TUGAS PRAKTIKUM AKUNTANSI KEUANGAN LANJUTAN FATA 2016

LAB 8
INTERCOMPANY PROFIT TRANSACTION – BONDS

The separate trial balance for Pir Inc and Sul Inc, its 90% owned subsidiary, for the year
ended 2019 is as follows: (in thousand dollars)

Pir Sul
Combined Income and Retained Earnings Statement for the
year ended December 31, 2019
Sales 32,130 19,000
Income from Sul 6,870 -
Gain on land - 500
Gain on equipment 200 -
Interest income - 200
Interest expense -1,190 -
Cost of sales -10,000 -8,000
Other expenses -210 -1,500
Net Income 27,800 10,200
Add : Beginning retained earnings 17,900 10,450
Less : Dividends -700 -650
Ending Retained Earnings 45,000 20,000
Statement of Financial Position at December 31, 2019
Cash 7,310 4,000
Account Receivable 3,000 2,500
Interest Receivable - 2,150
Inventories 6,900 3,900
Land 10,000 14,000
Equipment-net 9,000 12,000
Building-net 19,000 19,100
Investment in Pir’s bonds - 2,800
Investment in Sul 42,690 -
Total Assets 97,900 60,450
Account Payable 1,900 900

ANA – HESTY – SANDRA – SHINDI FATA 2016

TUGAS PRAKTIKUM AKUNTANSI KEUANGAN LANJUTAN FATA 2016

Interest Payable 900 -

Other Liabilities 37,100 9,550
25% Bonds Payable 4,000 -
Common Stock 9,000 30,000
Retained Earnings 45,000 20,000
Total Liabilities and Equities 97,900 60,450

Additional Information:

1. Pir Inc acquired Sul Inc when the book value of its net identifiable assets equaled its
fair value.
2. Intercompany merchandise sale during 2019 by Pir to Sul was $1,900,000 while the
unrealized profit of $900,000 remained in the ending inventory.
3. Pir Inc purchased land from Sul Inc on October 2019 with book value of $9,000,000
for $9,500,000. Pir Inc holds the land until 2021.
4. Sul Inc purchased equipment from Pir Inc for $900,000 on 1 January 2019. The gain
from selling this equipment was $200,000. Straight-line depreciation with 5-year useful
life is appropriate.
5. On 3 July 2019, Sul Inc purchased half of Pir’s outstanding bonds that were originally
issued at par on 1 January 2019 for $2,900,000. The bonds will mature in 5 years and
pays interest every July 1.

Instruction:

Prepare consolidation workpaper for Pir Inc and subsidiary for the year ended December 31,
2019.

ANA – HESTY – SANDRA – SHINDI FATA 2016