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    Tugas Novita Putri Tesalonika (A031191105)

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    Novita Putri Tesalonika
    1) Novita Putri Tesalonika invested $600,000 for a 40% interest in Sachi. Sachi had $1.5 million in total assets including $500,000 in goodwill. 2) In 2016, Tesalonika's share of Sachi's net income was $60,000 (40% of $200,000 for 9 months). 3) As of January 4, 2016 Tesalonika's investment balance in Sachi was $624,000 after considering income, dividends, and original investment.

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    Tugas Novita Putri Tesalonika (A031191105)

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    Novita Putri Tesalonika
    26 views1 page
    1) Novita Putri Tesalonika invested $600,000 for a 40% interest in Sachi. Sachi had $1.5 million in total assets including $500,000 in goodwill. 2) In 2016, Tesalonika's share of Sachi's net income was $60,000 (40% of $200,000 for 9 months). 3) As of January 4, 2016 Tesalonika's investment balance in Sachi was $624,000 after considering income, dividends, and original investment.

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    1) Novita Putri Tesalonika invested $600,000 for a 40% interest in Sachi. Sachi had $1.5 million in total assets including $500,000 in goodwill. 2) In 2016, Tesalonika's share of Sachi's net income was $60,000 (40% of $200,000 for 9 months). 3) As of January 4, 2016 Tesalonika's investment balance in Sachi was $624,000 after considering income, dividends, and original investment.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    26 views1 page

    Tugas Novita Putri Tesalonika (A031191105)

    Uploaded by

    Novita Putri Tesalonika
    1) Novita Putri Tesalonika invested $600,000 for a 40% interest in Sachi. Sachi had $1.5 million in total assets including $500,000 in goodwill. 2) In 2016, Tesalonika's share of Sachi's net income was $60,000 (40% of $200,000 for 9 months). 3) As of January 4, 2016 Tesalonika's investment balance in Sachi was $624,000 after considering income, dividends, and original investment.

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    © All Rights Reserved
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    of 1

    Novita Putri Tesalonika

    A031191105

    P 2.1
    1) Investment Cost 40% $ 600,000
    Investmen Cost 100% $ 1,500,000
    Common Stock $ (1,000,000)
    Goodwill 100% $ 500,000
    Goodwill 40% $ 200,000
    2) Net income from Sachi: 9/12 x (40% x 200,000) $ 60,000
    3) 01/04/2016 Original Investment $ 600,000
    40% x Sachi's net income for 2016 $ 60,000
    Deduct:
    40% of dividend on 01/06, 01/09, 01/12 $ 36,000
    investment Sachi Account Balance $ 624,000
    4) Book value: 40% x (1,110,000 + 600,000) $ 684,000
    5) Loss of discountinued operations $ 50,000
    Percent Owned: 40%
    Discounted operations loss $ 20,000

    P 2.2
    Journal Entries:
    COST METHOD
    Investment in Sheon $ 200,000
    1-Jan-16
    Cash $ 200,000
    Cash $ 2,500
    3-Jan-16
    Dividens Income $ 2,500
    Cash $ 2,500
    9-Jan-16
    Dividens Income $ 2,500
    NO ENTRY
    31-Dec-16
    (cost method does not recognize net income)
    EQUITY METHOD (controlling interest 70%)
    Investment in Sheon $ 1,000,000
    Cash $ 1,000,000
    1-Jan-17
    Dividends Income $ 5,000
    Investment in Sheon $ 5,000
    Cash $ 20,000
    1-Mar-17
    Investment in Sheon $ 20,000
    Cash $ 20,000
    1-Sep-17
    Investment in Sheon $ 20,000
    Investment in Sheon $ 120,000
    31-Dec-17
    Income from Sheon $ 120,000

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