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AKL Kel 8 - P5-1 P5-4 P5-8 - Eka Nisrina
AKL Kel 8 - P5-1 P5-4 P5-8 - Eka Nisrina
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
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)
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
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)
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)