Pindi Yulinar Rosita

008201905023

1 Answer
a. The Revenue test b. The operating-profit test
The Revenue test = ( $ 600.000 + $ 105.000) X 10% The operating-profit test = ($ 85.000 + $ 10.000) X 1
= $ 70,500 = $ 9,500
Reportable segment : Reportable segment :
Food $ 350,000 Food $ 45,000
Chemical $ 150,000 Chemical $ 23,000
Beverages $ 72,000 Beverages $ 18,000

c. Asset test = ( $ 645.000 X 10%)

= $ 64,500
Reportable segment :
Food $ 310,000 31000
Chemical $ 150,000

2 Reportabel segment test

Test value $ 600.000 consolidate sales X 75 % = $450.000
Unaffiliated sales : Food $ 300,000
Chemical $ 110,000
Beverages $ 62,000
Total $ 472,000
Sales by reportable segments ($472,000) are greater than the
$450,000 test value and no additional reportable segments are
required.
85.000 + $ 10.000) X 10%

900
1 Operating segments (foreign geographic areas):
Revenue test
Test Value Reportable
Revenue
($ 240.000 X 10%)Geographic Area
Canada $ 24,000 ≥ $ 24,000 yes
Mexico $ 20,000 < $ 24,000 no
Brazil $ 22,000 < $ 24,000 no
South Africa $ 25,000 ≥ $ 24,000 yes
United States $ 149,000 ≥ $ 24,000 yes
Total segment Revenue $ 240,000

Asset test
Test Value Reportable
Assets
($ 250.000 X 10%)Geographic Area
Canada $ 30,000 ≥ $ 25,000 yes
Mexico $ 19,000 < $ 25,000 no
Brazil $ 20,000 < $ 25,000 no
South Africa $ 31,000 ≥ $ 25,000 yes
United States $ 150,000 ≥ $ 25,000 yes
Total segment Asset $ 250,000

Profit Test
Test Value Reportable
Profit
($ 50.000 X 10%)Geographic Area
Canada $ 6,000 ≥ $ 5,000 yes
Mexico $ 8,000 ≥ $ 5,000 yes
Brazil $ 5,000 ≥ $ 5,000 yes
South Africa $ 7,000 ≥ $ 5,000 yes
United States $ 24,000 ≥ $ 5,000 yes
Total segment Asset $ 50,000
2 All five geographic segments (Canada, Mexico, Brazil, South Africa and United States) are reportable segme

3 DaP Corporation
Schedule of Operations in Different Geographic Segments
for the year ended December 31, 2011
United States Mexico Brazil South Africa
Sales to unaffiliated customers $ 120,000 $ 20,000 $ 22,000 $ 15,000
Intersegment transfers $ 29,000 $ 10,000
Total revenue $ 149,000 $ 20,000 $ 22,000 $ 25,000
Operating profit $ 24,000 $ 8,000 $ 5,000 $ 7,000
Identifiable assets $ 150,000 $ 19,000 $ 20,000 $ 31,000

Reconciliations :
Recvenue Assets
Total revenue of reportable segments $ 240,000 Total assets of reportable segments
Other revenues $ - Other assets
Elimination of intersegment revenues (-2 50,000) Consolidated total
Total consolidated revenue $ 190,000

Profit or loss
Total profit or loss of reportable segments $ 50,000
Other profit or loss $ -
Elimination of intersegment profit or loss $ -
Unallocated amounts $ -
Consolidated income before taxes $ 50,000
s) are reportable segments

ments

Canada Total
$ 13,000 $ 190,000
$ 11,000 $ 50,000
$ 24,000 $ 240,000
$ 6,000 $ 50,000
$ 30,000 $ 250,000

$ 250,000
$ -
$ 250,000
Answer
Mel Dav
2012 income to divide ($ 25.000 - $ 4.000) $ 21,000
Salary to Mel $ 18,000 $ 18,000
Remainder to divide $ 3,000
Devided equally (-2 3,000) $ 1,500 $ 1,500
$ -
2011 income understatement $ 4,000
Divided in the 2011 60:40 ratio (-2 4,000) $ 2,400 $ 1,600
Income allocation $ - $ 21,900 $ 3,100
 Answer
1 Profit allocation schedule
Alex Carl Erika
Net loss for 2011 (-2 12,000)
Salary to Alex (-2 10,000) $ 10,000
Loss to divide (-2 22,000)
Interest Allowances :
Alex $ 60.000 X 10% (-2 6,000) $ 6,000
Erika $ 100.000 X 10% (-2 10,000) $ 10,000
Erika $ 110.000 X 10% (-2 11,000) $ 11,000
Loss to divide (-2 49,000)
Divie 30 : 30 : 40 49,000 (-2 14,700) (-2 14,700) (-2 19,600)
Allocation to loss $ - $ 1,300 (-2 4,700) (-2 8,600)

2 Alex, Carl, and Erika Partnership

Statement of Partnership Capital
for the year ended December 31, 2011
Alex Carl Erika Total
Capital January 1, 2011 $ 60,000 $ 90,000 $ 110,000 $ 260,000
Add : Additional investment $ - $ 30,000 $ 20,000 $ 50,000
$ 60,000 $ 120,000 $ 130,000 $ 310,000
Deduct : withdrawals (-2 10,000) (-2 10,000)
Deduct : drawing (-2 8,000) (-2 8,000)
Net contributed capital $ 52,000 $ 120,000 $ 120,000 $ 292,000
Net loss for 2011 $ 1,300 (-2 4,700) (-2 8,600) (-2 12,000)
Capital, december 31 2011 $ 53,300 $ 115,300 $ 111,400 $ 280,000

3 Correcting entry :
Erika Capital $ 1,200
Alex Capital $ 1,100
Carl Capital $ 100
To correct capital accounts for error in loss allocation:
Alex Carl Erika
Correct loss allocation $ 1,300 (-2 4,700) (-2 8,600)
Less : Actual loss allocation (-2 200) $ 4,800 $ 7,400
Adjustment $ 1,100 $ 100 (-2 1,200)