KUIS 1

Akuntansi Keuangan Lanjutan

Semester Antara 2019/2020
1) On January 2, 2014, Santa Corporation paid $600,000 to acquire 20% interest in Panda Inc. At that time,
the book value of Panda's stockholders' equity included $700,000 of common stock and $1,800,000 of
retained earnings. All the excess purchase cost over the book value acquired was attributable to a patent
with an estimated life of 10 years. Panda paid $6,250 of dividends each quarter for the next two years, and
reported net income of $180,000 for 2013 and $220,000 for 2014. Santa recorded all activities related to their
investment using the equity method.

Required:
1. Calculate Santa's income from Panda for 2013.
2. Calculate Santa's income from Panda for 2014.
3. Determine the balance of Santa's Investment in Panda account on December 31, 2014.

2) On January 1, 2014, Parry Incorporated paid $72,000 cash for 80% of Samuel Company's common stock.
At that time Samuel had $40,000 capital stock and $30,000 retained earnings. The book values of Samuel's
assets and liabilities were equal to fair values, and any excess amount is allocated to goodwill. Samuel
reported net income of $18,000 during 2014 and declared $5,000 of dividends on December 31, 2014. At the
time the dividends were declared, Parry recorded a receivable for the amount they expected to receive the
following month. A summary of the balance sheets of Parry and Samuel are shown below.
Required:
Complete the consolidated balance sheet working papers for Parry Corporation and Subsidiary at December
31, 2014.

3) On January 2, 2013, Pilates Inc. paid $900,000 for all of the outstanding common stock of Spinning
Company, and dissolved Spinning Company. The carrying values for Spinning Company's assets and
liabilities are recorded below.

Cash $200,000
Accounts Receivable 220,000
Copyrights (purchased) 400,000
Goodwill 120,000
Liabilities (180,000)
Net assets $760,000

On January 2, 2013, Spinning anticipated collecting $185,000 of the recorded Accounts Receivable. Pilates
entered into the acquisition because Spinning had Copyrights that Pilates wished to own, and also
unrecorded patents with a fair value of $100,000.

Required:
Calculate the amount of goodwill that will be reported on Pilate's balance sheet as of the date of acquisition.

4) Puddle Corporation acquired all the voting stock of Soggi Company for $500,000 on January 1, 2014 when
Soggi had Capital Stock of $300,000 and Retained Earnings of $150,000. The book value of Soggi's assets
and liabilities were equal to the fair value except for the plant assets. The entire cost-book value differential
is allocated to plant assets and is fully depreciated on a straight-line basis over a 10-year period.

During 2014, Puddle borrowed $25,000 on a short-term non-interest-bearing note from Soggi, and on
December 31, 2014, Puddle mailed a check to Soggi to settle the note. Soggi deposited the check on January
5, 2015, but receipt of payment of the note was not reflected in Soggi's December 31, 2014 balance sheet.

Required:
Complete the consolidation working papers for the year ended December 31, 2014.