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Soal Asistensi AKL Week 3
Soal Asistensi AKL Week 3
Week 3
The Consolidation of Less-than-Wholly-Owned Subsidiaries with No Differential
Teaching Assistant Team
Problem I: Consolidated Worksheet and Balance Sheet on The Acquisition Date (Equity
Method)
Jajang Company acquired 90 percent of Myeon Company’s outstanding common stock for
$270.000 on January 1, 2X20, when the book value of Myeon’s net assets was equal to
$300.000. Jajang uses equity method to account for investments. The following is the trial
balance data for Jajang and Myeon as of January 1, 2X20:
Required:
a. Prepare the journal entry on Jajang’s books for the acquisition on Myeon on January
1, 2X20
b. Prepare a consolidation worksheet on the acquisition date, January 1, 2X20, in good
form.
Jajang Company acquired 90 percent of Myeon Company’s outstanding common stock for
$270.000 on January 1, 2X20, when the book value of Myeon’s net assets was equal to
$300.000. Jajang uses equity method to account for investments. The following is the trial
balance data for Jajang and Myeon as of December 31, 2X20:
Jajang Company Myeon Company
Accounts
Debit ($) Credit ($) Debit ($) Credit ($)
Cash
158,000 80,000
Accounts Receivable
165,000 65,000
Inventory
200,000 75,000
Investment in Myeon Company
319,500 -
Land
200,000 100,000
Building & Equipment
700,000 200,000
COGS
200,000 125,000
Depreciation Expense
50,000 10,000
S&A Expenses
225,000 40,000
Dividends Declared
100,000 20,000
Accumulated Depreciation 450,000 20,000
Accounts Payable 75,000 60,000
Bonds Payable 200,000 85,000
Common Stock 500,000 200,000
Retained Earnings 225,000 100,000
Sales 800,000 250,000
Income from Myeon 67,500 -
Total 2,317,500 2,317,500 715,000 715,000
Required:
a. Prepare any equity method entry(ies) related to the investment in Myeon Company
during 2X20
b. Prepare a consolidation worksheet for 2X20 in good form.
Jajang Company acquired 90 percent of Myeon Company’s outstanding common stock for
$270.000 on January 1, 2X20, when the book value of Myeon’s net assets was equal to
$300.000. Problem 2 summarizes the first year of Jajang’s ownership of Myeon. Jajang uses
the equity method to account for investments. The following is the trial balance data for
Jajang and Myeon as of December 31, 2X21:
Jajang Company Myeon Company
Accounts
Debit ($) Credit ($) Debit ($) Credit ($)
Cash 255,000 75,000
Accounts Receivable 190,000 80,000
Inventory 180,000 100,000
Investment in Myeon
364,500 0
Company
Land 200,000 100,000
Building & Equipment 700,000
200.000
COGS 270,000 150,000
Depreciation Expense 50,000 10,000
S&A Expenses 230,000 60,000
Dividends Declared 225,000 30,000
Accumulated Depreciation 500,000 30,000
Accounts Payable 75,000 35,000
Bonds Payable 150,000 85,000
Common Stock 500,000 200,000
Retained Earnings 517,500 155,000
Sales 850,000 300,000
Income from Myeon 72,000
Total 2,664,500 2,664,500 805,000 805,000
Required:
a. Prepare any equity method entry(ies) related to the investment in Myeon Company
during 2X21
b. Prepare a consolidation worksheet for 2X21 in good form.