Group 6

1 Andi Setyo Wicaksono NPM 2106761626

2 Desita Prihapsari NPM 2106761670
3 Dwi Hastono Hadianto K. NPM 2106761701
 Best Company
Fair value consideration 96,000 Sales 180,000
Fair value NCI 32,000 Cost of Goods Sold -110,000
Total fair value consideration 128,000 Wage Expense -27,000
Book value net asset 100,000 Depreciation Expense -10,000
Total differential 28,000 Interest Expense -4,000
Fair value differential (B&E) 20,000 Other Expenses -5,000
Goodwill 8,000 Best Co's NI 24,000

*B&E depreciation (in years) 10

*Goodwill at 31 December 20X8 2,500

Differential Calculations: Net Asset

75% 25%
Power Corp. + NCI = Buildings & Equipment + Acc. Depr. +
Beginning balance 21,000 7,000 20,000
Changes (5,625) (1,875) (2,000)
Ending balance 15,375 5,125 20,000 (2,000)

Equity Method Entries on Power Corp.'s Books:

Investment in Best Co. 96,000
Cash 96,000
Record the initial investment in Best Co.

Investment in Best Co. 18,000

Income from Best Co. 18,000
Record Power Corp.'s 75% share of Best Co.'s 20X8 income

Cash 12,000
Investment in Best Co. 12,000
Record Power Corp.'s 75% share of Best Co.'s 20X8 dividend

Income from Best Co. 5,625

Investment in Best Co. 5,625
Record amortization of excess acquisition price

Book Value Calculations:

75% 25%
Power Corp. + NCI = Common Stock + Retained Earnings
Original book value 75,000 25,000 60,000 40,000
+ Net Income 18,000 6,000 24,000
- Dividends (12,000) (4,000) (16,000)
Ending book value 81,000 27,000 60,000 48,000

Basic elimination entry

Common stock 60,000
Retained earnings 40,000
Income from Best Co. 18,000
NCI in NI of Best Co. 6,000
 Dividends declared 16,000
Investment in Best Co. 81,000
NCI in NA of Best Co. 27,000

Amortized excess value reclassification entry:

Depreciation expense 2,000
Goodwill impairment loss 5,500
Income from Best Co. 5,625
NCI in NI of Best Co. 1,875

Excess value (differential) reclassification entry:

Buildings & Equipment 20,000
Goodwill 2,500
Acc. Depr. 2,000
Investment in Best Co. 15,375
NCI in NA of Best Co. 5,125

Consolidation Worksheet
Power Elimination Entries
Best Co.
Corp. DR
Income Statement
Sales 260,000 180,000
Less: COGS (125,000) (110,000)
Less: Wage Expense (42,000) (27,000)
Less: Depreciation Expense (25,000) (10,000) 2,000
Less: Interest Expense (12,000) (4,000)
Less: Other Expenses (13,500) (5,000)
Less: Impairment Loss 5,500
Income from Best Co. 12,375 18,000
Consolidated Net Income 54,875 24,000 25,500
NCI in Net Income 6,000
Controlling Interest in Net Income 54,875 24,000 31,500

Statement of Retained Earnings

Beginning Balance 102,000 40,000 40,000
Net Income 54,875 24,000 31,500
Less: Dividends Declared (30,000) (16,000)
Ending Balance 126,875 48,000 71,500

Balance Sheet
Cash 47,500 21,000
Accounts Receivable 70,000 12,000
Inventory 90,000 25,000
Land 30,000 15,000
Buildings & Equipment 350,000 150,000 20,000
Less: Accumulated Depreciation (145,000) (40,000)
Investment in Best Co. 96,375 -
Goodwill 2,500
Total Assets 538,875 183,000 22,500

Accounts Payable 45,000 16,000

Wages Payable 17,000 9,000
Notes Payable 150,000 50,000
Common Stock 200,000 60,000 60,000
Retained Earnings 126,875 48,000 71,500
NCI in NA of Best Co.
Total Liabilities & Equity 538,875 183,000 131,500
- -
 Item

Cash
Accounts Receivable
Inventory
Land
Building & Equipment
Investment in Shine Company
Cost of Goods Sold
Wage Expense
Depreciation Expense
Interest Expenses
et Expense Other Expense
Depreciation Loss on impairment Dividends Declared
Goodwill Expense of GW Accumulated Depreciation
8,000 Accounts Payable
(5,500) 2,000 5,500 Wages Payable
2,500 Notes Payable
Common Stock
Retained Earnings
Sales
Income from Shine Corporation
Total
Elimination Entries
Consolidated
CR

440,000
(235,000)
(69,000)
(37,000)
(16,000)
(18,500)
(5,500)
5,625 -
5,625 59,000
1,875 (4,125)
7,500 54,875

102,000
7,500 54,875
16,000 (30,000)
23,500 126,875

68,500
82,000
115,000
45,000
520,000
2,000 (187,000)
96,375 -
2,500
98,375 646,000

61,000
26,000
 200,000
200,000
23,500 126,875
32,125 32,125
55,625 646,000
-
 Power Corporation Best Company
Debit ($) Credit ($) Debit ($) Credit ($)
47,500 21,000
70,000 12,000
90,000 25,000
30,000 15,000
350,000 150,000
96,375
125,000 110,000
42,000 27,000
25,000 10,000
12,000 4,000
13,500 5,000
30,000 16,000
145,000 40,000
45,000 16,000
17,000 9,000
150,000 50,000
200,000 60,000
102,000 40,000
260,000 180,000
12,375
931,375 931,375 395,000 395,000
 Best Company
Fair value consideration Best 96,000 Sales 200,000
Fair value NCI 32,000 Cost of Goods Sold (114,000)
Total fair value consideration 128,000 Wage Expense (20,000)
Book value net asset 100,000 Depreciation Expense (10,000)
Total differential 28,000 Interest Expense (4,000)
Fair value differential (B&E) 20,000 Other Expenses (16,000)
Goodwill 8,000 Best Co's NI 36,000

*B&E depreciation (in years) 10

*Goodwill at 31 December 20X9 2,500

Excess Value (Differential) Calculations: Net Asset

75% 25%
Power Corp. + NCI = Buildings & Equipment + Acc. Depr. +
Beginning balance 19,500 6,500 20,000 (2,000)
Changes (5,625) (1,875) (2,000)
Ending balance 13,875 4,625 20,000 (4,000)

Equity Method Entries on Power Corp.'s Books:

Investment in Best Co. 27,000
Income from Best Co. 27,000
Record Power Corp.'s 75% share of Best Co.'s 20X9 income

Cash 15,000
Investment in Best Co. 15,000
Record Power Corp.'s 75% share of Best Co.'s 20X9 dividend

Income from Best Co. 5,625

Investment in Best Co. 5,625
Record amortization of excess acquisition price

Book Value Calculations:

75% 25%
Power Corp. + NCI = Common Stock + Retained Earnings
Original book value 81,000 27,000 60,000 48,000
+ Net Income 27,000 9,000 36,000
- Dividends (15,000) (5,000) (20,000)
Ending book value 93,000 31,000 60,000 64,000

Basic elimination entry

Common stock 60,000
Retained earnings 48,000
Income from Best Co. 27,000
NCI in NI of Best Co. 9,000
Dividends declared 20,000
Investment in Best Co. 93,000
NCI in NA of Best Co. 31,000
Amortized excess value reclassification entry:
Depreciation expense 2,000
Goodwill impairment loss 5,500
Income from Best Co. 5,625
NCI in NI of Best Co. 1,875

Excess value (differential) reclassification entry:

Buildings & Equipment 20,000
Goodwill 2,500
Acc. Depr. 4,000
Investment in Best Co. 13,875
NCI in NA of Best Co. 4,625

Consolidation Worksheet
Power Elimination Entries
Corp. Best Co.
DR
Income Statement
Sales 290,000 200,000
Less: COGS (145,000) (114,000)
Less: Wage Expense (35,000) (20,000)
Less: Depreciation Expense (25,000) (10,000) 2,000
Less: Interest Expense (12,000) (4,000)
Less: Other Expenses (23,000) (16,000)
Less: Impairment Loss 5,500
Income from Best Co. 25,500 27,000
Consolidated Net Income 75,500 36,000 34,500
NCI in Net Income 9,000
Controlling Interest in Net Income 75,500 36,000 43,500

Statement of Retained Earnings

Beginning Balance 126,875 48,000 48,000
Net Income 75,500 36,000 43,500
Less: Dividends Declared (30,000) (20,000)
Ending Balance 172,375 64,000 91,500

Balance Sheet
Cash 68,500 32,000
Accounts Receivable 85,000 14,000
Inventory 97,000 24,000
Land 50,000 25,000
Buildings & Equipment 350,000 150,000 20,000
Less: Accumulated Depreciation (170,000) (50,000) -
Investment in Best Co. 106,875 -
Goodwill 2,500
Total Assets 587,375 195,000 22,500

Accounts Payable 51,000 15,000

Wages Payable 14,000 6,000
Notes Payable 150,000 50,000
Common Stock 200,000 60,000 60,000
Retained Earnings 172,375 64,000 91,500
NCI in NA of Best Co.
Total Liabilities & Equity 587,375 195,000 151,500
- -
et Expense Goodwill
Depreciation
Impairment Loss
Goodwill Expense
8,000
(5,500) 2,000 (5,500)
2,500
Elimination Entries
Consolidated
CR

490,000
(259,000)
(55,000)
(37,000)
(16,000)
(39,000)
(5,500)
5,625 4,125
5,625 82,625
1,875 (7,125)
7,500 75,500

126,875
7,500 75,500
20,000 (30,000)
27,500 172,375

100,500
99,000
121,000
75,000
- 520,000
4,000 (224,000)
106,875 -
2,500
110,875 694,000

66,000
20,000
 200,000
200,000
27,500 172,375
35,625 35,625
63,125 694,000
-
 Item Power Corporation Best Company
Debit ($) Credit ($) Debit ($) Credit ($)
Cash 68,500 32,000
Accounts Receivable 85,000 14,000
Inventory 97,000 24,000
Land 50,000 25,000
Building & Equipment 350,000 150,000
Investment in Shine Company 106,875
Cost of Goods Sold 145,000 114,000
Wage Expense 35,000 20,000
Depreciation Expense 25,000 10,000
Interest Expenses 12,000 4,000
Other Expense 23,000 16,000
Dividends Declared 30,000 20,000
Accumulated Depreciation 170,000 50,000
Accounts Payable 51,000 15,000
Wages Payable 14,000 6,000
Notes Payable 150,000 50,000
Common Stock 200,000 60,000
Retained Earnings 126,875 48,000
Sales 290,000 200,000
Income from Shine Corporation 25,500
Total 1,027,375 1,027,375 429,000 429,000
Wages Payable 20,000
Notes Payable 200,000
220,000
Stockholder's Equity
Common Stock 200,000
Retained Earnings 172,375
Total Controlling Interest 372,375
Noncontrolling Interest 35,625
TOTAL LIABILITIES & EQUITY 628,000