NIKEN LIZA MAYASARI

4112101091 (AM 4C)

P4-7
EQUITY METHOD
JURNAL TRANSAKSI AWAL
1/1/2016 Investment in Score Co.
Equity in Subsidiary income

Note Receivable (P)

Cash (P)

Cash (P)
Interest Income (P)

Investment in Score Co.

Equity in Subsidiary income

Dividend Declared
Dividend Payable

PURCHASE PRICE & IV

LESS BOOK VALUE:
COMMON STOCK
OTHER
R.E
TOTAL BV EQUITY
DIFFERENCE
GOODWILL
BALANCE

JURNAL ELIMINASI
Goodwill
Different IV & BV

Note Payable (S)

Note Receivable (P)

Interest Income (P)

Interest Expense (S)

Equity in Subsidiary Income (P)

Dividend Declared (S)
Investment in Score Co.
Common Stock (S)
Other (S)
R.E (S)
Different IV & BV
Investment in Score Co.
NCI
= 210.000 - 90.000 = 120.000 X 10% = 12.000
120.000 MERUPAKAN SELISIH KENAIKAN R.E

Income Statement
Sales
Equity in Subsidiary Income
Interest Income
Total Revenue
Cost of Goods Sold
Other Expenses
Total Cost and Expense
Net Income
NCI
Net Income to Retained Earnings

Retained Earnings Statement

Retained Earnings 1/1
Price Company
Score Company
Net Income from above
Dividends Declared
Price Company
Score Company
Retained Earnings 12/31

Balance Sheet
Cash
Accounts Receivable
Note Receivable
Inventory 12/31

Investment in Score

Difference IV & BV
PPE
Land
Goodwill
Total

Accounts Payable
Notes Payable
Common Stock:
Price Company
Score Company
Other Contributed Capital
Price Company
Score Company
Retained Earnings 12/31
Noncontrolling Interest 1/1
Noncontrolling Interest 12/31
Total

Purchase price and implied value

Less: Book value of equity acquired:
Difference between implied and book value
Goodwill
Balance
 450,000
450,000

75,000 Cash (S) 75,000

75,000 Note Payable (S)

7,500 Interest Expense (S) 7,500

7,500 Cash (S)

120,600
120,600

50,000
50,000

TOTAL
90% PARENT 10% NCI
VALUE
450,000 50,000 500,000

180,000 20,000 200,000

144,000 16,000 160,000
81,000 9,000 90,000
405,000 45,000 450,000
45,000 5,000 50,000
(45,000) (5,000) (50,000)
- - -

50,000
50,000

75,000
75,000

7,500
7,500

120,600
45,000
75,600
 200,000
160,000
210,000
50,000
558,000
62,000

Eliminating
Price Company Score Company NCI
Dr. Cr.

1,420,000 500,000
120,600 120,600
7,500 7,500
1,548,100 500,000
822,000 242,000
250,500 124,000 7,500
1,072,500 366,000
475,600 134,000
13,400
475,600 134,000 128,100 7,500 13,400

795,000
210,000 210,000
475,600 134,000 128,100 7,500 13,400

(70,000)
(50,000) 45,000 (5,000)
1,200,600 294,000 338,100 52,500 8,400

109,000 78,000
166,000 94,000 75,000
75,000 -
309,000 158,000
633,600 75,600
558,000
50,000 50,000
940,000 420,000
160,000 70,000
 50,000
2,392,600 820,000 100,000 758,600 -

132,000 46,000
300,000 120,000 75,000

500,000
200,000 200,000

260,000
160,000 160,000
1,200,600 294,000 338,100 52,500 8,400
62,000 62,000
70,400
2,392,600 820,000 873,100 873,100 140,800

Parent Share Noncontrolling Share Entire Value

450,000 50,000 500,000
405,000 45,000 450,000
45,000 5,000 50,000
- 45,000 - 5,000 - 50,000
- - -
75,000

7,500
Consolidated Balance

1,920,000
-
-
1,920,000
1,064,000
367,000
1,431,000
489,000
(13,400)
475,600

795,000
-
475,600

(70,000)

1,200,600

187,000
185,000
75,000
467,000
-

-
1,360,000
230,000
 50,000
2,554,000

178,000
345,000
-
500,000
-
-
260,000
-
1,200,600

70,400
2,554,000
NIKEN LIZA MAYASARI
4112101091 (AM 4C)
P4-8
Calculation of goodwill recognized at acquisition

Purchase price (95%) $ 160,000

Total Value of SID Company $ 168,421
((160.000/95)*100)

Less Book Value

Common Stock $ 120,000
Other Contributed Capital $ 10,000
Retained Earnings $ 23,000
Total Book Value $ 153,000

Goodwill $ 15,421
Non Controlling Interest (5%) $ 771
(15.421 x 5%)
Parker's Share $ 14,650

NCI in SID (168.421 - 160.000) $ 8,421

a. Consolidated Income Statement for year 2017

Adjusted Entries
Particular
Parker SID Debit Credit
Sales $ 260,000 $ 80,000
Dividend Income $ 19,000 $ 19,000
Total Income (A) $ 279,000 $ 80,000
Less:Expense
Cost of Goods Sold $ 130,000 $ 40,000
Other Expenses $ 20,000 $ 14,000
Total Expenses (B) $ 150,000 $ 54,000
Net Income (A-B) $ 129,000 $ 26,000
Net Income for NCI
Net Income $ 129,000 $ 26,000 $ 19,000

Consolidated Retained Earning Statement for year 2017

Adjusted Entries
Particular
Parker SID Debit Credit
Opening Balance on 01.01.2017 $ 40,000 $ 23,000 $ 23,000
Net Income $ 129,000 $ 26,000 $ 19,000
Dividend Declared $ -20,000 $ -20,000 $ 19,000
Closing Balance on 31.12.2017 $ 149,000 $ 29,000 $ 42,000 $ 19,000
 PARKER COMPANY AND CONSOLIDATED SUBSIDIARY
Consolidated Worksheet
For Year Ending December 31,2017
Consolidated Entries
Accounts Parker SID
Debit Credit
Cash $ 62,000 $ 30,000
Receivables $ 32,000 $ 29,000
Inventory $ 30,000 $ 16,000
Investment in SID $ 160,000 $ 160,000
Plant and Equipment $ 105,000 $ 82,000
Land $ 29,000 $ 34,000
Goodwill $ - $ - $ 15,421
Total Assets $ 418,000 $ 191,000

Account Payable $ 19,000 $ 12,000

Other Liabilities $ 10,000 $ 20,000
Common Stock $ 180,000 $ 120,000 $ 120,000
Other Contributed Capital $ 60,000 $ 10,000 $ 10,000
Retained Earnings $ 149,000 $ 29,000 $ 42,000 $ 19,000
NCI on 01.01.17 $ 8,421
NCI on 31.12.17
Total Liabilities and equity $ 418,000 $ 191,000

Notes:
Consolidated Retained Earnings:

Parker Co. Retained Earnings on 01.01.2017 $ 40,000

(+) Net Income $ 129,000
(+) Subsidiary Income (95%) $ 24,700
(26000 x 95%)
(-) Divident from SID eliminated $ 19,000
(-) Divident Declared $ 20,000
Retained Earnings on 31.12.2017 $ 154,700

b. Consolidated Income Statement for year 2018

Adjusted Entries
Particular
Parker SID Debit Credit
Sales $ 240,000 $ 120,000
Dividend Income $ 19,000 $ 19,000
Total Income (A) $ 259,000 $ 120,000
Less:Expense
Cost of Goods Sold $ 155,000 $ 52,000
Other Expenses $ 30,000 $ 18,000
Total Expenses (B) $ 185,000 $ 70,000
Net Income (A-B) $ 74,000 $ 50,000
Net Income for NCI
Net Income $ 74,000 $ 50,000 $ 19,000

Consolidated Retained Earning Statement for year 2018

Adjusted Entries
Particular
Parker SID Debit Credit
Opening Balance on 01.01.2018 $ 149,000 $ 29,000 $ 29,000 $ 5,700
Net Income $ 74,000 $ 50,000 $ 19,000
Dividend Declared $ -20,000 $ -20,000 $ 19,000
Closing Balance on 31.12.2018 $ 203,000 $ 59,000 $ 48,000 $ 24,700

*To recognize Parker's share of the cumulative undistributed income or loss if SID company from the date of
acquisition to the beginning of the current year as follows:
Opening Balance on 01.01.2018 $ 29,000
Opening Balance on 01.01.2017 $ 23,000
Difference $ 6,000
Parke Share (95%) $ 5,700

**For SID Co, Divident has been declared by $20.000 in which 95% of this divident would be eliminated by transfe
parent account and rest will be distributed to NCIL (5%)

***NCI in Net Income

SID Company Net Income $ 50,000
NCI% 5%
NCI Share in Net Income $ 2,500
(50.000x5%)

PARKER COMPANY AND CONSOLIDATED SUBSIDIARY

Consolidated Worksheet
For Year Ending December 31,2018
Consolidated Entries
Accounts Parker SID
Debit Credit
Cash $ 67,000 $ 16,000
Receivables $ 56,000 $ 32,000
Inventory $ 38,000 $ 48,500
Investment in SID $ 160,000 $ 5,700 $ 165,700
Plant and Equipment $ 124,000 $ 80,000
Land $ 29,000 $ 34,000
Goodwill $ - $ - $ 15,421
Total Assets $ 474,000 $ 210,500

Account Payable $ 16,000 $ 7,000

Other Liabilities $ 15,000 $ 14,500
Common Stock $ 180,000 $ 120,000 $ 120,000
Dividend Income $ 60,000 $ 10,000 $ 10,000
Retained Earnings $ - $ - $ - $ -
Retained Earnings (aboove)** $ 203,000 $ 59,000 $ 48,000 $ 24,700
NCI on 01.01.18 $ 8,721
NCI on 31.12.18
Total Liabilities and equity $ 474,000 $ 210,500

**Notes
Consolidated Retained Earnings:

Parker Co. Retained Earnings on 01.01.2018 $ 154,700

(+) Net Income $ 74,000
(+) Subsidiary Income (95%) $ 47,500
(50000 x 95%)
(-) Divident from SID eliminated $ 19,000
(-) Divident Declared $ 20,000
Retained Earnings on 31.12.2018 $ 237,200
tries
Consolidated
NCI
Balance
$ 340,000
$ -
$ 340,000

$ 170,000
$ 34,000
$ 204,000
$ 136,000
$ 1,300 $ -1,300
$ 1,300 $ 134,700

tries
Consolidated
NCI
Balance
$ 40,000
$ 1,300
$ -1,000 $ -20,000
$ 300 $ 20,000
IDIARY

NCI Totals

$ 92,000
$ 61,000
$ 46,000

$ 187,000
$ 63,000
$ 15,421
$ 464,421

$ 31,000
$ 30,000
$ 180,000
$ 60,000
$ 300 $ 154,700
$ 8,421
$ 8,721 $ 8,721
$ 464,421

tries
Consolidated
NCI
Balance
$ 360,000
$ -
$ 360,000

$ 207,000
$ 48,000
$ 255,000
$ 105,000
$ 2,500 $ -2,500
 $ 2,500 $ 102,500

tries
Consolidated
NCI
Balance
$ 154,700
$ 2,500 $ 102,500
$ -1,000 $ -20,000
$ 1,500 $ 237,200

company from the date of

uld be eliminated by transferring into

IDIARY

NCI Totals

$ 83,000
$ 88,000
$ 86,500
$ -
$ 204,000
$ 63,000
$ 15,421
$ 539,921

$ 23,000
$ 29,500
$ 180,000
$ 60,000
$ - $ -
$ 1,500 $ 237,200
$ 8,721
$ 10,221 $ 10,221
$ 539,921