Name : Turambi, Rodrigo Jordi

Seating : B2-5
Problem 1
On March. 1, 2016 Pat Corp. bought 2500 shares of Saw stocks at $42. At the end of 2016 Saw
reported $180000 income and paid dividend $8000. On Jan, 3 2017 Pat bought 15% shares
of Saw common stock at $ 45. Saw reported 2017 income of $175000 and paid dividend $3/share.
four thousands of Saw's shares were bought by Pat on May. 3, 2018 at $47.5/share.
Saw stocks were initially sold on Jan. 5, 2015 at fair value $40 collecting fund of $400000
Data entry
10 25% 2,500 42 180,000 80000
12 15% 1,500 45 175,000 3
10 40% 4,000 47.5
80%
Collecting fund 400,000
MV 40
Show your calculations :
Investment in Saw Co Stocks on Dec. 31, 2016
130,000
Income & dividend from Saw on Dec.31,2016 45000 No. Dividend since investment>25%
Investment in Saw's Stocks on Jan 3, 2017 197,500
Investment in Saw's Stocks on Dec. 31, 2017 248,208
% Controlling interest on May. 3, 2018 80% 20%
Investment in Saw Stocks on Jan. 3, 2018 438,208

Problem 2
complete the consolidated Balance sheet from problem 1
Pat BV Saw MV Adjustment
Cash 300,000 250,000 250,000
Account Receivable 50,000 219,000 219,000
Inventory 100,000 76,500 76,500
Other Current Assets 9,000 209,000 209,000
Investment in Saw 438,208 438,208
Land 450,000 61,000 61,000
Buildings (net) 539,000 200,000 200,000
Equipment (net) 51,000 127,500 127,500
goodwill
total assets 1,937,208 1,143,000
Account Payable 25,000 250,000 250,000
Loan Payable 217,500 300,000 300,000
Capital Stock par $10 1,000,000
Paid in Capital 250,000
Retained Earnings 444,708 45,240
minority interest 109,552
total liabilities and eqity 1,937,208 1,143,000 1,143,000
net assets 593,000
investment 438,208
gain (45,240)
implied value 547,760

Problem 3
Calculte the investment based on following the data: SS reported Paid in capital 20000,
Common stock 100000, par 10. PP bought SS on piecemeal acquisition as follow
Capital stock 100,000 outstanding 10,000
Par Value 10
Paid in capital 200,000

stock acquired MV of SS stock SS Income SS dividend Investment in SS stock

on Jan 3,2015 12% 13 15,600
oct 31,2015 300 shares 15 20,100
dec 31,2015 200000 50000 20,100
apr.1 , 2016 2200 shares 16 47,800
dec 31,2015 300000 75000 114,550
 Problem 4
When PP Corp acquired SS Co., SS had MV of net aset of 12500 and liabilities 2500.
Compete the journal entries for the acquisition if: A. the price is equal to net MV of SS Co. Paying
with notes. B. the price is 20% above to MV, issuing par 10 stock at 25/stock. C. The price is 15% less
than net MV of SS Co paying with cash

10,000 Journal entries A

75000 Investment in SS Co 122,500
Notes payable 122,500

Aset 125,000
Liabilities 2,500
Investment in Sub 122,500

ment>25%
Journal entries C
Investment in SS Co 104,125
Cash 104,125

Problem 5
On jan 3, 2019 PP corp. acquried SS Co. The following data is from PP corp & SS Co. balance sheet
Consolidated BS PP(BV) SS(MV)
550,000 Current aset 22,000 6,000
269,000 Plant aset 40,000 6,000
176,500 Liabilities 15,000 2,000
218,000 Complete the following consolidated balance sheet if:
- A. Paid 9500 cash for the acquisition
511,000 B. Issued 500 stock at 25
739,000 C. Paid in cash 5000 dan issued notes 4000
178,500 D. Issue 400 stock at @15 and notes 4000
- Consolidated Balance Sheet
2,642,000 A B
275,000 Current aset 18,500 28,000
517,500 Plant aset 46,000 46,000
1,000,000 Goodwill
250,000 Total Assets 64,500 74,000
489,948 Liabilities 17,000 17,000
109,552 Common stock par 10 30,000 35,000
2,642,000 Paid in capital 5,000 12,500
Retained earnings 12,500 12,000
Total Liab & equity 64,500 76,500

in SS stock
 abilities 2500. Net aset 125,000 par 10
al to net MV of SS Co. Paying Liabilities 2,500 mv 25
5/stock. C. The price is 15% less FV 122,500
B. 20%
C. 15%

Journal entries B
Investment in SS Co 147,000
Common stock 58,800
Paid in capital 88,200

Aset 125,000
Goodwill 24,500
Liabilities 2,500
Investment in SS Co 147,000

Aset 125,000
Liabilities 2,500
Investment in SS Co 104,125
Gain on SS acquisition 18,375

corp & SS Co. balance sheet

PP(BV) a. Investment in saw 9,500
Common stock par 10 30,000 Cash 9,500
Paid in capital 5,000 b. Investment in saw 12,500
Retained earnings 12,000 Common stock 5,000
Paid in capital 7,500
c. Investment in saw 9,000
Cash 5,000
Notes payable 4,000

nsolidated Balance Sheet

C D
23,000 28,000
46,000 46,000
-1,000 -
68,000 74,000
21,000 21,000
30,000 34,000
5,000 7,000
12,000 12,000
68,000 74,000
d. Investment in saw 10,000
Common stock 4,000
Paid in capital 2,000
Notes payable 4,000

net aset 10,000

Problem 1

Data entry
10 25% 2,500 42 180,000 7.5
12 15% 1,500 45 175,000 3
10 40% 4,000 47.5
80%
Collecting fund 400,000
MV 40
Show your calculations :
Investment in Saw Co Stocks on Dec. 31, 2016
(2500*42)+(25%*125000)-(25%*7.5*10000) 130,000
Income & dividend from Saw on Dec.31,2016 45000 25%*180000 No. Dividend since investment>25%
Investment in Saw's Stocks on jan 3, 2017 197,500 130000+(15%*45*10000)
Investment in Saw's Stocks on Dec. 31, 2017 248,208 197500+(((25%*10/12)+(15%*12/12))*175000)-((25%+15%
% Controlling interest on may. 3, 2018 80% 20%
Investment in Saw Stocks on may. 3, 2018 438,208

Problem 2
complete the consolidated Balance sheet from case C
Pat BV Saw MV Adjustment
Cash 300,000 250,000 250,000
Account Receivable 50,000 219,000 219,000
Inventory 100,000 76,500 76,500
Other Current Assets 9,000 209,000 209,000
Investment in Saw 438,208 438,208
Land 450,000 61,000 61,000
Buildings (net) 539,000 200,000 200,000
Equipment (net) 51,000 127,500 127,500
goodwill
total assets 1,937,208 1,143,000
Account Payable 25,000 250,000 250,000
Loan Payable 217,500 300,000 300,000
Capital Stock par $10 1,000,000
Paid in Capital 250,000
Retained Earnings 444,708 45,240
minority interest 109,552
total liabilities and eqity 1,937,208 1,143,000 1,143,000
net assets 593,000
 investment 438,208
gain (45,240)
implied value 547,760
 10,000
75000

ce investment>25%
130000+(15%*45*10000)
2/12))*175000)-((25%+15%)*3*10000)

Consolidated BS
550,000
269,000
176,500
218,000
-
511,000
739,000
178,500
-
2,642,000
275,000
517,500
1,000,000
250,000
489,948
109,552
2,642,000
Problem 3

Capital stock 100,000 outstanding 10,000

Par Value 10
Paid in capital 200,000

stock acquired MV of SS stock SS Income SS dividend

on Jan 3,2015 12% 13
oct 31,2015 300 shares 15
dec 31,2015 200000 50000
apr.1 , 2016 2200 shares 16
dec 31,2015 300000 75000
 outs 10,000
Investment in SS st Controlling interest MV BULAN C. INT. SHARES
15,600 12% 13 12 12%
20,100 15% 15 3% 300
20,100 15%
47,800 34% 16 9 22% 2200
114,550 34%
Problem 4

Journal entries A Journal entries B

Investment in SS Co 122,500 Investment in SS Co 147,000
Notes payable 122,500 Common stock
Paid in capital
Aset 125,000
Liabilities 2,500 Aset 125,000
Investment in Sub 122,500 Goodwill 24,500
Liabilities
Investment in SS Co

Journal entries C Aset 125,000

Investment in SS Co 104,125 Liabilities
Cash 104,125 Investment in SS Co
Gain on SS acquisition
 Net aset 125,000 par 10
Liabilities 2,500 mv 25
FV 122,500
B. 20%
C. 15%

58,800
88,200

2,500
147,000

2,500
104,125
18,375
Problem 5
On jan 3, 2019 PP corp. acquried SS Co. The following data is from PP corp & SS Co. balance sheet
PP(BV) SS(MV) PP(BV) a.
Current aset 22,000 6,000 Common stock par 10 30,000
Plant aset 40,000 6,000 Paid in capital 5,000 b.
Liabilities 15,000 2,000 Retained earnings 12,000

c.

Consolidated Balance Sheet

A B C D
Current aset 18,500 28,000 23,000 28,000
Plant aset 46,000 46,000 46,000 46,000
Goodwill -1,000 -
Total Assets 64,500 74,000 68,000 74,000
Liabilities 17,000 17,000 21,000 21,000
Common stock par 10 30,000 35,000 30,000 34,000
Paid in capital 5,000 12,500 5,000 7,000
Retained earnings 12,500 12,000 12,000 12,000
Total liab & equity 64,500 76,500 68,000 74,000
Investment in saw 9,500 d. Investment in saw 10,000
Cash 9,500 Common stock 4,000
Investment in saw 12,500 Paid in capital 2,000
Common stock 5,000 Notes payable 4,000
Paid in capital 7,500
Investment in saw 9,000 net aset 10,000
Cash 5,000
Notes payable 4,000