Nama : Yandra Febriyanti

No Bp : 1810531018

P2-23

1) Equity Method Entroes on Peanut Company’s books

Record the Initial Investment in Snoopy Company

Investment in Snoopy Company $ 300,000

Cash $ 300,000

Record Peanut Company’s 100% Share of Snoopy Company’s 20x8 Income

Investment in Snoopy Company $ 75,000

Income from Snoopy Company $ 75,000

Record Peanut Company’s 100% Share of Snoopy Company’s 20x8 dividend

Cash $ 20,000
Investment in Snoopy Company $ 20,000

2) Book Value :
Total =
Book Common + Retained

Value Stock Earnings

Beginning Book 300,000 200,000 100,000

Value

Net Income 75,000 75,000

Less: Dividends (20,000) (20,000)

Ending Book 355,000 200,000 155,000

 Value

Pada 1/1/x8 = $300,000 Initial Investment In Snoopy Company

Goodwill = 0
Identifiable Excess = 0
Book Value = CS + RE = 300,000

Pada 12/31/x8 = $300,000 Net Investment In Snoopy Company

Goodwill = 0
Identifiable Excess = 0
Book Value = CS + RE = 355,000

Basic Elimination Entry

Common stock 200,000

Retained earnings 100,000
Income from snoopy company 75,000
Dividends declared 20,000
Investment in snoopy company 355,000

Optional acc depreciation elimination entry

Acccumlated Depreciation 10,000

Building & Equipment 10,000
 Elimination Entries Consolidated
Peanut Co. Snoopy Co.
  DR CR  
Income Statement
Sales $ 800,000 $ 250,000 $ 1,050,000
Less: COGS $ (200,000) $ (125,000) $ (325,000)
$
Depreciation Expense $ (50,000) $ (10,000) (60,000)
Other Expense $ (225,000) $ (40,000) $ (265,000)
Income from Snoopy Company $ 75,000 $ 75,000 $ -
Net Income $ 400,000 $ 75,000 $ 75,000 $ 400,000

Statement Retained Earnings

Beginning Balance $ 225,000 $ 100,000 $ 100,000 $ 225,000
Net Income $ 400,000 $ 75,000 $ 75,000 $ - $ 400,000
Less : Dividends Declared $ (100,000) $ (20,000) $ 20,000 $ (100,000)
Ending Balace $ 525,000 $ 155,000 $ 175,000 $ 20,000 $ 525,000

Balance Sheet
Cash $ 130,000 $ 80,000 $ 210,000
Acc. Receivable $ 165,000 $ 65,000 $ 230,000
Inventory $ 200,000 $ 75,000 $ 275,000
Investment in Snoopy Company $ 355,000 $ 355,000 $ -
Land $ 200,000 $ 100,000 $ 300,000
Building & Equipment $ 700,000 $ 200,000 $ 10,000 $ 890,000
Less : Accumulated
Depreciation $ (450,000) $ (20,000) $ 10,000 $ (460,000)
Total Assets $ 1,300,000 $ 500,000 $ 10,000 $ 365,000 $ 1,445,000

Accounts Payable $ 75,000 $ 60,000 $ 135,000

Bonds Payable $ 200,000 $ 85,000 $ 285,000
Common Stock $ 500,000 $ 200,000 $ 200,000 $ 500,000
Retained Earnings $ 525,000 $ 155,000 $ 175,000 $ 20,000 $ 525,000
Total Liabilities & Equity $ 1,300,000 $ 500,000 $ 375,000 $ 20,000 $ 1,445,000

P2-24
1) Equity Method Entries on Peanut Company’s books

Record Peanut Company’s 100% Share pf Snoopy Company’s 20x9 Income

Investment in Snoopy Company $ 80,000

Income from Snoopy Company $ 80,000

Record Peanut Company’s 100% Share pf Snoopy Company’s 20x9 Dividend

Cash $ 30,000
Investment in Snoopy Company $ 30,000

2) Pada 1/1/x9 = $355,000 Net Investment In Snoopy Company

Goodwill = 0
Identifiable Excess = 0
Book Value = CS + RE = 355,000

Pada 12/31/x9 = $405,000 Net Investment In Snoopy Company

Goodwill = 0
Identifiable Excess = 0
Book Value = CS + RE = 405,000

Book Value :
Total =
Book Common + Retained

Value Stock Earnings

Beginning Book 355,000 200,000 155,000

Value

Net Income 80,000 80,000

Less: Dividends (30,000) (30,000)

Ending Book 405,000 200,000 205,000

Basic Elimination Entry

Common stock 200,000

Retained earnings 155,000
Income from snoopy company 80,000
Dividends declared 30,000
Investment in snoopy company 405,000

Optional acc depreciation elimination entry :

Acccumlated Depreciation 10,000

Building & Equipment 10,000
 Elimination Entries Consolidated
Peanut Co. Snoopy Co.
  DR CR  
Income Statement
Sales $ 850,000 $ 300,000     $ 1,150,000
Less: COGS $ (270,000) $ (150,000)     $ (420,000)
Depreciation Expense $ (50,000) $ (10,000)     $ (60,000)
Other Expense $ (230,000) $ (60,000)     $ (290,000)
Income from Snoopy Company $ 80,000   $ 85,000   $ -
Net Income $ 380,000 $ 80,000 $ 85,000   $ 380,000
 
Statement Retained Earnings          
Beginning Balance $ 525,000 $ 155,000 $ 155,000   $ 525,000
Net Income $ 380,000 $ 80,000 $ 80,000 $ - $ 380,000
Less : Dividends Declared $ (225,000) $ (30,000)   $ 30,000 $ (225,000)
Ending Balace $ 680,000 $ 205,000 $ 235,000 $ 30,000 $ 680,000
 
Balance Sheet
Cash $ 230,000 $ 75,000     $ 305,000
Acc. Receivable $ 190,000 $ 80,000     $ 270,000
Inventory $ 180,000 $ 100,000     $ 280,000
Investment in Snoopy Company $ 405,000     $ 405,000 $ -
Land $ 200,000 $ 100,000     $ 300,000
Building & Equipment $ 700,000 $ 200,000   $ 10,000 $ 890,000
Less : Accumulated Depreciation $ (500,000) $ (30,000) $ 10,000   $ (520,000)
Total Assets $ 1,405,000 $ 525,000 $ 10,000 $ 415,000 $ 1,525,000
 
Accounts Payable $ 75,000 $ 35,000     $ 110,000
Bonds Payable $ 150,000 $ 85,000     $ 235,000
Common Stock $ 500,000 $ 200,000 $ 200,000   $ 500,000
Retained Earnings $ 680,000 $ 205,000 $ 235,000 $ 30,000 $ 680,000
Total Liabilities & Equity $ 1,405,000 $ 525,000 $ 435,000 $ 30,000 $ 1,525,000