TUGAS KELOMPOK ADVANCE

DISUSUN OLEH
MUHAMMAD ALI (A31112281)
AINUL MUHAIDIR (A31112277)
MUH GLADI REKSA (A31112294)

FAKULTAS EKONOMI DAN BISNIS

UNIVERSITAS HASANUDDIN
MAKASSAR 2014
P1-1

Preliminary computations
Fair Value: Cost of investment in Sain at January 2
(30,000 shares $20)
Nilai buku
Kelebihan fair value Diatas nilai buku

$600,000
(440,000)
$160,000

Kelebihan dialokasikan ke:

Current assets
Sisa hibah
Kelebihan fair value diatas nilai buku

$ 40,000
120,000
$160,000

Note: $25,000 direct costs of combination are expensed. kelebihan

fair value dari bangunan Pines tidak dipertimbangkan.

Pine Corporation
Balance Sheet at January 2, 2009
Assets
Current assets
($130,000 + $60,000 + $40,000 excess - $40,000 direct costs)

$ 190,000

Land ($50,000 + $100,000)

150,000

Buildings net ($300,000 + $100,000)

400,000

Equipment net ($220,000 + $240,000)

460,000

Goodwill
Total assets

120,000
$1,320,000

Liabilities and Stockholders Equity

Current liabilities ($50,000 + $60,000)

$ 110,000

Common stock, $10 par ($500,000 + $300,000)

800,000

Additional paid-in capital

[$50,000 + ($10 30,000 shares) $15,000 costs of issuing
and registering securities]

335,000

Retained earnings (subtract $25,000 expensed direct cost)

Total liabilities and stockholders equity

75,000
$1,320,000

P1-2
Preliminary computations
Fair Value: Cost of acquiring Seabird
Fair value of assets acquired and liabilities assumed
Goodwill from acquisition of Seabird

$825,000
670,000
$155,000

Pelican Corporation
Balance Sheet
at January 2, 2009
Assets
Current assets
Cash [$150,000 + $30,000 - $140,000 expenses paid]

$ 40,000

Accounts receivable net [$230,000 + $40,000 fair value]

270,000

Inventories [$520,000 + $120,000 fair value]

640,000

Plant assets
Land [$400,000 + $150,000 fair value]

550,000

Buildings net [$1,000,000 + $300,000 fair value]

1,300,000

Equipment net [$500,000 + $250,000 fair value]

750,000

Goodwill
Total assets

155,000
$3,705,000

Liabilities and Stockholders Equity

Liabilities
Accounts payable [$300,000 + $40,000]
Note payable [$600,000 + $180,000 fair value]

$ 340,000
780,000

Stockholders equity
Capital stock, $10 par [$800,000 + (33,000 shares $10)]

1,130,000

Other paid-in capital

[$600,000 - $40,000 + ($825,000 - $330,000)]

1,055,000

Retained earnings (subtract $100,000 expensed direct costs)

Total liabilities and stockholders equity

400,000
$3,705,000

P1-3
Persis issues 25,000 shares of stock for Sinecos outstanding shares
1a

Investment in Sineco
750,000
Capital stock, $10 par
250,000
Other paid-in capital
500,000
To record issuance of 25,000, $10 par shares with a market price of $30 per share in a
business combination with Sineco.
Investment expenses
30,000
Other paid-in capital
20,000
Cash
50,000
To record costs of combination in a business combination with Sineco.
Cash
10,000
Inventories
60,000
Other current assets
100,000
Land
100,000
Plant and equipment net
350,000
Goodwill
180,000
Liabilities
50,000
Investment in Sineco
750,000
To record allocation of investment cost to identifiable assets and liabilities according to
their fair values and the remainder to goodwill. Goodwill is computed: $750,000 cost $570,000 fair value of net assets acquired.

1b

Persis Corporation
Balance Sheet
January 2, 2009
(after business combination)
Assets
Cash [$70,000 + $10,000]
Inventories [$50,000 + $60,000]
Other current assets [$100,000 + $100,000]
Land [$80,000 + $100,000]
Plant and equipment net [$650,000 + $350,000]
Goodwill
Total assets
Liabilities and Stockholders Equity
Liabilities [$200,000 + $50,000]
Capital stock, $10 par [$500,000 + $250,000]
Other paid-in capital [$200,000 + $500,000 - $20,000]
Retained earnings (subtract $30,000 direct costs)
Total liabilities and stockholders equity

$ 80,000
110,000
200,000
180,000
1,000,000
160,000
$1,750,000
$ 250,000
750,000
680,000
70,000
$1,750,000

P1-3 (continued)
Persis issues 15,000 shares of stock for Sinecos outstanding shares
2a

450,000
Investment in Sineco (15,000 shares $30)
Capital stock, $10 par
150,000
Other paid-in capital
300,000
To record issuance of 15,000, $10 par common shares with a market price of $30 per
share.
Investment expense
30,000
Other paid-in capital
20,000
Cash
50,000
To record costs of combination in the acquisition of Sineco.
Cash
10,000
Inventories
60,000
Other current assets
100,000
Land
100,000
Plant and equipment net
350,000
Liabilities
50,000
Investment in Sineco
570,000
To record Sinecos net assets at fair values.
Investment in Sineco
120,000
Gain on bargain purchase
120,000
To record gain on bargain purchase and adjust Investment in
Sineco to reflect total fair value.
Fair value of net assets acquired
Investment cost (Fair value of consideration)
Gain on Bargain Purchase

2b

$570,000
450,000
$120,000

Persis Corporation
Balance Sheet
January 2, 2009
(after business combination)
Assets
Cash [$70,000 + $10,000]
Inventories [$50,000 + $60,000]
Other current assets [$100,000 + $100,000]
Land [$80,000 + $100,000]
Plant and equipment net [$650,000 + $350,000]
Total assets
Liabilities and stockholders equity
Liabilities [$200,000 + $50,000]
Capital stock, $10 par [$500,000 + $150,000]
Other paid-in capital [$200,000 + $300,000 - $20,000]
Retained earnings (subtract $30,000 direct costs
and add $120,000 Gain from bargain purchase)
Total liabilities and stockholders equity

$ 80,000
110,000
200,000
180,000
1,000,000
$1,570,000
$ 250,000
650,000
480,000
190,000
$1,570,000

P1-4
1

Schedule to allocate investment cost to assets and liabilities

Investment cost (fair value), January 1
Fair value acquired from Sen ($360,000 100%)
Excess fair value over cost (bargain purchase gain)

$300,000
360,000
$ 60,000

Allocation:
Allocation
$ 10,000
20,000
30,000
100,000
150,000
150,000
(30,000)
(70,000)
(60,000)
$ 300,000

Cash
Receivables net
Inventories
Land
Buildings net
Equipment net
Accounts payable
Other liabilities
Gain on bargain purchase
Totals

Phule Corporation
Balance Sheet
at January 1, 2009
(after combination)
Liabilities

Assets
Cash
Receivables net
Inventories
Land
Buildings net
Equipment net

Total assets

$ 25,000
60,000
150,000
145,000
350,000
330,000

$1,060,000

Accounts payable
Note payable (5 years)
Other liabilities
Liabilities

$ 120,000
200,000
170,000
490,000

Stockholders Equity
Capital stock, $10 par
Other paid-in capital
Retained earnings*
Stockholders equity
Total equities

* Retained earnings reflects the $60,000 gain on the bargain purchase.

300,000
100,000
170,000
510,000
$1,060,000

P1-5
1

Journal entries to record the acquisition of Dawn Corporation

Investment in Dawn
2,500,000
Capital stock, $10 par
1,000,000
Other paid-in capital
1,000,000
Cash
500,000
To record acquisition of Dawn for 100,000 shares of common stock and $500,000 cash.
Investment expense
100,000
Other paid-in capital
50,000
Cash
150,000
To record payment of costs to register and issue the shares of stock ($50,000) and other
costs of combination ($100,000).
Cash
240,000
Accounts receivable
360,000
Notes receivable
300,000
Inventories
500,000
Other current assets
200,000
Land
200,000
Buildings
1,200,000
Equipment
600,000
Accounts payable
300,000
Mortgage payable, 10%
600,000
Investment in Dawn
2,700,000
To record the net assets of Dawn at fair value.
Investment in Dawn
200,000
Gain on bargain purchase
200,000
To adjust Investment account to total fair value and recognize
the gain from the bargain purchase.
Gain on Bargain Purchase Calculation
Acquisition price
Fair value of net assets acquired
Gain on bargain purchase

$2,500,000
2,700,000
$ 200,000

P1-5 (continued)
2

Celistia Corporation
Balance Sheet
at January 2, 2009
(after business combination)
Assets
Current Assets
Cash
Accounts receivable net
Notes receivable net
Inventories
Other current assets
Plant Assets
Land
Buildings net
Equipment net
Total assets

$ 2,590,000
1,660,000
1,800,000
3,000,000
900,000
$ 2,200,000
10,200,000
10,600,000

$ 9,950,000

23,000,000
$32,950,000

Liabilities and Stockholders Equity

Liabilities
Accounts payable
Mortgage payable, 10%
Stockholders Equity
Capital stock, $10 par
Other paid-in capital
Retained earnings*
Total liabilities and stockholders equity

$ 1,300,000
5,600,000
$11,000,000
8,950,000
6,000,000

* Subtract $100,000 direct combination costs and add $200,000 gain on bargain
purchase.

$ 6,900,000

26,050,000
$32,950,000

RESEARCH CASE
1. Journal entry to record the acquisition (in millions of $)
Investment in Target
50,000
Common stock, $0.10 par
100
Additional paid-in capital
49,900
To record acquisition of Target for 1 billion shares of common stock having a fair value of
$50 per share.
Cash
240,000
Accounts receivable
360,000
Notes receivable
300,000
Inventories
500,000
Other current assets
200,000
Land
190,000
Buildings
1,140,000
Equipment
570,000
Accounts payable
300,000
Mortgage payable, 10%
600,000
Investment in Target
2,600,000
Assign the excess of fair value over book value of assets and liabilities as shown in the
following allocation schedule:
Acquisition price
$50,000
Excess fair value of assets acquired
Inventory (10%)
625
Land (20%)
987
Buildings and improvements (20%)
3,222
Fixtures and equipment (20%)
711
Computer hardware and software (20%)
438
21,859
Goodwill
$ 28,141

2. Consolidated Balance Sheet at January 31, 2007

(millions, except footnotes)

WALMART

TARGET

DR

CR

CONSOLIDATED

Assets
Cash and cash equivalents

7,373

813

Accounts receivable, net

2,840

6,194

33,685

6,254

Inventory
Other current assets
Total current assets

8,186
9,034
625

40,564

2,690

1,445

4,135

46,588

14,706

61,294

Property and equipment

Land

18,612

4,934

987

24,533

Buildings and improvements

64,052

16,110

3,222

83,384

Fixtures and equipment

25,168

3,553

711

29,432

Computer hardware and software

2,188

438

2,626

Construction-in-progress

1,596

1,596

Transportation equipment

1,966

Accumulated depreciation

(24,408)

(6,950)

(31,358)

85,390

21,431

106,821

Property and equipment, net

Property Under Capital Lease
Less: Accumulated amortization
Property Under Lease - net

5,392

5,392

(2,342)

(2,342)

3,050

Goodwill

13,759

Investment in Target

50,000

Other non-current assets

Total assets

1,966

3,050
28,141

41,900
50,000

2,406

1,212

3,618

201,193

37,349

238,542

Liabilities and shareholders' investment

Commercial Paper

2,570

Accounts payable

28,090

6,575

34,665

Accrued and other current liabilities

14,675

2,758

17,433

706

422

1,128

5,428

1,362

6,790

Income taxes payable

Current portion of long-term debt and notes payable
Current obligations capital leases
Total current liabilities
Long-term debt

2,570

285

285

51,754

11,117

62,871

27,222

8,675

35,897

Long term capital leases

3,513

Deferred income taxes

4,971

Noncontrolling Interest

2,160

Other non-current liabilities

3,513
577

5,548
2,160

1,347

1,347

Shareholders' investment
Common stock

513

72

72

513

Additional paid-in-capital

52,734

2,387

2,387

52,734

Retained earnings

55,818

13,417

13,417

55,818

2,508

(243)

2,265

111,573

15,633

127,206

201,193

37,349

Accumulated other comprehensive income (loss)

Total shareholders' investment
Total liabilities and shareholders' investment

50,000

50,000

238,542