Assume that PT. ORTU purchase 60% of the common stock of PT.

BOCAH on January 2, 2010 for its book

value. The following financial statements are presented for PT. ORTU and PT. BOCAH

PT. ORTU and PT. BOCAH

Financial Statement, December 31, 2017

PT. ORTU PT. BOCAH

Comprehensive Income
Sales Rp 800,000,000 Rp 300,000,000
Cost Of Goods Sold Rp (400,000,000) Rp (100,000,000)
Operating Expense Rp (100,000,000) Rp (150,000,000)
Net Income Rp 300,000,000 Rp 50,000,000
Retained Earnings Statement
Retained Earnings January, 1 Rp 60,000,000 Rp 30,000,000
Net Income Rp 300,000,000 Rp 50,000,000
Rp 360,000,000 Rp 80,000,000
Dividends Declared Rp (200,000,000) Rp (40,000,000)
Retained Earnings December, 31 Rp 160,000,000 Rp 160,000,000
Financial Position
Investment in PT. BOCAH Stock Rp 82,800,000
Cash Rp 145,200,000 Rp 90,000,000
Accounts Receivable Rp 60,000,000 Rp 30,000,000
Inventory Rp 50,000,000 Rp 40,000,000
Transportation Rp 60,000,000
Depreciate Accumulation Rp (20,000,000)
Land and Building Rp 232,000,000 Rp 80,000,000
Total Asset Rp 610,000,000### Rp 240,000,000

Account Payable Rp 150,000,000 Rp 80,000,000

Common Stock Rp 300,000,000 Rp 120,000,000
Retained Earnings Rp 160,000,000 Rp 40,000,000
Total Liabilities and Equities Rp 610,000,000### Rp 240,000,000

a. PT. ORTU sells the inventory of the year to PT. BOCAH for Rp. 100.000.000 (gross profit 30%)
b. PT. BOCAH still has inventory on end of the year 2016 for Rp. 40.000.000 that become from buying PT.
ORTU (gross profit 30%)

c. PT. BOCAH still has inventory on end of the year 2017 for Rp. 50.000.000 that become from buying PT.
ORTU (gross profit 30%)
d. PT. ORTU sells Transportation to PT. BOCAH for Rp. 50.000.000. at that time the book value of the
transportation is Rp. 40.000.000 and is being over a total life of 5 year using straight line depreciation with
no residual value.
PT. ORTU sells Transportation to PT. BOCAH for Rp. 50.000.000. at that time the book value of the
transportation is Rp. 40.000.000 and is being over a total life of 5 year using straight line depreciation with
no residual value.
1.a. Consolidated Net Income
PT. Ortu's proportionate share 60% x Rp. 50.000.000 Rp 30,000,000
Realized gross profit of inventory 30% x Rp. 40.000.000 Rp 12,000,000
Rp 42,000,000
Unrealized gross profit of inventory 30% x Rp. 50.000.000 Rp 15,000,000
Income from subsidiary Rp 27,000,000
Separate operating income of PT.ORTU Rp 300,000,000
Consolidated Net Income Rp 327,000,000

Investment in PT. BOCAH Stock

Date Item Debit Kredit Balance
1-Jan Purchase Rp 82,800,000 Rp 82,800,000
31-Dec Income From PT. BOCAH Rp 27,000,000 Rp 109,800,000
31-Dec Dividen Declared Rp 24,000,000 Rp 85,800,000
1.b. PT. ORTU record transaction
Date Item Debit Kredit
Investment In PT. BOCAH Stock Rp 27,000,000
Income From Subsidiary Rp 27,000,000
Record Income from subsidiary
Note : Didapat dari perhitungan Consolidated Net Income "Income From Subsidiary"
Cash Rp 24,000,000
Investment In PT. BOCAH Stock Rp 24,000,000
Record Dividends from Subsidiary
Note : % yang dibeli oleh induk x Deviden Declared PT. BOCAH
60% x Rp. 40.000.000 = Rp 24.000.000

Elimination entry as following acquision

Date Item Debit Kredit
Common Stock Rp 120,000,000
Retained Earnings, January 2 * Rp 18,000,000
A
Investment in PT. BOCAH Stock ** Rp 82,800,000
Noncontroling Interest *** Rp 55,200,000
Eliminate begining investment balance
Note :
* Retained earning PT BOCAH on January 2, 2017 Rp 30,000,000
Realized gross profit inventory 40% x Rp. 10.000.000 Rp (12,000,000)
Retained Earnings, January 2 Rp 18,000,000
** Meng 0 saldo awal akun Investmen in PT. BOCAH Stock
*** Perhitungan agar saldo D & K Balance
Income from Subsidiary * Rp 27,000,000
B Deviden Declared ** Rp 24,000,000
Investment in PT. BOCAH Stock *** Rp 3,000,000
Eliminate Income From Subsidiary
Note :
* Income From Subsidiary didapat dari jurnal record transaction untuk meng 0 kan saldo akun
** Deviden Declared = % yang dibeli PT.ORTU x Deviden Declared PT. BOCAH
= 60% x Rp. 40.000.000
= Rp. 24.000.000
*** Income From Subsidiary - Deviden Declared
Rp. 27.000.000 - Rp. 24.000.000 = Rp. 3.000.000
Income to Noncontroling Interest * Rp 20,000,000
C Deviden Declared ** Rp 16,000,000
Noncontroling Interest *** Rp 4,000,000
Eliminate to assign income to noncontroling interest
Note :
* % yang tidak dibeli PT. ORTU x Net Income PT. BOCAH
40% x Rp. 50.000.000 = Rp. 20.000.000
** % yang tidak dibeli PT. ORTU x Deviden Declared PT. BOCAH
40% x Rp. 40.000.000 = Rp. 16.000.000
*** Income to Noncontroling Interest - Deviden Declared
Rp. 20.000.000 - Rp. 16.000.000 = Rp. 4.000.000
Sales * Rp 100,000,000
D
Cost of Goods Sold Rp 100,000,000
Eliminate intercompany downstream sale of inventory
Note :
* Sales didapat dari soal a
Retained Earnings, January 2 * Rp 12,000,000
E
Cost of Goods Sold Rp 12,000,000
Eliminate gross profit inventory, January 1, 2017
Note :
* Gross profit x Persediaan awal tahun 2017 (soal b)
30% x Rp. 40.000.000 = Rp. 12.000.000
Cost of Goods Sold * Rp 15,000,000
F
Inventory Rp 15,000,000
Eliminate gross profit inventory, December 31, 2017
Note :
* Gross profit x Persediaan akhir tahun 2017 (soal c)
30% x Rp. 50.000.000 = Rp. 15.000.000
1.c. Three-part consolidation workpaper
Workpaper for Consolidated Financial Statement (Rp. 000)

Elimination
Items PT. ORTU PT. BOCAH Consolidated
Debit Kredit
Comprehensive Income
Sales 800,000 300,000 100,000 1,000,000
Cost Of Goods Sold -400,000 -100,000 15,000 100,000 -403,000
12,000
Operating Expense -100,000 -150,000 -250,000
Net Income 300,000 50,000 347,000
Income From Subsidiary 27,000 27,000 0
Income Non Controling Interest 20,000 -20,000
Consolidated Net Income 327,000 327,000

Retained Earnings Statement

Retained Earnings January, 1 60,000 30,000 60,000
(Consolidated) Net Income 327,000 50,000 327,000
387,000 80,000 387,000
24,000
Dividends Declared -200,000 -40,000 -200,000
16,000
Retained Earnings December, 31 187,000 40,000 187,000

Financial Position
82,800
Investment in PT. BOCAH Stock 85,800 0
3,000
Cash 169,200 90,000 259,200
Accounts Receivable 60,000 30,000 90,000
Inventory 50,000 40,000 15,000 75,000
Transportation 60,000 60,000
Depreciate Accumulation -20,000 -20,000
Land and Building 232,000 80,000 312,000
Total Asset 637,000 240,000 776,200

Account Payable 150,000 80,000 230,000

Common Stock 300,000 120,000 120,000 300,000
Retained Earnings 187,000 40,000 30,000 187,000
55,200
Noncontroling Interest 59,200
4,000
Total Liabilities and Equities 637,000 240,000 312,000 312,000 776,200
 The gain recognized by PT. BOCAH on the intercompany sale of the Equipment is:
Sale price of the transportation Rp 50,000,000
Original cost to PT. ORTU Rp 60,000,000
Accumulate depreciation on 31 December 31 Rp (20,000,000)
Book value of the transportation Rp 40,000,000
Gain on sale of the transportation Rp 10,000,000

2.a Consolidated Net Income

Separate operating income of PT. BOCAH Rp 50,000,000
Depreciation expense (Rp. 50.000.000/5 years) Rp (10,000,000)
Net Income of PT. BOCAH Rp 40,000,000
PT. ORTU's proportionate share 60% x Rp. 40.000.000 Rp 24,000,000
Unrealized gain on sale of transportation Rp (10,000,000)
Rp 14,000,000
Realized gain on sale of transportation (Rp. 10.000.000/5 years Rp 2,000,000
Income from subsidiary Rp 16,000,000
Separate operating income of PT ORTU Rp 300,000,000
Gain on sale of the transportation Rp 10,000,000
Consolidated Net Income Rp 326,000,000

Investment in PT.BOCAH Stock

Date Item Debit Kredit Balance
1-Jan Purchase Rp 82,800,000 Rp 82,800,000
31-Dec Income From PT. BOCAH Rp 16,000,000 Rp 98,800,000
31-Dec Dividen Declared Rp 24,000,000 Rp 74,800,000
2.b. PT. ORTU record transaction
Date Item Debit Kredit
Cash Rp 50,000,000
Accumulated Depreciation Rp 20,000,000
Transportation Rp 60,000,000
Gain on Sale of Transportation Rp 10,000,000
Record sale of transportation
Note :
Didapat dari masing masing akun di Financial Statement untuk meng 0 kan saldo akun yang berkaitan
Investment in PT. BOCAH Stock Rp 16,000,000
Income From Subsidiary Rp 16,000,000
Record Income from subsidiary
Note : Didapat dari perhitungan Consolidated Net Income "Income From Subsidiary"
Cash Rp 24,000,000
Investment In PT. BOCAH Stock Rp 24,000,000
Record Dividends from Subsidiary
Note : % yang dibeli oleh induk x Deviden Declared PT. BOCAH
60% x Rp. 40.000.000 = Rp 24.000.000

PT. BOCAH record transaction

Date Item Debit Kredit
Transportation Rp 50,000,000
Depreciation Expense Rp 10,000,000
Cash Rp 50,000,000
Accumulated Depreciation Rp 10,000,000

Elimination entry as following acquision

Date Item Debit Kredit
Common Stock Rp 120,000,000
Retained Earnings, January 2 Rp 30,000,000
A
Investment in PT. BOCAH Stock * Rp 78,000,000
Noncontroling Interest ** Rp 72,000,000
Eliminate begining investment balance
Note :
*Meng 0 saldo awal akun Investmen in PT. BOCAH Stock
** Perhitungan agar saldo D & K Balance
Income from Subsidiary * Rp 16,000,000
B Investment in PT. BOCAH Stock ** Rp 8,000,000
Deviden Declared *** Rp 24,000,000
Eliminate Income From Subsidiary
Note :
* Income From Subsidiary didapat dari jurnal record transaction untuk meng 0 kan saldo akun
** Income From Subsidiary - Deviden Declared
Rp. 24.000.000 - Rp. 16.000.000 = Rp. 8.000.000
*** Deviden Declared = % yang dibeli PT.ORTU x Deviden Declared PT. BOCAH
= 60% x Rp. 40.000.000
= Rp. 24.000.000
Income to Noncontroling Interest * Rp 16,000,000
C
Deviden Declared ** Rp 16,000,000
Eliminate to assign income to noncontroling interest
Note :
* % yang tidak dibeli PT. ORTU x Net Income PT. BOCAH (Baru)
40% x Rp. 40.000.000 = Rp. 16.000.000
** % yang tidak dibeli PT. ORTU x Deviden Declared PT. BOCAH
40% x Rp. 40.000.000 = Rp. 16.000.000
Gain on sale of Transportation Rp 10,000,000
D
Transportation Rp 10,000,000
Eliminate intercompany downstream sale of transportation
Note :
* Didapat dari perhitungan gain on sale of the transportation untuk meng 0 saldo gain on sale of
transportation
Accumulate Depreciation Rp 2,000,000
E
Depreciation Expense Rp 2,000,000
Eliminate difference record between PT. ORTU and PT. BOCAH
Note :
* Gain on sale / total life
Rp. 10.000.000/5 years = Rp. 2.000.000
2.c. Three-part consolidation workpaper
Workpaper for Consolidated Financial Statement (Rp. 000)

Elimination
Items PT. ORTU PT. BOCAH Consolidated
Debit Kredit
Comprehensive Income
Sales 800,000 300,000 1,100,000
Cost Of Goods Sold -400,000 -100,000 -500,000
Operating Expense -100,000 -150,000 -250,000
Depreciation Expense -10,000 2,000 -8,000
Net Income 300,000 40,000 342,000
Gain on Sale of Transportation 10,000 10,000
Income From Subsidiary 16,000 16,000 0
Income Non Controling Interest 16,000 -16,000
Consolidated Net Income 326,000 326,000

Retained Earnings Statement

Retained Earnings January, 1 60,000 30,000 60,000
(Consolidated) Net Income 326,000 40,000 326,000
386,000 70,000 386,000
24,000
Dividends Declared -200,000 -40,000 -200,000
16,000
Retained Earnings December, 31 186,000 30,000 186,000

Financial Position
Investment in PT. BOCAH Stock 74,800 8,000 78,000 4,800
Cash 219,200 40,000 259,200
Accounts Receivable 60,000 30,000 90,000
Inventory 50,000 40,000 90,000
Transportation 50,000 10,000 40,000
Depreciate Accumulation -10,000 2,000 -8,000
Land and Building 232,000 80,000 312,000
Total Asset 636,000 230,000 788,000

Account Payable 150,000 80,000 230,000

Common Stock 300,000 120,000 120,000 300,000
Retained Earnings 186,000 30,000 30,000 186,000
Noncontroling Interest 72,000 72,000
Total Liabilities and Equities 636,000 230,000 202,000 202,000 788,000
The gain recognized by PT. ORTU on the intercompany sale of the Transportationt is:
Sale price of the transportation Rp 50,000,000
Original cost to PT. ORTU Rp 60,000,000
Accumulate depreciation on 31 December 31 -Rp 20,000,000
Book value of the transportation Rp 40,000,000
Gain on sale of the transportation Rp 10,000,000

Consolidated Net Income

Separate operating income of PT. BOCAH Rp 50,000,000
Realized gross profit of inventory 2016 = 30% x Rp. 40.000.000 Rp 12,000,000
Rp 62,000,000
Unrealized gross profit of inventory 2017 = 30% x Rp. 50.000.000 -Rp 15,000,000
Depreciation expense (Rp. 50.000.000/5 years) -Rp 10,000,000
Net Income of PT. BOCAH Rp 37,000,000
PT. ORTU's proportionate share 60% x Rp. 37.000.000 Rp 22,200,000
Unrealized gain on sale of transportation -Rp 10,000,000
Rp 12,200,000
Realized gain on sale of transportation (Rp. 10.000.000/5 years Rp 2,000,000
Income from subsidiary Rp 14,200,000
Separate operating income of PT ORTU Rp 300,000,000
Gain on sale of the transportation Rp 10,000,000
Consolidated Net Income Rp 324,200,000

Investment in PT.BOCAH Stock

Date Item Debit Kredit Balance
1-Jan Purchase Rp 82,800,000 Rp 82,800,000
31-Dec Income From PT. BOCAH Rp 14,200,000 Rp 97,000,000
31-Dec Dividen Declared Rp 24,000,000 Rp 73,000,000
PT. ORTU record transaction
Date Item Debit Kredit
Cash Rp 50,000,000
Accumulated Depreciation Rp 20,000,000
Transportation Rp 60,000,000
Gain on Sale of Transportation Rp 10,000,000
Record sale of transportation
Note :
Didapat dari masing masing akun di Financial Statement untuk meng 0 kan saldo akun yang berkaitan
Investment in PT. BOCAH Stock Rp 14,200,000
Income From Subsidiary Rp 14,200,000
Record Income from subsidiary
Note : Didapat dari perhitungan Consolidated Net Income "Income From Subsidiary"
Cash Rp 24,000,000
Investment In PT. BOCAH Stock Rp 24,000,000
Record Dividends from Subsidiary
Note : % yang dibeli oleh induk x Deviden Declared PT. BOCAH
60% x Rp. 40.000.000 = Rp 24.000.000

PT. BOCAH record transaction

Date Item Debit Kredit
Transportation Rp 50,000,000
Depreciation Expense Rp 10,000,000
Cash Rp 50,000,000
Accumulated Depreciation Rp 10,000,000

Elimination entry as following acquision

Date Item Debit Kredit
Common Stock Rp 120,000,000
Retained Earnings, January 2 * Rp 18,000,000
A
Investment in PT. BOCAH Stock ** Rp 82,800,000
Noncontroling Interest *** Rp 55,200,000
Eliminate begining investment balance
Note :
* Retained earning PT BOCAH on January 2, 2017 Rp 30,000,000
Realized gross profit inventory 30% x Rp. 40.000.000 Rp (12,000,000)
Retained Earnings, January 2 Rp 18,000,000
** Meng 0 saldo awal akun Investmen in PT. BOCAH Stock
*** Perhitungan agar saldo D & K Balance
Income from Subsidiary * Rp 14,200,000
B Investment in PT. BOCAH Stock ** Rp 9,800,000
Deviden Declared *** Rp 24,000,000
Eliminate Income From Subsidiary
Note :
* Income From Subsidiary didapat dari jurnal record transaction untuk meng 0 kan saldo akun
** Income From Subsidiary - Deviden Declared
Rp. 24.000.000 - Rp. 16.000.000 = Rp. 8.000.000
*** Deviden Declared = % yang dibeli PT.ORTU x Deviden Declared PT. BOCAH
= 60% x Rp. 40.000.000
= Rp. 24.000.000
Income to Noncontroling Interest * Rp 14,800,000
C Noncontroling Interest ** Rp 1,200,000
Deviden Declared *** Rp 16,000,000
Eliminate to assign income to noncontroling interest
Note :
* % yang tidak dibeli PT. ORTU x Net Income PT. BOCAH (Baru)
40% x Rp. 37.000.000 = Rp. 14.800.000
** Karena hasil D & K tidak balance maka muncul akun Noncontroling Interest
*** % yang tidak dibeli PT. ORTU x Deviden Declared PT. BOCAH
40% x Rp. 40.000.000 = Rp. 16.000.000
Gain on sale of Transportation Rp 10,000,000
D
Transportation Rp 10,000,000
Eliminate intercompany downstream sale of transportation
Note :

* Didapat dari perhitungan gain on sale of the transportation untuk meng 0 saldo gain on sale of transportation
Accumulate Depreciation Rp 2,000,000
E
Depreciation Expense Rp 2,000,000
Eliminate difference record between PT. ORTU and PT. BOCAH
Note :
* Gain on sale / total life
Rp. 10.000.000/5 years = Rp. 2.000.000
Sales * Rp 100,000,000
D
Cost of Goods Sold Rp 100,000,000
Eliminate intercompany downstream sale of inventory
Note :
* Sales didapat dari soal a
Retained Earnings, January 2 * Rp 12,000,000
E
Cost of Goods Sold Rp 12,000,000
Eliminate gross profit inventory, January 1, 2017
Note :
* Gross profit x Persediaan awal tahun 2017 (soal b)
30% x Rp. 40.000.000 = Rp. 12.000.000
Cost of Goods Sold * Rp 15,000,000
F
Inventory Rp 15,000,000
Eliminate gross profit inventory, December 31, 2017
Note :
* Gross profit x Persediaan akhir tahun 2017 (soal c)
30% x Rp. 50.000.000 = Rp. 15.000.000
 Workpaper for Consolidated Financial Statement (Rp. 000)

Elimination
Items PT. ORTU PT. BOCAH
Debit
Comprehensive Income
Sales Rp 800,000,000 Rp 300,000,000 100,000,000
Cost Of Goods Sold Rp (400,000,000) Rp (100,000,000) 15,000,000
Operating Expense Rp (100,000,000) Rp (150,000,000)
Depreciation Expense -10,000,000
Net Income 300,000,000 40,000,000
Gain on Sale of Transportation -10,000,000 10,000,000
Income From Subsidiary -14,200,000 14,200,000
Income Non Controling Interest 14,800,000
Consolidated Net Income 324,200,000 40,000,000

Retained Earnings Statement

Retained Earnings January, 1 Rp 60,000,000 Rp 30,000,000
(Consolidated) Net Income Rp 324,200,000 Rp 40,000,000
384,200,000 70,000,000

Dividends Declared -200,000,000 -40,000,000

Retained Earnings December, 31 184,200,000 30,000,000

Financial Position
Investment in PT. BOCAH Stock Rp 73,000,000 9,800,000
Cash Rp 219,200,000 Rp 40,000,000
Accounts Receivable Rp 60,000,000 Rp 30,000,000
Inventory Rp 50,000,000 Rp 40,000,000
Transportation Rp - Rp 50,000,000
Depreciate Accumulation Rp - Rp (10,000,000) 2,000,000
Land and Building Rp 232,000,000 Rp 80,000,000
Total Asset 634,200,000 230,000,000

Account Payable Rp 150,000,000 Rp 80,000,000

Common Stock Rp 300,000,000 Rp 120,000,000 120,000,000
Retained Earnings Rp 184,200,000 Rp 30,000,000 30,000,000
Noncontroling Interest 1,200,000
Total Liabilities and Equities 634,200,000 230,000,000
Rp. 000)

Elimination
Consolidated
Kredit

1,000,000,000
112,000,000 -403,000,000
-250,000,000
2,000,000 -8,000,000
339,000,000
0
0
-14,800,000
324,200,000

60,000,000
324,200,000
384,200,000
24,000,000
-200,000,000
16,000,000
184,200,000

82,800,000 0
259,200,000
90,000,000
15,000,000 75,000,000
10,000,000 40,000,000
-8,000,000
312,000,000
768,200,000

230,000,000
300,000,000
184,200,000
55,200,000 54,000,000
768,200,000