Cash $ 400 $ 400

Accounts receivablenet 700 700

Inventories (sold in 2011) 1,000 1,200
Other current assets 200 200
Land 900 1,700
Buildingsnet (10-year remaining life) 1,500 2,000
Equipmentnet (7-year remaining life) 1,200 500
Total assets $5,900 $6,700
Accounts payable $ 800 $ 800
Other current liabilities 200 200
Bonds payable (due January 1, 2016) 1,000 1,100
Capital stock, $10 par 3,000
Retained earnings 900
Total equities $5,900

400
700
1,000
200
900
1,500
1,200
5,900
800
200
1,000
3,000
900
5,900

###
###
1,200
###
1,700
2,000
500
6,700
###
###
1,100

3,900
1,170
1,680
510

4,600
1,380
###
300

1,200,000
360,000
30,000

(200)
(800)
(500)
700
(800)
(100)

(60)
(240)
(150)
210
(30)

(210)

360,000
(60,000)
(15,000)
36,000
321,000

(1,680,000)
180,000
(321,000)

60
240
150
(210)
(30)

P 3-5
Prepare a consolidated balance sheet one year after acquisition
Adjusted trial balances for Pal and Sor Corporations at December 31, 2011, are as follows (in thousand
Pal Sor
Eliminasi
Debits
pal
sor
d
k
Konsolidasi
Current assets $ 480 $ 200
480
200
Plant assetsnet 1,000 600
1000
600
Investment in Sor 840
840
0
Cost of sales 600 600
600
600
Other expenses 200 100
200
100
Dividends 100
100
0
$3,220 $1,500
3220
1500
(continued)
Pal Sor
Credits
Liabilities $ 900 $ 420
900
420
Capital stock 600 100
600
100
Retained earnings 680 180
680
180
Sales 1,000 800
1000
800
Income from Sor 40
40
0
$3,220 $1,500
3220
1500
Pal purchased all the stock of Sor for $800,000 cash on January 1, 2011, when Sors stockholders
equity consisted of $100,000 capital stock and $180,000 retained earnings. Sors assets
and liabilities were fairly valued except for inventory that was undervalued by $40,000 and sold
in 2011, and plant assets that were undervalued by $80,000 and had a remaining useful life of four
years from the date of the acquisition.
REQUIRED: Prepare a consolidated balance sheet for Pal Corporation and Subsidiary at December 31,
cost
book value
Excess
Allocation
inventory
plant asset
Goodwill

Pal Sor
Debits
Current assets $ 480 $ 200
Plant assetsnet 1,000 600

800
380
420
40 sold 2011
80 4 years
300
420

pal

Eliminasi
d
k

sor
480
1000

200
600

80

Konsolidasi
680
20
1660

Investment in Sor 840

Goodwill

840

Liabilities $ 900 $ 420

Capital stock 600 100
Retained earnings 680 180
Dividends 100

900
600
680
100

420
100
180
0

1000
40

800
0

600
200

600
100

Sales 1,000 800

Income from Sor 40

Cost of sales 600 600

Other expenses 200 100

840
400

1320
600
671
100

100
189

1800
0

40

809

0
400

60
920
111

1200
240

re as follows (in thousands):

onsolidasi

n Sors stockholders
ors assets
y $40,000 and sold
ning useful life of four

sidiary at December 31, 2011.

P 3-6
Consolidated balance sheet workpapers with goodwill and dividends
Per Corporation paid $900,000 cash for 90 percent of Sim Corporation
2011, when Sim had $600,000 capital stock and $200,000 retained e
assets and liabilities were equal to fair values. During 2011, Sim repo
declared $20,000 in dividends on December 31. Balance sheets for P
are as follows (in thousands):
Per Sim
Assets
Cash $ 84 $ 40
Receivablesnet 100 260
Inventories 700 100
Land 300 400
Equipmentnet 1,200 200
Investment in Sim 918
$3,302 $1,000
Equities
Accounts payable $ 820 $ 160
Dividends payable 120 20
Capital stock 2,000 600
Retained earnings 362 220
$3,302 $1,000
R E Q U I R E D : Prepare consolidated balance sheet workpapers for P
December 31, 2011.

Assets
Cash $ 84 $ 40
Receivablesnet 100 260
Inventories 700 100
Land 300 400
Equipmentnet 1,200 200
Investment in Sim 918
Goodwill
$3,302 $1,000
Equities
Accounts payable $ 820 $ 160
Dividends payable 120 20
Capital stock 2,000 600
Retained earnings 362 220
NCI

onsolidasi
Cost
900000
Kepemilikan penuh

84
100
700
300
1,200
918

40
260
100
400
200
-

3,302

1,000

820
120
2,000
362

160
20
600
220

3,302

1,000

90%
###

Cost
Excess

goodwill

800,000
200,000

Net income sim

40,000

Dividen

20,000

goodwill and dividends

ercent of Sim Corporations common stock on January 1,
and $200,000 retained earnings. The book values of Sims
s. During 2011, Sim reported net income of $40,000 and
31. Balance sheets for Per and Sim at December 31, 2011,

e sheet workpapers for Per Corporation and Subsidiary for

200

consolidasi
124
18
342
800
700
1,400
918
200
3,566

18
600
220
1,038

102
1,038

980
122
2,000
362
102
3,566