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    Rima Wahyu
    1. Ken AO acquired 80% of Nuro AO for $8 million on December 31, 2013. 2. In 2014, Nuro AO sold inventory to Ken AO generating a $200k profit, of which half remained in Ken AO's inventory. 3. Ken AO purchased a building from Nuro AO for $5 million, then depreciated it over 10 years using straight-line method.

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    Untitled

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    Rima Wahyu
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    1. Ken AO acquired 80% of Nuro AO for $8 million on December 31, 2013. 2. In 2014, Nuro AO sold inventory to Ken AO generating a $200k profit, of which half remained in Ken AO's inventory. 3. Ken AO purchased a building from Nuro AO for $5 million, then depreciated it over 10 years using straight-line method.

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    1. Ken AO acquired 80% of Nuro AO for $8 million on December 31, 2013. 2. In 2014, Nuro AO sold inventory to Ken AO generating a $200k profit, of which half remained in Ken AO's inventory. 3. Ken AO purchased a building from Nuro AO for $5 million, then depreciated it over 10 years using straight-line method.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    194 views4 pages

    Untitled

    Uploaded by

    Rima Wahyu
    1. Ken AO acquired 80% of Nuro AO for $8 million on December 31, 2013. 2. In 2014, Nuro AO sold inventory to Ken AO generating a $200k profit, of which half remained in Ken AO's inventory. 3. Ken AO purchased a building from Nuro AO for $5 million, then depreciated it over 10 years using straight-line method.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 4

    P7-6

    Parent Purchases Subsidiary Bonds

    On December 31, 2013, Ken AO acquired 80 percent of Nuro AO for $8,000,000 when the total
    share_x0002_holders equity of Nuro AO was $10,000,000. Below is the trial balance information of both companies
    for the year ended December 31, 2014:

    Debit Ken AO Nuro AO


    Cash $ 1,500 $ 2,000
    Account receivable $ 3,640 $ 1,900
    Interest receivable $ 100 $ -
    Inventory $ 1,600 $ 1,800
    Land $ 2,000 $ 4,200
    Equipment-net $ 2,100 $ 1,100
    Building-net $ 6,000 $ 2,000
    Investment in Nuro AO bonds $ 950 $ -
    Investment in Nuro AO $ 8,000 $ -
    Cost of sales $ 11,100 $ 8,800
    Interest expense $ - $ 200
    Other expense $ 1,700 $ 2,100
    Dividends $ 500 $ 800
    Amount $ 39,190 $ 24,900
    Credit
    Account Payable $ 2,400 $ 900
    Interest Payable $ - $ 100
    10% bonds payable $ - $ 900
    Common stock $ 10,000 $ 5,000
    Retained Earnings $ 12,000 $ 5,000
    Sales $ 14,000 $ 12,000
    Gain on sale of building $ - $ 1,000
    Interest income $ 150 $ -
    Amount $ 38,550 $ 24,900

    ADDITIONAL INFORMATION

    1. During 2014, Nuro AO sold inventory to Ken AO for $1,000,000 with gross profit of 20%. Half of this inventory
    remained at Ken AO
    2. On July 1, 2014, Ken AO purchased a building from Nuro AO by paying $5,000,000 cash. The building had useful
    life of 10 years. Ken AO depreciated the building using straight-line method. Right before the sale, Nuro AO
    recorded the building on its book for $4,000,000.
    3. On January 1, 2014, Nuro AO had $1,000,000 par of 10 percent bonds with unamortized discount of $200,000.
    These bonds matured on January 1, 2016. The bonds pay interest every January 1. At this date, Ken AO purchased all
    of Nuro AO’s bonds with a price of $900,000
    REQUIRED
    Prepare consolidation workpapers for Ken AO and Subsidiary for the year ended December 31, 2014.
    Nuro AO Elimination
    Ken AO Consolidated
    (80%) Debit Credit
    Penjualan $ 14,000 $ 12,000 3a $ 1,000 $ 25,000
    Pendapatan dari Nuro AO $ 640 5 $ 640 $ -
    Laba atas Penjualan Bangunan $ - $ 1,000 2a $ 1,000 $ -
    Pendapatan Bunga $ 150 $ - 1b $ 150 $ -
    Rugi penarikan Obligasi 1a.b $ 100 -$ 100
    Harga Pokok penjualan -$ 11,100 -$ 8,800 3b $ 100 3a $ 1,000 -$ 19,000
    Biaya Bunga $ - -$ 200 1b $ 200 $ -
    Biaya Lain-lain -$ 1,700 -$ 2,100 2b $ 50 -$ 3,750
    NCI 8 $ 160 -$ 160
    CI $ 1,990 $ 1,900 $ 1,990
    Laba Ditahan, 31 Desember 2013 $ 12,000 $ 5,000 4 $ 5,000 $ 12,000
    Dividen -$ 500 -$ 800 5.8 $ 800 -$ 500
    Laba Ditahan, 31 Desember 2014 $ 13,490 $ 6,100 $ 13,490

    Kas $ 1,500 $ 2,000 $ 3,500


    Piutang Dagang $ 3,640 $ 1,900 $ 5,540
    Piutang Bunga $ 100 $ - 7 $ 100 $ -
    Persediaan $ 1,600 $ 1,800 3b $ 100 $ 3,300
    Tanah $ 2,000 $ 4,200 $ 6,200
    Peralatan-Neto $ 2,100 $ 1,100 $ 3,200
    Gedung-Neto $ 6,000 $ 2,000 2b $ 50 2a $ 1,000 $ 7,050
    Investasi di Nuro AO $ 8,000 $ - 4 $ 8,000 $ -
    Investasi obligasi di Nuro AO $ 950 $ - 1a $ 950 $ -
    Total $ 25,890 $ 13,000 $ 28,790

    Utang Dagang $ 2,400 $ 900 $ 3,300


    Utang Bunga $ - $ 100 7 $ 100 $ -
    10% Utang Obligasi $ - $ 900 1a $ 900 $ -
    Saham Biasa $ 10,000 $ 5,000 4 $ 5,000 $ 10,000
    Laba Ditahan $ 13,490 $ 6,100 $ 13,490
    NCI, 1 Januari 2014 4 $ 2,000 $ 2,000
    NCI, 31 Januari 2014 $ -
    Total $ 25,890 $ 13,000 $ 14,200 $ 14,200 $ 28,790

    80% 100% 2014


    Investasi 8000 10000 5000 Modal Saham
    Modal 10000 5000 Laba Ditahan
    0 10000
    2000 NCI (20%)
    Peralatan (upstream)
    laba yang belum direalisasi 100

    Bangunan (Upsteam)
    Penjualan bangunan 5000
    Biaya penjualan 4000
    Laba penjualan bangunan 1000
    Amortisasi tiap tahun 100
    Tahun Depresiasi Akumulasi Nilai Buku
    2014 50 50 950
    2015 100 150 850

    Obligasi
    Investas obligasi di Nuro AO 1/1/201 1000
    Utang bligasi Nuro AO 900
    Rugi penarikan obligasi -100
    Pecemeal (pengakuan laba) 2 tahun -50

    Investasi obligasi di Nuro AO 900


    Kas 900

    Pendapatan dari Nuro AO 80


    Investasi di Nuro Ao 80

    Investasi di Nuro AO 40
    Pendapatan dari Nuro AO 40

    80% 20%
    Pendapatan 1900 1520 380
    Laba penjualan bangunan yang belum t -1000 -800 -200 upstream
    Amortisasi bangunan 50 40 10 upstream
    Laba yang belum direalisasi atas pers -100 -80 -20 upstream
    Rugi atas penarikan obligasi -100 -80 -20 upstream
    Pecemeal obligasi 50 40 10 upstream
    800 640 160 NCI

    Investasi di Nuro AO 8000


    Pendapatan dari Nuro AO 640
    Deviden -640
    Investasi di Nuro AO Desember 2014 8000

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