Panda acquired of sandi Jan 2019 80% $720,000 whe book value of sandi Common Stock $500,000 and

$400,000. Panda jan 2019 has land at cost $150,000 sold to sandi with price 120,000, if net income 2019
300,000 and dividend 100,000. 2019 terdapat sold inventory to panda $150,000 dan 2020 sold $170,000.
unrealized profit 2019 = 25,000 dan 2020 = 30,000 prepare journal entry in 2019 and 2020. Net income 2020
is 340,000

Investment in sandi $ 240,000

Income from sandi $ 240,000

Investment in sandi $ 30,000

Income from sandi $ 30,000

Tahun : 2019
Land $ 30,000 Calculate income :
Loss on sale of land $ 30,000 Net incom 2019 (80%)
deduct : Unrealized profit
NCI Shares $ 55,000 add : loss on land
Dividend $ 20,000
NCI $ 35,000
NCI Shares (20%)
Income from sandi $ 250,000 deduct : Unrealized profit
Dividend $ 80,000
Investment in sandi $ 170,000

Common Stock $ 500,000

Retained Earnings $ 400,000
Investment in Sandi $ 720,000
NCI $ 180,000

COGS $ 25,000
Inventory $ 25,000

Sales $ 150,000
COGS $ 150,000

Tahun : 2020 Retained beginning 2019

Add : net income
Sales $ 170,000 less : dividend
COGS $ 170,000 Retained 2020

Land $ 30,000
Investment in sandi $ 30,000 R/E
NET INCOME
Investment in sandi $ 20,000 RP
NCI $ 5,000 UP
COGS $ 25,000 DIVIDEND

COGS $ 30,000
Inventory $ 30,000

Common Stock $ 500,000

Retained Earnings $ 600,000
Investment in sandi $ 880,000
NCI $ 220,000

Income from sandi $ 316,000

Dividen $ 80,000
Investmment in sun $ 236,000

NCI Shares $ 79,000

Dividend $ 20,000
NCI $ 59,000
Calculate income :
Net incom 2019 (80%) $ 240,000
deduct : Unrealized profit '19 $ -20,000
add : loss on land $ 30,000
$ 250,000

NCI Shares (20%) $ 60,000

deduct : Unrealized profit '19 $ -5,000
$ 55,000

Retained beginning 2019 $ 400,000

Add : net income $ 300,000
less : dividend $ -100,000
Retained 2020 $ 600,000

$ 720,000
NET INCOME $ 250,000
$ 25,000
 $ -30,000
DIVIDEND $ -80,000
$ 885,000
Calculate Cost of investment beginnig

Investment in Rashed QSC 31 Dec, 2014 include dividend 2,880,000

Dividend from Rashed (100.000 X 90%) 90,000
Initial investment 2,970,000

Implaid Value 3,300,000

BV of net Assets 1,800,000
Excess 1,500,000
Allocated to goodwill 1,500,000
NCI 10% 330,000
Calculate income from Rashed

Sales 2,300,000
COGS - 1,700,000
Other Expanses - 200,000
Rashed Net income 400,000
Add : Unrealized profit - 100,000
Income rashed 300,000

Income from rashed (90%) 270,000

Less : Unrealized gain on sale of land - 200,000
Income from rashed (90%) 70,000

NCI Shares (10%) 30,000

Calculate Ending Investment

Nase 90%
Initial cost of investment 2,970,000
Add : Income From Rashed 270,000
Less : Unrealized gain on sale of land - 200,000
Less : Dividend - 90,000
Balance investment 2,950,000

NCI (10%)
Beginning NCI 330,000
Add: NCI Shares 30,000
Less : Dividend - 10,000
Ending NCI 350,000
Sales 700,000
COGS 700,000 Sales
[Buat eliminasi penjualan inventori (downstream)] Income From Rashed
COGS
COGS 100,000 Gain on Sale of land
Invenotory 100,000 Other Expanses
[Buat eliminasi unrealized profit inventori] NCI Shares
Net Income
Gain on sale of land 200,000
Land 200,000 R/E Beginning
[Buat eliminasi penjualan land (downstream)] Net income
Dividend
Account Payable 100,000
Account Receivable 100,000 R/E Ending

Income From Rashed 70,000 Cash

Investment in Rashed 20,000 Account Receivable
Dividend 90,000 Land
Inventory
NCI Shares 30,000 Equipment
Dividend 10,000 Investment in rashed
NCI 20,000 Goodwill
TOTAL
Retained Earnings 800,000
Common Stock 1,000,000 Account Payable
Goodwill 1,500,000 Common Stock
Investment In Rashed 2,970,000 Retained Earnings
NCI 330,000 NCI Beginning
NCI Ending
TOTAL
 Nase Rashed Debit Credit
3,100,000 2,300,000 700,000
om Rashed 70,000 70,000
- 2,400,000 - 1,700,000 - 100,000 700,000
200,000 - 200,000
- 200,000 - 200,000
- 30,000
770,000 400,000

2,980,000 800,000 800,000

770,000 400,000
- 300,000 - 100,000 90,000
10,000
3,450,000 1,100,000

200,000 100,000
300,000 200,000 - 100,000
1,200,000 700,000 200,000
700,000 800,000 100,000
400,000 400,000
t in rashed 2,950,000 20,000 2,970,000
1,500,000
5,750,000 2,200,000

100,000 100,000 100,000

2,200,000 1,000,000 1,000,000
3,450,000 1,100,000
20,000
330,000
5,750,000 2,200,000 -
 Consolidated
4,700,000
-
- 3,500,000
-
- 400,000
- 30,000
770,000

2,980,000
770,000

- 300,000
3,450,000

300,000
400,000
1,700,000
1,400,000
800,000
-
1,500,000
6,100,000

100,000
2,200,000
3,450,000

350,000
6,100,000
[P6-3] Workpaper (downstream sale and intercompany receivable/payable) Arnab Corporation acquired an 80
percent interest in Bitt Corporation on January 1, 2016, for $3,000,000 in cash. Bitt’s common stock and retained
earnings on this date were at $2,500,000 and $500,000, respectively. The book value of Bitt’s net assets equals
fair value. The financial statements of Arnab and Bitt at and for the year ended December 31, 2017, are
summarized as follows (in thousands):

During 2016, Arnab sold land to Bitt with a book value of $100,000 for $150,000. On January 1, 2017,
Arnab sold equipment with a five-year remaining useful life and a book value of $50,000 to Bitt for
$60,000 on January 1, 2017. Arnab also sold merchandise to Bitt for $45,000 during 2016 and for
$50,000 during 2017. Bitt’s inventories at December 31, 2016, and December 31, 2017, included
unrealized profits of $5,000 and $10,000, respectively. Arnab’s accounts receivable on December 31,
2017, included $5,000 from Bitt, and all of Arnab’s dividends receivable on December 31, 2017, are
from Bitt.
REQUIRED: Prepare a consolidation workpaper for Arnab Corporation and Subsidiary for the year
ended December 31, 2017.
Calculate : Journal :
Cost of investment 80% 3,000,000 Investment in Bitt
Land
Implaid Value 3,750,000 [Penjualan land (downstream)]
BV of Net Asets 3,000,000
Excess 750,000 Gain on sale of equipment
Allocated to goodwill 750,000 Equipment
[mencatat penjualan equipment (do
NCI 20% 750,000
Accumulated Depreciation
Net income bitt 80,000 Operating Expenses
[piecemeal recognition (10,000x5ye
Net income from bitt 64,000
add : Realized 2016 5,000 Sales
add : piecemeal recognition 2,000 COGS
less : unrealized profit - 10,000 [Penjualan inventory (downstream)
Less : gain on sale og equipment - 10,000
Income from Bitt 51,000 Investment in Bitt
COGS
NCI Shares 20% 16,000 [realized dari unrealized 2016]

Dividend 20,000 COGS

Dividend for Arnab (80%) 16,000 Inventory
Dividend NCI (20%) 4,000 [Unrealized profit inventory 2017]

Income from Bitt

Dividend
Investment in Bitt

NCI Shares
Dividend
NCI

Common stock
Retained earnings
Goodwill
Investment in Bitt
NCI

Account Payable
Account Receivable

Dividend Payable
Dividends Receivable
 50,000
50,000 Sales
land (downstream)] Income From Bitt
Gain on Equipment
le of equipment 10,000 COGS
10,000
penjualan equipment (downstream)] Operating Expenses
NCI Shares
ed Depreciation 2,000 Net Income
ting Expenses 2,000
l recognition (10,000x5year)] R/E, Beginning
Add : income
50,000 Less : dividend
50,000
inventory (downstream) 2017] R/E, Ending

5,000 Cash
5,000 Account Receivable
ari unrealized 2016] Dividend Receivable
Inventories
10,000 Buildings
10,000 Land
d profit inventory 2017] Equipment
Investment in Bitt
51,000
16,000 Goodwill
ment in Bitt 35,000 Total Assets

16,000 Account Payable

4,000 Dividends Payable
12,000 Other Liabilities
Common Stock, $10 par
2,500,000 Retained Earnings
726,250 NCI, Beginning
750,000 NCI, Ending
3,181,000 Total Liabilities
795,250

5,000
nt Receivable 5,000

16,000
ds Receivable 16,000
 Arnab Bitt Debit Credit
3,000,000 500,000 50,000
51,000 51,000
10,000 10,000
- 1,200,000 - 300,000 - 10,000 50,000
5,000
- 400,000 - 120,000 2,000
- 16,000
1,461,000 80,000

2,300,000 726,250 726,250

1,461,000 80,000
- 200,000 - 20,000 16,000
4,000
3,561,000 786,250

100,000 25,000
520,000 30,000 - 5,000
16,000 - 16,000
1,250,000 1,076,250 - 10,000
1,250,000 800,000
2,500,000 750,000 - 50,000
3,114,000 705,000 2,000 - 10,000
3,161,000 5,000 - 35,000
50,000 - 3,181,000
750,000
11,911,000 3,386,250

200,000 30,000 - 5,000

- 20,000 - 16,000
150,000 50,000
Stock, $10 par 8,000,000 2,500,000 - 2,500,000
3,561,000 786,250
795,250
12,000
11,911,000 3,386,250
Consolidated
3,450,000
-
-
- 1,455,000

- 518,000
- 16,000
1,461,000

2,300,000
1,461,000
- 200,000

3,561,000

125,000
545,000
-
2,316,250
2,050,000
3,200,000
3,811,000
-

750,000
12,797,250

225,000
4,000
200,000
8,000,000
3,561,000

807,250
12,797,250