160,000 10,000 170,000
Land 320,000 60,000 380,000
Plant assets-net 680,000 460,000 1 75,000 2 25,000 1,190,000
Investment in Sci 544,000 - 1.3 544,000 -
Goodwill 1 50,000 50,000
Total assets 1,988,000 720,000 2,238,000
Account payable 48,000 30,000 5c 10,000 68,000
Dividend payable - 20,000 5b 16,000 4,000
Other Liabilities 200,000 90,000 290,000
Capital Stock 1,400,000 400,000 1 400,000 1,400,000
Retained earnings 340,000 180,000 340,000
Non Controlling Interest (Jan, 1 2012) 1 125,000
Non Controlling Interest (Des, 31 2012) 4 11,000 136,000
1,988,000 720,000 811,000 811,000 2,238,000
- - - -
