Case a_Parents purchase of additional shares from non affiliate

Percentage Acq cost BV of NA acquired

Acquisition 1 31-Dec-08 70% 140,000 140,000
Acqudition 2 1-Jan-10 10% 32,500 22,500

2009 2010
Equity end 225,000 260,000
equity beg 200,000 225,000
25,000 35,000
Div 10,000 10,000
Net Income 35,000 45,000

Balance of investment as of Dec 31, 2009 PT Matahari entry

1-Jan-10
NA trevor Dec 31, 2009 225,000 Investment 32,500
Ownership 70% Cash
Investment balance 157,500 31-Dec-10
Investment 36,000
Balance of investment December 31, 2010 Income from subsi
Cash 8,000
NA trevor Dec 31, 2010 260,000 Investment
Ownership 80% Income from subsi 2,000
208,000 Investment
Dif 10,000
Amort dif (2,000)
Ending bal of investment 216,000

Case b_ parent sale of subsidiary shares to non affiliate

Jan 1 20X7 31 Dec 20x7 20x8
CS 100,000 100,000 100,000
RE 200,000 220,000 240,000
300,000 320,000 340,000
BV acquired 225,000 at BV
75%
Investment balance 31 Dec 20X8 255,000 Answer No.1
Share outstanding 10,000
Share own before the sale 7,500
Sold 1500 20%
BV of invest sold 51,000 New ownership
Proceed 60,000 NCI New
Gain 9,000 Invest balan after the sale
Answer no 2
Journal entry
Cash 60,000
Investment in Mini co 51,000 Beginning 1 Jan 20X9
 APIC (share premium prdinary)/Gain 9,000 Sold
Ending 1 Jan 20X9
Income
Div
Answer No 3 Ending 31 Dec 20X9
Elimination Entry for 20X9
E(1)
Gain 9,000
APIC 9,000

E(2)

CS 100,000
RE 240,000
Income from subsi 18000
Income to NCI 12000
Investment 216,000
Div declared 10000
NCI in net assets 144,000
370,000 370,000
 Dif
-
10,000
Amortize 5 year
2000 Annualy amort

32,500

36,000

8,000

2,000

interest sold
60%
12,000
204,000

Parent NCI = CS RE
255,000 85,000 100,000 240,000
(51,000) 51,000
204,000 136,000 100,000 240,000
18000 12000 30000
-6000 -4000 -10000
216,000 144,000 = 100,000 260,000
Case C
PT ABC
Percentage Number of sharCost (at BV)
January 1, 20X7 80% 40,000 Unknown but at BV
Dec 31, 20X7 680,000

Additional sales by subs to non af Number of sharPurchase price

Jan 1 , 20X8 12,500 312,500

Equity subsi
Before After
CS 500,000 625,000
APIC 187,500
RE 350,000 350,000
Total 850,000 1,162,500
Shares outstanding 50,000 62,500
Parent ownership 0.8 0.64
BV assign to parent 680,000 744,000 Changes in BV of investment parent
NCI 170,000 418,500

Investment 64,000
Share premium ordinary (APIC) 64,000

Elimination entry for 20X8

CS 625,000
APIC 187,500
RE 350,000
Investment 744,000
NCI 418,500
1162500 1162500

Case D
Pisa Company
Percentage Number of sharCost (at BV)
January 1, 20X7 80% 40,000 Unknown but at BV
Dec 31, 20X7 680,000

Additional sales by subs to non af Number of sharPurchase price

Jan 1 , 20X8 12,500 312,500

Equity subsi
Before After
CS 500000 625000 Investment beginning
APIC 187500 Additional shares
RE 350000 350000 Ending balance
Total 850,000 1,162,500
Shares outstanding 50000 62500
Parent ownership 0.8 0.84 Purcahse Price
BV assign to parent 680,000 976,500 Increase in BV
NCI 170,000 186,000 Dif
Changes in NCI 16,000
680
Elimination entry for 20X8 296,500
976,500
CS 625,000
APIC 203,500
RE 350,000
Investment 992,500
NCI 186,000
1,178,500 1,178,500
n BV of investment parent 64,000

nt beginning 680000
312500
992500
 312500
296,500
16,000
Case e
Subsidiarys purchase of shares from non affiliate
January 1 20X8
Before After
CS 50,000 50,000 CS 50,000
APIC 75,000 75,000 APIC 75,000
RE 60,000 60,000 RE 60,000
Total 185,000 185,000 Total 185,000
Treasury share (30,000)
Total NA 185,000 155,000
Shares outstanding 25,000 20,000
Parent share 17,500 17,500
Ownership 0.700 0.875
BV of investment 129,500 135,625 6,125

JE by parent
Dr Investment 6,125
Cr APIC 6,125

Elimination entry
CS 50,000
APIC 75,000
RE 60,000
Treasury shares 30,000
Investment 135,625
NCI 19,375.000
185,000 185,000

Case f
Subsidiarys purchase of shares from non affiliate
January 1 20X8
Before After
CS 50,000 50,000 CS 50,000
APIC 75,000 75,000 APIC 75,000
RE 60,000 60,000 RE 60,000
Total 185,000 185,000 Total 185,000
Treasury share (30,000)
Total NA 185,000 155,000 Changes in NCI
Shares outstanding 25,000 20,000 NCI After repurchase
Parent share 17,500 12,500 (37.5%*155,000)
Ownership 0.700 0.625 NCI before repurchase
BV of investment 129,500 96,875 (32,625) (30%*185,000)
Changes
JE by parent
Dr Cash 30,000
Dr APIC 2,625
 Cr Investment 32,625
Elimination entry

CS 50,000
APIC 75,000
RE 60,000
Treasury shares 30,000
Investment 96,875
NCI 58,125.0
185,000 185,000
58,125

55,500

2,625
1) Purchase price as April 1, 20X8 320,000
FV of NCI 80,000
400,000
BV acquired as April 20X8 Q1
CS 100000 NI 50,000
APIC 140000 Div 20,000
RE 130000 370,000
Goodwill 30,000

Equity Entry by PT A related to its investment in PT B

Investment in PT B 320,000
Cash 320,000
(To record purchase of the investment in PT B)

Investment 136,000.0
Income from Subsi 136,000.0
(share of income)

Cash 32,000.0
Investment 32,000.0
(share of div)

2) Elimination entrie
Q2-Q4
170,000 220,000
40,000 60,000