Jawaban Advance Bab 4 S4-24 Saldo konsolidasi (diadaptasi dari AICPA)

a.     Entry on Primary's books to record acquisition of Street stock:

	Investment in Street Stock	650,000
	Bonds Payable		650,000
	Note: The bonds go directly to the stockholders of Street and are not recorded on the books of Street.

b.  Eliminating entries:

E(1)	Common Stock – Street Company	200,000
	Additional Paid-In Capital	130,000
	Retained Earnings	148,000
	Differential	172,000
	Investment in Street Stock		650,000
E(2)	Inventory	4,000
	Land	20,000
	Buildings and Equipment	50,000
	Patent	40,000
	Discount on Bonds Payable	10,000
	Goodwill	48,000
	Differential		172,000
E(3)	Current Payables	6,500
	Receivables		6,500
The FASB now requires that no allowance accounts be carried forward from the acquiree in a business combination. However, because of immateriality and the short-lived nature of the carry forward subsequent to the date of combination, the allowance in this problem has not been offset against the receivable. If such an offset is desired, the following elimination entry would be made:
E(4)	Allowance for Bad Debts	1,000
	Receivables		1,000

c.	Primary Corporation and Street Company Consolidated Balance Sheet Workpaper January 2, 20X8
		Primary	Street	Eliminations		Consol-
Item		Corp.	Company	Debit	Credit	idated
Cash		12,000	9,000			21,000
Receivables		41,000	31,000		(3)    6,500	65,500
Inventory		86,000	68,000	(2)    4,000		158,000
Investment in
Street Stock		650,000			(1)650,000
Land		55,000	50,000	(2)  20,000		125,000
Buildings and Equipment		960,000	670,000	(2)  50,000		1,680,000
Patent				(2)  40,000		40,000
Goodwill				(2)  48,000		48,000
Discount on
Bonds Payable				(2)  10,000		10,000
Differential				(1)172,000	(2)172,000
Total Assets		1,804,000	828,000			2,147,500
Allowance for Bad Debts		2,000	1,000			3,000
Accumulated
Depreciation		411,000	220,000			631,000
Current Payables		38,000	29,000	(3)    6,500		60,500
Bonds Payable		850,000	100,000			950,000
Common Stock		300,000	200,000	(1)200,000		300,000
Additional
Paid-In Capital		100,000	130,000	(1)130,000		100,000
Retained Earnings		103,000	148,000	(1)148,000	_________	103,000
Total Liabilities
and Equity		1,804,000	828,000	828,500	828,500	2,147,500

d.	Primary Corporation and Subsidiary Consolidated Balance Sheet January 2, 20X8
		Cash		$     21,000
		Receivables	$     65,500
		Less: Allowance for Bad Debts	(3,000)	62,500
		Inventory		158,000
		Land		125,000
		Buildings and Equipment	$1,680,000
		Less: Accumulated Depreciation	(631,000)	1,049,000
		Patent		40,000
		Goodwill		48,000
		Total Assets		$1,503,500
		Current Payables		$     60,500
		Bonds Payable	$  950,000
		Less: Discount on Bonds Payable	(10,000)	940,000
		Stockholders’ Equity
		Common Stock	$  300,000
		Additional Paid-In Capital	100,000
		Retained Earnings	103,000	503,000
		Total Liabilities and
		Stockholders' Equity		$1,503,500