KELOMPOK 1

EKA PUTRI SUANTIKA 3.41.17.1.06

NISRINA QURROTU AINI 3.41.17.1.14
P 5-1
Consolidate income and retained earnings (upstream sales, noncontrolling interest)
Par corporation acquired its 90 percent interest in sam corporation at its book value $3.600.000.on January
1,2011, when sam had capital stock of $3.000.000 and retained earnings of $1.000.000.The december
31,20sold. During 2011 and 2012, sales by sam to par were $600.000 and $800.000 , respectively. 11 and 2012,
inventories of par included merchandise acquired from sam of $300.000 and $400.000, respectively. Sam
realizes a gross profit of 40% on all merchandise Summary adjusted trial balances for par and sam at december
31, 2012, follow (in thousand)

PAR SAM
Cash 1,000 200
Receivables 2,000 500
Inventories 2,400 1,000
Plant assets 2,500 4,800
Investment in SAM 4,356
Cost of sales 8,000 3,900
Other expenses 3,400 1,600
Dividends 1,000 500
24,656 12,500

Accounts payable 1,500 900

Other liabilities 600 600
Capital stock $10 par 5,000 3,000
Retained Earnings 3,692 1,500
sales 13,000 6,500
income from sam 864
24,656 12,500

REQUIRED
Prepare a combined consolidation income and retained earnings statement for par corporation and subsidary for
the year ended december 31,2012
 Par Corporation and Subsidiary Consolidation Workpaper
For the Year Ended December 31, 2012
(in dollars)

Adjustment and Elimination Consolidation

Par Sam
Debit Credit Satetments
Income Statements
Sales 13,000 6,500 1a 800 18,700
Income from Sam 864 3 864 -
Cost of Sales (8,000) (3,900) 1c 160 1a,b 920 (11,140)
Other Expenses (3,400) (1,600) (5,000)
NCI Share 5 96 (96)
Net Income 2,464 1,000 2,464

Beginning retained earnings 3,692 1,500 2 1,500 3,692

Net Income 2,464 1,000 2,464
Less : Devidend (1,000) (500) 3,5 500 (1,000)
Retained earnings December 31, 2012 5,156 2,000 5,156

Balance Sheet at December 31, 2012

Cash 1,000 200 1,200
Receivables-net 2,000 500 2,500
Inventories 2,400 1,000 1c 160 3,240
Plant Assets 2,500 4,800 7,300
Investment in Sam 4,356 1b 108 2.3 4,464 -
Total Assets 12,256 6,500 14,240

Account Payable 1,500 900 2,400

Other liabilities 600 600 1,200
Common Stock 5,000 3,000 2 3,000 5,000
Retained Earnings 5,156 2,000 5,156
-
NCI January 1, 2012 1b 12 2 450 438
NCI December 31, 2012 5 46 46
-
Total Equities 12,256 6,500 6,540 6,540 14,240
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864
P 5-4
Computations (upstream and downstream sales)
Comparative income statements of Stu Corporation for the calender years 2011, 2012, and 2013 are as followa (in
thousands):

2011 2012 2013

Sales 24000 25500 28500
Cost of sales 12600 13200 15000
Gross Profit 11400 12300 13500
Operating Expenses 9000 9600 11400
Net Income 2400 2700 2100

ADDITIONAL INFORMATION
1. Stu was a 75 percent owned subsidiary of Pit Corporation throughout the 2011-2013 period. PIT's separate
income (exclude income from STU) was $10.800.000, $10.200.000 in 2011,2012, and 2013, respectively. PIT
acquired its interestitems
in STU at its during
underlying
2011book value,profit
whoch to was
PIT equal to fair value onthe
July 1, 2010
PIT sold inventory to STU at a gross of $ 1.200.000. Half merchandise
2. remained in STU's inventory at December 31, 2011.Total sales by PIT to STU in 2011 were $3.000.000. The
remaining merchandise was sold by STU in 2012
3. PIT's inventory at December 31, 2012 included items acquired from STU on which STU made a profit of
$600.000. Total sales by STU to PIT during 2012 were $2.400.000'
4. There were no unrealized profits in the December 31,2013, invenories of either STU or PIT
5. PIT uses the equity method of accounting for its investment in STU

REQUIRED
1. Prepare a schedule showing PIT's income from STU for the years 2011, 2012, and 2013
2. Compute PIT's net income for the years 2011,2012, and 2013
Prepare a schedule of consolidated net income for PIT Corporation and Subsiadiary for the years 2011, 2012, and
2013, beginning with the separate income of the two affiliates and including noncontrolling interest
3. computations
P 5-4

1.Schedule showing PIT's income from STU for the year 2011,2012,and 2013
2011 2012 2013
PIT's income from STU 75% of STU's net income 1,800,000 2,025,000 1,575,000
Unrealized profit in Dec 31, 2011 Inventory (downstream) (600,000) 600,000
Unrealized profit in Dec 31, 2012 Inventory (upstream) (450,000) 450,000
PIT's Income from STU 1,200,000 2,175,000 2,025,000

2.PIT's net income for THE YEARS 2011, 2012, and 2013
2011 2012 2013
PIT's separate Net income 10,800,000 10,200,000 12,000,000
Add Income from STU 1,200,000 2,175,000 2,025,000
PIT's Net Income 12,000,000 12,375,000 14,025,000

3.Schedule of Consolidated Net Income

2011 2012 2013
Separate income of PIT and STU combined 13,200,000 12,900,000 14,100,000
Unrealized profit in Dec 31, 2011 Inventory (600,000) 600,000
Unrealized profit in Dec 31, 2012 Inventory (600,000) 600,000
Total Consolidated Income 12,600,000 12,900,000 14,700,000
Less: NCI Share
2011 (600,000)
2012 (525,000)
2013 (675,000)
Controlling share of Net Income 12,000,000 12,375,000 14,025,000
P 5-8
Consolidated Workpapers (Downstream sales)

Pan Corporation Acquired 100 percent of Sal Corporation's outstanding stock on January 1, 2011, for $660.000 cash. Sal's
stockholder's equity on this date consisted of $300.000 capital stock and $300.000 retained Earnings. The difference
between the fair value of Sal and the undervalying equity acquired in Sal was allocated $30.000 to Sal''s undervalued
inventory and the remainder to goodwill. The undervalued inventory items were sold by Sal during 2011. Pan made Sales
of $100.000 to Sal at gross profit of $40.000 during 2011,during 2012,Pan made sales of $120.000 to Sal at gross profit
of $48.000. One half the 2011 sales were inventoried by Sal at year-end 2011 and one-fourth the 2012 sales were
inventoried by Sal at year-end 2012. Sal owed Pan $17.000 on account at December 31, 2012.
The separate
financial statements of Pan and Sal Corporations at and for the year ended December 31, 2012 are summarized as
follows. (in thousands)

Combine Income and Retained PAN SAL

Earnings Statements
Sales 800 400
Income from Sal 108
Cost of Sales (400) (200)
Depreciation Expense (110) (40)
Other Expenses (192) (60)
Net Income 206 100
Beginning retained earnings 606 380
Less : Devidend (100) (50)
Retained earnings December 31, 2012 712 430

Balance Sheet at December 31, 2012

Cash 54 37
Receivables-net 90 60
Inventories 100 80
Other Assets 70 90
Land 50 50
Buildings-net 200 150
Equipment-net 500 400
Investment in Sal 748
Total Assets 1,812 867

Account Payable 160 47

Other liabilities 340 90
Common Stock, $10 par 600 300
Retained Earnings 712 430
Total Equities 1,812 867

Required : Prepare workpapers to consolidate the financial statements of Pan corporation and Subsidiary at the
year ended December 31, 2012
 Pan Corporation and Subsidiary Consolidation Workpaper
For the Year Ended December 31, 2012
(in dollars)

Adjustment and Elimination Consolidation

PAN SAL
Debit Credit Satetments
Income Statements
Sales 800,000 400,000 1a 120,000 1,080,000
Income from Sal 108,000 3 108,000 -
Cost of Sales (400,000) (200,000) 1c 12,000 1a,b 140,000 (472,000)
Depreciation Expense (110,000) (40,000) (150,000)
Other Expenses (192,000) (60,000) (252,000)
Net Income 206,000 100,000 206,000

Beginning retained earnings 606,000 380,000 2 380,000 606,000

Net Income 206,000 100,000 206,000
Less : Devidend (100,000) (50,000) 3 50,000 (100,000)
Retained earnings December 31, 2012 712,000 430,000 712,000

Balance Sheet at December 31, 2012

Cash 54,000 37,000 91,000
Receivables-net 90,000 60,000 6 17,000 133,000
Inventories 100,000 80,000 1c 12,000 168,000
Other Assets 70,000 90,000 160,000
Land 50,000 50,000 100,000
Buildings-net 200,000 150,000 350,000
Equipment-net 500,000 400,000 900,000
Investment in Sal 748,000 1b 20,000 2,3 768,000 -
Goodwill 2 30,000 30,000
Total Assets 1,812,000 867,000 1,932,000

Account Payable 160,000 47,000 6 17,000 190,000

Other liabilities 340,000 90,000 430,000
Common Stock, $10 par 600,000 300,000 2 300,000 600,000
Retained Earnings 712,000 430,000 712,000
-
NCI January 1, 2012 - - -
NCI December 31, 2012 - - -
-
Total Equities 1,812,000 867,000 987,000 987,000 1,932,000
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