Asistensi AKL1

CH. 2 Consolidation of Wholly Owned Subsidiaries with No Differential

Soal 1 - Consolidated Worksheet at End of First Year (100% Ownership, No
Differential, Equity Method)
Parent Company acquired 100 percent of Sub Company outstanding common
stock for $245.000 on January 1, 20X5, when the book value of Subs net assets
was equal to $245.000. Parent uses the equity method to account for
investments. Trial balance data for Parent and Sub as of December 31, 20X5 are
as follows:
Parent Company
Sub Company
Balance Sheet Item
Debit
Credit
Debit
Credit
Cash
65.000
80.000
Account Receivable
130.000
80.000
Building & Equipment
550.000
175.000
Investment in Sub
265.000
Depreciation Expense
15.000
5.000
Other Expense
60.000
15.000
Dividends Declared
30.000
10.000
Accum. Depr.
350.000
25.000
Accounts Payable
60.000
45.000
Common Stock
400.000
175.000
Retained Earnings
150.000
70.000
Sales
125.000
50.000
Income from Sub
30.000
1.115.000 1.115.000 365.000 365.000
Required:
a. Prepare the journal entries on Parents books for the acquisition of Sub
on January 1, 20X5, as well as any normal equity method entry(ies)
related to investment in Sub Company during 20X5.

b.

Prepare a consolidation worksheet for 20X5 in good form.

Soal 2- Consolidated Worksheet at End of First Year (100% Ownership, No

Differential, Cost Method)
PT Lumajang purchased 100% of PT Garut's voting stock for Rp 170.000.000 on
January 1, 20X6, at underlying book value. PT Lumajang uses the cost method in
accounting for its ownership of PT Garut. On December 31, 20X4, the trial
balance of the two companies are as follows:
Item
Current Assets
Depreciable Assets
Investment in PT Garut Stock
Depreciation Expense
Other Expense
Dividend Declared
Acc. Depreciation
Current Liabilities
Long-term Debt
Common Stock
Retained Earning
Sales
Dividend Income

PT Lumajang
Debit
Credit
238,000,000
500,000,000
170,000,000
25,000,000
150,000,000
50,000,000
200,000,000
70,000,000
100,000,000
200,000,000
318,000,000
230,000,000
15,000,000
1,133,000,000
1,133,000,000

PT Garut
Debit
Credit
160,000,000
300,000,000
15,000,000
90,000,000
15,000,000
90,000,000
50,000,000
120,000,000
100,000,000
70,000,000
150,000,000
580,000,000

580,000,000

Required:
a. Prepare any cost method journal entry(ies) related to the investment in
Sub Company during 20X6.
b. Prepare a consolidation worksheet for 20X6 in good form.

Consolidation Worksheet

Consolidation Worksheet
Parent Co.
Income Statement
Sales
Depreciation Expense
Other Expense
Income from Sub
Net Income
Statement of Retained Earnings
Beginning Balance
Net Income
Less: Dividends Declared
Ending Balance
Balance Sheet
Cash
Account Receivable
Building & Equipment
Accum. Depr.
Investment in Sub
Total Assets
Accounts Payable
Common Stock
Retained Earnings
Total Liab & Eq.

Sub Co.

Dr.

Cr.

Consolidated

PT Lumajang
Income Statement
Sales
Depreciation Expense
Other Expense
Dividend Income
Net Income
Statement of Retained Earnings
Beginning Balance
Net Income
Less: Dividends Declared
Ending Balance
Balance Sheet
Current Assets
Depeciable Assets
Acc. Depreciation
Investment in PT Garut
Total Assets
Current Liablities
Long-term Debt
Common Stock
Retained Earnings
Total Liab & Eq.

PT Garut

Dr.

Cr.

Consolidated