TUGAS AKUNTANSI KEUANGAN LANJUTAN

“Minggu ke-7”

Disusun Oleh:

Syamsi Nuri
NIM. 20133089

Dosen Pengampu Matakuliah:

Salma Taqwa, SE,M.Si

Program Studi D3 Akuntansi

Fakultas Ekonomi
Universitas Negeri Padang
2022
Soal 4-5

Par Corporation acquired a 70 percent interest in Sul Corporation’s outstanding voting

common stock on January 1, 2011, for $490,000 cash. The stockholders’ equity (book value) of
Sul on this date con- sisted of $500,000 capital stock and $100,000 retained earnings. The
differences between the fair value of Sul and the book value of Sul were assigned $5,000 to Sul’s
undervalued inventory, $14,000 to undervalued buildings, $21,000 to undervalued equipment,
and $40,000 to previously unrecorded pat- ents. Any remaining excess is goodwill.

The undervalued inventory items were sold during 2011, and the undervalued buildings
and equipment had remaining useful lives of seven years and three years, respectively. The
patents have a 40-year life. Depreciation is straight line.

At December 31, 2011, Sul’s accounts payable include $10,000 owed to Par. This
$10,000 account payable is due on January 15, 2012. Separate financial statements for Par and
Sul for 2011 are summarized as follows (in thousands):

Par Sul
Combined Income and Retained Earnings
Statements for the Year Ended December 31

Sales $ 800 $700

Income from Sul 59.5 —
Cost of sales (300) (400)
Depreciation expense (154) (60)
Other expenses (160) (140)
Net income 245.5 100
Add: Retained earnings January 1 300 100
Deduct: Dividends (200) (50)
Retained earnings December 31 $ 345.5 $150
Balance Sheet at December 31
Cash $ 86 $ 60
Accounts receivable—net 100 70
Dividends receivable 14 —
Inventories 150 100
Other current assets 70 30
Land 50 100
Buildings—net 140 160
Equipment—net 570 330
Investment in Sul 514.5 —
Total assets $1,694.5 $850
 Accounts payable $ 200 $ 85
Dividends payable 100 20
Other liabilities 49 95
Capital stock, $10 par 1,000 500
Retained earnings 345.5 150
Total equities $1,694.5 $850

REQUIRED: Prepare consolidation workpapers for Par Corporation and Subsidiary for the year
ended December 31, 2011. Use an unamortized excess account.

Answer:

Allocation of excess fair value over book value

Cost of 70% interest January 1 $490,000

Implied fair value of Sul ($490,000 / 70%) $700,000
Book value of Sul (600,000)
Excess fair value over book value $100,000
Noncontrolling interest – 30% of fair value at acquisition $210,000
Excess allocated
Undervalued inventory items sold in 2011 $ 5,000
Undervalued buildings (7 year life) 14,000
Undervalued equipment (3 year life) 21,000
Patents 40,000
Remainder to Goodwill 20,000
Excess fair value over book value $100,000
Calculation of income from Sul
Sul’s net income $100,000
Less: Undervalued inventories sold in 2011 (5,000)
Less: Additional Depreciation on building ($14,000/7 years) (2,000)
Less: Additional Depreciation on equipment ($21,000/3 years) (7,000)
Less: Patent amortization ($40,000/40 years) (1,000)
Sul’s adjusted income $ 85,000
Par’s 70% controlling interest share $ 59,500
Noncontrolling interest’s 30% share $ 25,500
Workpaper entries for 2011

a. Income from Sul 59,500

Dividends (Sul) 35,000
Investment in Sul 24,500

b. Capital stock (Sul) 500,000

Retained earnings (Sul) January 1 100,000
Unamortized excess 100,000
Investment in Sul 490,000
Noncontrolling interest January 1 210,000

c. Cost of sales (for inventory items) 5,000

Buildings— net 14,000
Equipment— net 21,000
Patents 40,000
Goodwill 20,000
Unamortized excess 100,000

d. Depreciation expense 2,000

Buildings— net 2,000

e. Depreciation expense 7,000

Equipment— net 7,000

f. Other expenses 1,000

Patents 1,000

g. Accounts payable 10,000

Accounts receivable 10,000

h. Dividends payable 14,000

Dividends receivable 14,000

i. Noncontrolling Interest Share 25,500

Dividends— Sul 15,000
Noncontrolling Interest 10,500
Soal P 4-12
Workpapers (two years after acquisition, fair value/book
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

Answer:
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

Calculate Income
Sci Reported Income 120.000
Amortization
Plant Asset (25.000)
Total Income 95.000

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