Tugas Mata Kuliah Prof Dr Apollo (Daito): Akuntansi Keuangan Lanjutan II

b.  Example Consolidated Workpapers, Two Consecutive Years, Cost Method

On January i, 2010, Parker Company purchased 95% of the outstanding common stock of Sid Company for $160,000. At the time, Sid Stockholders equity consisted of common stock, $120,000; other contributed capital, $10,000; and retained earning, $23,000.

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 Required:

Prepare a consolidated statements workpaper on Dec 31, 2010.

Solution:

-> Year of Acquisition

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*$26,000 x 5% = $1,300

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**$20,000 x 5% = $1,000

-> After year of Acquisition

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2. Example 

 Peg Corporation own 90% uf the voting stock of Sup Corporation and 25% of the voting stock of Ell Corporation. 90% interest in Sup was acquired for $18,000 cash on Januari 1, 2011. When Sup's stockholders equity was $20,000 ($18,000 capital stock and $2,000 retained earnings). Peg's 25% interest in Ell was purchased for $7,000 cash on July 1, 2011.