Nama : Hanifah Nabilah Ginting

NIM : 7183220030
Kelas : Akuntansi A / 2018

Power Corporation Best Company

Debit credit Debit Credit
Account
Cash $ 47.500 21,000
Account Receivable 70,000 12,000
Inventory 90,000 25,000
Land 30,000 15,000
Building and equipment 350,000 150,000
Invesment in Best co Stock 96,375
Cost of Goods Sold 125,000 110,000
Wage expense 42,000 27,000
Depreciation expense 25,000 10,000
Interest expense 12,000 4,000
Other expense 13,500 5,000
Dividend declared 30,000 16,000
Accumulated depreciation 145,000 40,000
Account payable 45,000 16,000
Wages payable 17,000 9,000
Notes Payable 150,000 50,000
Common stock 200,000 60,000
Retained Earning 102,000 40,000
Sales 260,000 180,000
Income from subsidary 12,375
931,375 931,375 $ 395.000 $ 395.000
Power ----> punya 75% Best Company 1 January 2018 $96.000
Fair Value Non Controlling Interest $32.000
Book Value Net Assets $100.000

book value = Fair Value Book Value : Nilai Perolehan

Building and Equipment Undervalue : $20.000 ( Undervalue) Fair Value : Nilai Wajar
Uselful Life : 10 Year Net Asset : Asset - Liability
Goodwill Impaired : $2.5000 Net Asset : Equity
Excess Value 100%
NCL interest = (100/75 *96000) $ 128,000.00
book value net asset = $ 100,000.00
Excess Value = $ 28,000.00

Undervalue Building and Equipment $ 20,000.00

goodwill 100 % $ 8,000.00

Excess Value 75 %
Ncl interest = 75%*128.000 $ 96,000.00
book value net asset = (75%*100.000) $ 75,000.00
Excess Value $ 21,000.00

Undervalue Building and Equipment $ 15,000.00

15000

Goodwill $ 6,000.00

1/1/X8 1/1/X8
75% goodwill 100% goodwill
$ 8.000x0.75 6,000 $ 8.000x100% 8,000

75% identifiable excess 75% identifiable excess

$ 20.000 x0,75 15,000 $ 20.000 x100% 20,000

75% book value 75% book value

$ 100.000x0.75 75,000 $ 100.000x100% 100,000
 Income Statement
Best company
for the year end 31 desember 20x8

Sales 180,000
Cogs 110,000
Gross Profit 70,000
Operating Expesne
Depreciation Expense 10,000
Interest Expense 4,000
Other Expense 5,000
Wages Expense 27,000
Net Income 24,000

Building and equipment 20.000

Depreciation per year
20.000 / 10
2,000
Good will 8.000
impairment loss 8.000-2.500 5.500
Fair value of power corporation
Add the fair value of the non controlling interest
Total fair value of consideration

Fair value of power consideration +FV of the NCL interest

Book value of best company net asset
Common Stock best company 60,000
Retained earning best company 40,000

Difference between fair value and book value

 96,000 Power corporation the acquisition on
32,000 Invesment in best company
128,000 Cash
Record purchase of best company sto
128,000
Invesment in best company 75% x 2
Income from best company
Record power corporation 75% share
100,000
28,000 Cash
Invesment in best company
Record power corporation 75% share

Income from best company (2.000 x7

Invesment in best company
Record amortization of building

Income from best company (5.500X7

invesment in best company
Record amortization of loss impairme
 rporation the acquisition on its books with the following entry
nt in best company 96,000
96,000
urchase of best company stock

nt in best company 75% x 24.00 18,000

me from best company 18,000
ower corporation 75% share of best company 20x8 Income

75% x 16.000 12,000

ment in best company 12,000
ower corporation 75% share of best company 20x8 dividend

rom best company (2.000 x75%/1 1,500

esment in best company 1,500
mortization of building

rom best company (5.500X75%) 4,125

esment in best company 4,125
mortization of loss impairment goodwill
elimination entries
1) Eliminate income from subsidary 3) Eliminated beginning in
Income from subsidary (18.000-1.500-4.125) $ 12,375.00 common stock
devidend declared $ 12,000.00 Retained earning
invesment in best company $ 375.00 Differential
Invesment in best co
2) Assign income to noncontrolling Noncontrolling inte
Income to noncontrolling $ 4,125.00 $28.000= ($96.000 + $ 3
Interest Dividend declared $ 4,000.00
NCL Interest $ 125.00 4) Assign begining differe
($4.125 = ($ 24.000-$2.000-$5.500) x 25% Building and equipmen
Subsidary net income $ 24,000.00 Goodwill
Amortizaion building and equipment $ (2,000.00) Differential
Impairment goodwill $ (5,500.00)
$ 16,500.00 5) Amortize differential re
Noncontrolling expense $ 0.25 Depreciation expense
$ 4,125.00 Accumulated deprec
$2.000=$20.000 / 10 ye

6) Goodwill for impairme

Goodwill impairment l
Goodwill
3) Eliminated beginning invesment
common stock $ 60,000.00
Retained earning $ 40,000.00
Differential $ 28,000.00
Invesment in best company stock $ 96,000.00
Noncontrolling interest $ 32,000.00
$28.000= ($96.000 + $ 32.000)-$100.000

4) Assign begining differential

Building and equipment $ 20,000.00
Goodwill $ 8,000.00
Differential $ 28,000.00

5) Amortize differential related to buildings and equipment

Depreciation expense $ 2,000.00
Accumulated depreciation $ 2,000.00
$2.000=$20.000 / 10 years

6) Goodwill for impairment

Goodwill impairment loss $ 5,500.00
Goodwill $ 5,500.00
 Power Corporation and best company
Consolidated worksheet
Deesember 31,20x8
Power Best
corporation Company
Income statement
Sales $ 260,000.00 $ 180,000.00
less cost of good sold $ (125,000.00) $ (110,000.00)
less Wage expense $ (42,000.00) $ (27,000.00)
Less Depreciation expense $ (25,000.00) $ (10,000.00)
Less interest expense $ (12,000.00) $ (4,000.00)
less other expense $ (13,500.00) $ (5,000.00)
less Goodwill impairment loss
income from subsidary $ 12,375.00
Consolidated net income $ 54,875.00 $ 24,000.00
Non controllling in net income
Controlling interest net income $ 54,875.00 $ 24,000.00

Statement of retained earning

Retained earnings $ 102,000.00 $ 40,000.00
Net income $ 54,875.00 $ 24,000.00
Less dividend declared $ (30,000.00) $ (16,000.00)

Ending balance $ 291,500.00 $ 48,000.00

.5
Balance sheet
Cash $ 47,500.00 $ 21,000.00
Account receivable $ 70,000.00 $ 12,000.00
Inventory $ 90,000.00 $ 25,000.00
Land $ 30,000.00 $ 15,000.00
Building and equipment $ 350,000.00 $ 150,000.00
Invesment in best company stock $ 96,375.00

Differential
Goodwill
Debit $ 683,875.00 $ 223,000.00

Accumulated depreciation $ 145,000.00 $ 40,000.00

Account payable $ 45,000.00 $ 16,000.00
Wage payable $ 17,000.00 $ 9,000.00
Notes payable $ 150,000.00 $ 50,000.00
Common stock $ 200,000.00 $ 60,000.00
Retained earning $ 126,875.00 $ 48,000.00
Noncontrolling in net assets best company

Total liabilities and equity $ 683,875.00 $ 223,000.00

and best company
worksheet
31,20x8
Elimination entries
Consolidated
Debit Credit

$ 440,000.00
$ (235,000.00)
$ (69,000.00)
$ 2,000.00 $ 37,000.00
$ (16,000.00)

$ 5,500.00 $ 5,500.00
$ 12,375.00 $ 24,750.00
$ 19,875.00 $ 59,000.00
$ 4,125.00 $ (4,125.00)
$ 24,000.00 $ 54,875.00

$ 40,000.00 $ 102,000.00
$ 24,000.00 $ 54,875.00
12,000 $ (30,000.00)
4,000
$ 64,000.00 16,000 $ 126,875.00

$ 68,500.00
$ 82,000.00
$ 115,000.00
$ 45,000.00
$ 20,000.00 $ 520,000.00
$ 375.00
$ 96,000.00
$ 28,000.00 $ 28,000.00
$ 8,000.00 $ 5,500.00 $ 2,500.00
$ 833,000.00

$ 2,000.00 $ 187,000.00
$ 61,000.00
$ 26,000.00
$ 200,000.00
$ 60,000.00 $ 200,000.00
$ 64,000.00 $ 16,000.00 $ 126,875.00
 $ 125.00
$ 32,000.00 $ 32,125.00
$ 116,000.00 $ 148,000.00 $ 833,000.00