Tania Maharani - C1C019071 - Tugas AKL 3
Tania Maharani - C1C019071 - Tugas AKL 3
Tania Maharani - C1C019071 - Tugas AKL 3
EXERCISE 3-1
Prepare in general journal form the workpaper entries to eliminate Prancer Company's
investment in Saltez Company in the preparation of a consolidated balance sheet at the
date of acquisition for each of the following independent cases:
Any difference between book value of net assets and the value implied by the purchase
price relates to subsidiar property plant and equipment except for case (c). In case (c)
assume that all book values and fair values as the same.
JAWAB :
Common Stock – Saltez $ 160,000
Other Contributed Capital – Saltez $ 92,000
a. Retained Earnings – Saltez $ 43,000
Property, Plant, and Equipment $ 56,000
Investment in Saltez $ 351,000
Polo Save
Common stock, $10 par value $350,000 $320,000
Other contributed capital 590,000 175,000
Retained earnings 380,000 205,000
Required:
A. Prepare the journal entry on the books of Polo Company to record the purchase of
the common stock of Save Company and related expenses.
B. Prepare the elimination entry required for the preparation of a consolidated balance
sheet workpaper on the date of acquisition.
JAWAB :
EXERCISE 3-3
On January 2, 2019, Prunce Company acquired 90% of the outstanding common stock of
Sun Company for $192,0 ash. Just before the acquisition, the balance sheets of the two
companies were as follows:
Prunce Sun
The fair values of Sun Company's assets and liabilities are equal to their book values with
the exception of land.
Required:
A. Prepare a journal entry to record the purchase of Sun Company's common stock.
B. Prepare a consolidated balance sheet at the date of acquisition.
JAWAB :
A. Journal Entry
Particulars Amount
(in $)
Assets
Current Assets
Cash 132,000
Accounts Receivable (142000 + 23000) 165,000
Inventory (117000 + 54000) 171,000
Plant & Equipment (Net) (386000 + 98000) 484,000
Land (63000 + 32000 + 28333) 123,333
Total Assets 1,075,333
Liabilities & Stockholders’ Equity
Current Liabilities
1. Cash
Prunce $260,000
Sun $64000
Total $324000
Acquisition Cost ($192000)
Balance $132,000
2. Land
$192000/0.9 – $(70000+20000+95000) = $28,333
3. Non-Controlling Interest
= $(70000 + 20000 + 95000 +28333) * 0.10 = 21,333