NAMA : MUH.

SYUKUR
NIM : A031191077
MATKUL : AKUNTANSI KEUANGAN LANJUTAN II
TUGAS : PROBLEM P9-1 DAN P9-5

JAWABAN
PROBLEM P9-1

Polly and Subsidiari

es Income Allocation
Schedule For the year
2014

Polly Sally Jolly Wally

Separate earnings $ 450.000 $ 25.000 $ 100.000 $ 50.000
Add: Realized profit from sale
of land $ 10.000 $ 5.000
Less: Unrealized profit from
sale of land $ -15.000 $ -10.000
Separate realized earnings $ 450.000 $ 235.000 $ 100.000 $ 45.000

Allocate Wally's income

50% to Jolly $ 22.500 $ -22.500
10% to Sally $ 4.500 $ -4.500
30% to Polly $ 13.500 $ -13.500

$ 122.500
Allocate Jolly's income
70% to Sally $ 85.750 $
-85.750
$ 325.250
Allocate Sal's income
80% to Polly $ 260.200 $ -260.200

Patent $ -40.000
Controlling share of net
income $ 723.700
Noncontroling interest share $ 65.050 $ 36.750 $4.500
PROBLEM P9-5
Preliminary computations

Shin's separate income (Sales - Expenses) $ 40,000

Shin's dividend income $ 4,000
Shin's income $ 44,000
Pamela's share of income (90%) $ 39,600
Intercompany dividend adjustment $ (4,000)
1
Income from Shin $ 35,600

Pamela's dividend - beginning $ 40,000

Intercompany dividend adjustment $ (4,000)
2
Pamela's dividend - ending $ 36,000

Investment in Shin - beginning $ 315,000

Add: Pamela's share of Shin's income $ 39,600
Less: Dividend from Shin (90%) $ 27,000
3
Investment in Shin - ending $ 327,600

Implied fair value (100%) $ 350,000

Book value of equity $ 340,000
Goodwill $ 10,000

Consolidation workpaper entries

a Income from Shin $ 35,600
Dividend income $ 4,000
Dividends $ 27,000
Investment in Shin $ 12,600
To eliminate income from Shin
b Noncontrolling interest share $ 4,400
Dividends $ 3,000
Noncontrolling interest $ 1,400
c Common stock - Shin $ 200,000
Retained earnings - Shin $ 140,000
Goodwill $ 10,000
Investment in Shin $315,000
Noncontrolling interest $ 35,000
To eliminate equity accounts and
recognize goodwill

d Treasury stock $ 80,000

Investment in Pamela $ 80,000
To recognize treasury stock under
 treasury stock approach
Pamela Incorporated and Subsidiary
Consolidated Workpaper
For year ended December 31, 2014
Pamela Shin Adjustments Consolidated
and eliminations Statements
Debits Credits
Income State
ment
Sales $ 220,000 $ 110,000 $ 330,000
Income from
Shin $ 35,600 a $ 35,600 $ -
Dividend inco
me $ 4,000 a $ 4,000 $ -
Expenses incl
uding COGS $ (100,000) $ (70,000) $ (170,000)
Noncontrollin
g interest sha
re b $ 4,400 $ (4,400)
Controlling s
hare of net i
ncome $ 155,600 $ 44,000 $ 155,600
Retained Ear
nings Statem
ent
Retained ear
nings - Pamel
a $ 308,000 $ 308,000
Retained ear
nings - Shin $ 140,000 c $ 140,000

Dividends $ (36,000) $ (30,000) a $ 27,000 $ (36,000)

$ 3,0
b 00
Controlling s
hare of net i
ncome $ 155,600 $ 44,000 $ 155,600
Retained ear
nings - Dece
mber 31 $ 427,600 $ 154,000 $ 427,600

Balance She
et
Other assets $ 600,000 $ 274,000 $ 874,000
Investment in
Shin - 90% $ 327,600 a $ 12,600 $ -
$ 315,0
c 00
Investment in
Pamela - 10
% $ 80,000 d $ 80,000 $ -
Goodwill c $ 10,000 $ 10,000
 $ 927,600 $ 354,000 $ 884,000

Common stoc
k - Pamela $ 500,000 $ 500,000
Common stoc
k - Shin $ 200,000 c $ 200,000
Retained ear
nings $ 427,600 $ 154,000 $ 427,600
$ 927,600 $ 354,000
Treasury stoc
k d $ 80,000 $ (80,000)
Noncontrollin
g interest b $ 1,400 $ 36,400
$ 35,0
c 00
$ 884,000