PROBLEM 1: Intercompany Transfer of Inventory: Asistensi Akuntansi Keuangan Lanjutan I

ASISTENSI AKUNTANSI KEUANGAN LANJUTAN I
PERTEMUAN 6
INTERCOMPANY INVENTORY TRANSACTION
TIM ASISTEN DOSEN
PROBLEM 1: Intercompany Transfer of Inventory

Pop Corporation acquired 70 percent of Soda Company’s voting common share on January 1.
20X2, for $108.500. At that date,the noncontrolling interest had a fair valueof $46.500 and
Soda reported $70.000 of common stock outstanding and retained earnings of $30.000. The
differential is assigned to buildings and equipment, which had fair value $20.000 higher than
book value and a remaining 10-year life, and to patents, which had a fair value $35.000 higher
than book value and a remaining life of 5-year at the date of the business combination. Trial
balance for the companies as of December 31, 20X3, are as follows:
Pop Corporation Soda Company
Item Debit Credit Debit Credit
Cash & AR 15.400 21.600
Inventory 165.000 35.000
Land 80.000 40.000
Building & Equipment 340.000 260.000
Investment in Soda Co. 109.600
COGS 186.000 79.800
Depreciation Expense 20.000 15.000
Interest Expense 16.000 5.200
Dividends Declared 30.000 15.000
Accumulated Depreciation 140.000 80.000
Account Payable 92.400 35.000
Bonds Payable 200.000 100.000
Bond Premium 1.600
Common Stock 120.000 70.000
Retained Earnings 127.900 60.000
Sales 260.000 125.000
Other Income 13.600
Income from Soda Co. 8.100
962.000 962.000 471.600 471.600

PERTEMUAN 6
TIM ASISTEN DOSEN
On December 31, 20X2, Soda purchased inventory for $32.000 and sold it to Pop for $48.000.
Pop resold $27.000 of the inventory (i.e., $27.000 of the $48.000 acquired from Soda) during
20X3 and had remaining balance in inventory at December 31, 20X3
During 20X3, Soda sold inventory purchased for $60.000 to Pop for $90.000, and Pop resold
all but $24.000 of its purchase. On March 10, 20X3, Pop sold inventory purchased for $15.000
to Soda for $30.000. Soda sold all but $7.600 of the inventory prior to December 31, 20X3.
Assume Pop uses the fully adjusted equity method, that both companies use straight-line
depreciation, and that no property, plant, and equipment has been purchased since the
acquisition.
Required:
a. Give all consolidation entries needed to prepare a full set of consolidation financial
statement at December 31, 20X3, for Pop and Soda
b. Prepare the three-part consolidation worksheet for 20X3
PROBLEM 2: Consolidation Using Financial Statement Data

Point Corporation acquired 60 percent of Stick Company stock on January 1, 20X3, for
$24.000 in excess of book value. On that date, the book values and fair values of Stick’s
assets and liabilities were equal and the fair value of the noncontrolling interest was $16.000 in
excess of book value. The full amount of the differential at acquisition was assigned to goodwill
of $40.000. At December 31, 20X6, Point management reviewed the amount assigned to
goodwill of $40.000. At December 31, 20X6, Point management reviewed the amount
assigned to goodwill and concluded it had been impaired. They concluded the correct carrying
value at that date should be $30.000 and the impairment loss should be assigned
proportionately between the controlling and noncontrolling interests.
Balance sheet date for January 1, 20X6, and income statement data for 20X6 for the two
companies are as follows:
POINT CORPORATION AND STICK COMPANY

Balance Sheet Data
January 1, 20X6
Item Point Corp Stick Co

Cash 9.800 10.000
Accounts Receivable 60.000 50.000
Inventory 100.000 80.000
Total Curent Assets 169.800 140.000
Land 70.000 20.000
Buildings and Equipment 300.000 200.000
Less: Acc. Depreciation (140.000) 160.000 (70.000) 130.000
Investment in Stick Co. 135.200
Total Assets 535.000 290.000

Retained Earnings 285.000 385.000 150.000 200.000
Total Liabilities & Equity 535.000 290.000
PERTEMUAN 6
TIM ASISTEN DOSEN

Balance Sheet Data
December 31, 20X6

Cash 26.800 35.000
Accounts Receivable 80.000 40.000
Inventory 120.000 90.000
Total Curent Assets 226.800 165.000
Land 70.000 20.000
Buildings and Equipment 340.000 200.000
Less: Acc. Depreciation (165.000) 175.000 (85.000) 115.000
Investment in Stick Co. 139.600
Total Assets 611.400 300.000

Retained Earnings 311.400 411.400 165.000 215.000
Total Liabilities & Equity 611.400 300.000

Income Statement Data
Year Ended December 31, 20X6

Sales 400.000 200.000
Income from Stick Company 16.400
416.400 200.000
COGS 280.000 120.000
Depreciation & Amortization
25.000 15.000
Expense
Other Expense 35.000 (340.000) 30.000 (165.000)
Net Income 76.400 35.000
On January1, 20X6, Point held inventory purchased from Stick for $48.000. During 20X6, Point
purchased an additional $90.000 of goods from Stick and held $54.000 of its purchases on
December 31, 20X6, Stick sells inventory to Point Corporation at 20% above cost.
Stick also purchases inventory from Point. On January, 1 20X6, Stick held inventory purchased
from Point for $14.000 and on December 31, 20X6 it held inventory purchased from Point for
$7.000. Stick’s total purchases from Point were $22.000 in 20X6. Point sells items to Stick at
40% above cost
During 20X6, Point paid dividends of $50.000, and Stick paid dividends of $20.000. Assume
that Point uses the fully adjusted equity method that both companies ises straught-line
PERTEMUAN 6
TIM ASISTEN DOSEN
depreciation, and that no property, plant, and equipment has been purchased since the
acquisition.
Required:
a. Prepare all consolidation entries needed to complete a consolidation worksheet as of
December 31, 20X6
b. Prepare a three-part consolidation worksheet as of December 31, 20X6

PROBLEM 1: Intercompany Transfer of Inventory: Asistensi Akuntansi Keuangan Lanjutan I

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ASISTENSI AKUNTANSI KEUANGAN LANJUTAN I

PROBLEM 1: Intercompany Transfer of Inventory

Pop Corporation Soda Company

Item Debit Credit Debit Credit

Cash & AR 15.400 21.600

Inventory 165.000 35.000

Land 80.000 40.000

Building & Equipment 340.000 260.000

Investment in Soda Co. 109.600

COGS 186.000 79.800

Depreciation Expense 20.000 15.000

Interest Expense 16.000 5.200

Dividends Declared 30.000 15.000

Accumulated Depreciation 140.000 80.000

Account Payable 92.400 35.000

Bonds Payable 200.000 100.000

Bond Premium 1.600

Common Stock 120.000 70.000

Retained Earnings 127.900 60.000

Sales 260.000 125.000

Other Income 13.600

Income from Soda Co. 8.100

962.000 962.000 471.600 471.600

PROBLEM 2: Consolidation Using Financial Statement Data

POINT CORPORATION AND STICK COMPANY

Item Point Corp Stick Co

Account Payable 30.000 20.000

POINT CORPORATION AND STICK COMPANY

Item Point Corp Stick Co

Account Payable 80.000 15.000

POINT CORPORATION AND STICK COMPANY

Item Point Corp Stick Co

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