PAM CORPORATION AND SUBDIARY CONSOLIDATION WORKPAPER

FOR THE YEAR ENDED DECEMBER 31, 2017 (IN THOUSANDS)

Adjustment &
Elimination Consolidated
PAM SUN
Statements
Debits Credits
Income Statement Revenue
Sales $ 4,500 $ 1,900 $ 720 $ 5,680
Income from Sun $ 346 $ - $ 346 $ -
Gain on Sale Land $ 50 $ - $ 50 $ -
Cost of Sales $ -2,000 $ -1,000 $ 120 $ 720
$ 100 $ -2,300
Operating Expense $ -1,130 $ -400 $ 60 $ 20 $ -1,570
Non Controlling Interest Share $ 44
( ) $ -44
Net Income $ 1,766 $ 500 $ 1,766
Retained Earning Statement :
Retained Earning 1 Januari $ 2,000 $ 1,200 $ 1,200 $ 2,000
Add: Net Income $ 1,766 $ 500 $ 1,766
Deduct : Deviden $ -1,500 $ -200 $ 180
$ 20 $ -1,500
Retained Earning 31 Desember $ 2,266 $ 1,500 $ 2,266
Balance Sheet
Asset
Cash $ 1,364 $ 140 $ 1,504
Account Receivable $ 1,800 $ 1,000 $ 100 $ 2,700
Dividen Receivable $ 180 $ - $ 180 $ -
Inventory $ 600 $ 360 $ 120 $ 840
Land $ 1,000 $ 300 $ 50 $ 1,250
Building-net $ 2,800 $ 800 $ 3,600
Machinery-net $ 3,300 $ 1,400 $ 40 $ 4,660
Investment in Sun ( ) $ 2,922 $ - $ 100 $ 2,916
$ 60 $ 166 $ -
Patent $ 540 $ 60 $ 480
Total Asset $ 13,966 $ 4,000 $ 15,034
Liabilities and Equities
Account Payable $ 2,000 $ 500 $ 100 $ 2,400
Dividen Payable $ 300 $ 200 $ 180 $ 320
Other Liabilities $ 1,400 $ 300 $ 1,700
Common Stock, $ 8,000 $ 1,500 $ 1,500 $ 8,000
Retained Earnings $ 2,266 $ 1,500 $ 2,266
Non Controlling Interest Share 1 Januari
( ) $ 324 $ 324
Non Controlling Interest Share 31 Desember $ 24 $ 24
Total Liabilities and Equities $ 13,966 $ 4,000 $ 15,034

$ 5,020 $ 5,020
$ -
Historical Balance $ -
Perhitungan:
Skedul Investasi
Investment in Son 90% $ 2,700,000
100% $ 3,000,000
Equity from Son 90% $ 2,400,000
Excess $ 600,000

Inventory
PAM to SUN

2016 2017
Cost $ 500,000 Cost $ 600,000
Sales $ 600,000 Sales $ 720,000
Unrealized Profit $ 100,000 Unrealized Profit $ 120,000

Plant Assets
Land Book Value $ 150,000
Sale $ 200,000
Gain on Land $ 50,000

Machinery
Sold Book Value $ 280,000
2016 Sale $ 350,000
Gain on Land $ 70,000
Piecemeal 3,5 y $ 10,000

2017 Piecemeal 3,5 y $ 20,000

Machinery-net $ 40,000

Investment Income 100% 90% CI 10% NCI

Net Income $ 500,000 $ 450,000 $ 50,000
Excess Amortization: Patent = 600.000/10 $ -60,000 $ -54,000 $ -6,000
Unrealized Profit Beginning $ 100,000 $ 100,000 $ -
Unrealized Profit Ending $ -120,000 $ -120,000 $ -
Piecemeal Machinery $ 20,000 $ 20,000 $ -
Gain on Land $ -50,000 $ -50,000 $ -

Investment Income $ 390,000 $ 346,000 $ 44,000

Adjustment & Elimination Journal

Capital Stock $ 1,500,000

Retained Earning $ 1,200,000
Patent $ 540,000
Investment in Son $ 2,916,000
NonControlling Interest $ 324,000
To eliminated reciprocal Equity and Investment balances, enter Patent and NCI
$ -
Income from Son $ 346,000
Dividend $ 180,000 Dividen
Investment In Son $ 166,000
To eliminated Income and Dividends from Son and return the investment account
to its beginning of the period balance
$ -
NCI share $ 44,000
Dividend $ 20,000
Investment In Son $ 24,000

To eliminated Income and Dividends from Son and enter NCI share
$ -
Sales $ 720,000
Cost of Sales $ 720,000
To eliminated reciprocal Sales and Cost of Sales
$ -
Investment in Son $ 100,000
Cost of Sales $ 100,000
To eliminated Unrealized Profit Beginning

Cost of Sales $ 120,000

Inventory $ 120,000
To eliminated Unrealized Profit Ending

Investment in Sun $ 60,000

Operating Expense $ 20,000
Machinery-net $ 40,000
To eliminated Piecemeal

Account Payable $ 100,000

Account Receivable $ 100,000
To eliminated Reciprocal Account Payable and Receivable

Operating Expense $ 60,000

Patent $ 60,000
To Enter Amortization of Patent
Dividen Payable $ 180,000
Dividen Receivable $ 180,000
To Eliminate Reciprocal Dividen Payable and Account Receivable
Allocated to Patent $ 600,000

Downstream
Downstream
Downstream
Downstream
$ 200,000 90% $ 180,000
10% $ 20,000
ARNAB CORPORATION AND SUBDIARY CONSOLIDATION WORKPAPER
FOR THE YEAR ENDED DECEMBER 31, 2017 (IN THOUSANDS)
Adjustment &
Elimination Consolidated
ARNAB BITT
Statements
Debits Credits
Income Statement Revenue
Sales $ 4,500 $ 1,900 $ 720 $ 5,680
Income from Sun $ 346 $ - $ 346 $ -
Gain on Sale Land $ 50 $ - $ 50 $ -
Cost of Sales $ -2,000 $ -1,000 $ 120 $ 720
$ 100 $ -2,300
Operating Expense $ -1,130 $ -400 $ 60 $ 20 $ -1,570
Non Controlling Interest Share
( ) $ 44 $ -44
Net Income $ 1,766 $ 500 $ 1,766
Retained Earning Statement :
Retained Earning 1 Januari $ 2,000 $ 1,200 $ 1,200 $ 2,000
Add: Net Income $ 1,766 $ 500 $ 1,766
Deduct : Deviden $ -1,500 $ -200 $ 180
$ 20 $ -1,500
Retained Earning 31 Desember $ 2,266 $ 1,500 $ 2,266
Balance Sheet
Asset
Cash $ 1,364 $ 140 $ 1,504
Account Receivable $ 1,800 $ 1,000 $ 100 $ 2,700
Dividen Receivable $ 180 $ - $ 180 $ -
Inventory $ 600 $ 360 $ 120 $ 840
Land $ 1,000 $ 300 $ 50 $ 1,250
Building-net $ 2,800 $ 800 $ 3,600
Machinery-net $ 3,300 $ 1,400 $ 40 $ 4,660
Investment in Sun ( ) $ 2,922 $ - $ 100 $ 2,916
$ 60 $ 166 $ -
Patent $ 540 $ 60 $ 480
Total Asset $ 13,966 $ 4,000 $ 15,034
Liabilities and Equities
Account Payable $ 2,000 $ 500 $ 100 $ 2,400
Dividen Payable $ 300 $ 200 $ 180 $ 320
Other Liabilities $ 1,400 $ 300 $ 1,700
Common Stock, $ 8,000 $ 1,500 $ 1,500 $ 8,000
Retained Earnings $ 2,266 $ 1,500 $ 2,266
Non Controlling Interest Share 1 Januari
( ) $ 324 $ 324
Non Controlling Interest Share 31 Desember $ 24 $ 24
Total Liabilities and Equities $ 13,966 $ 4,000 $ 15,034

$ 5,020 $ 5,020
$ -
Historical Balance $ -
Perhitungan:
Skedul Investasi
Investment in Son 90% $ 2,700,000
100% $ 3,000,000
Equity from Son 90% $ 2,400,000
Excess $ 600,000

Inventory
PAM to SUN

2016 2017
Cost $ 500,000 Cost $ 600,000
Sales $ 600,000 Sales $ 720,000
Unrealized Profit $ 100,000 Unrealized Profit $ 120,000

Plant Assets
Land Book Value $ 150,000
Sale $ 200,000
Gain on Land $ 50,000

Machinery
Sold Book Value $ 280,000
2016 Sale $ 350,000
Gain on Land $ 70,000
Piecemeal 3,5 y $ 10,000

2017 Piecemeal 3,5 y $ 20,000

Machinery-net $ 40,000

Investment Income 100% 90% CI 10% NCI

Net Income $ 500,000 $ 450,000 $ 50,000
Excess Amortization: Patent = 600.000/10 $ -60,000 $ -54,000 $ -6,000
Unrealized Profit Beginning $ 100,000 $ 100,000 $ -
Unrealized Profit Ending $ -120,000 $ -120,000 $ -
Piecemeal Machinery $ 20,000 $ 20,000 $ -
Gain on Land $ -50,000 $ -50,000 $ -

Investment Income $ 390,000 $ 346,000 $ 44,000

Adjustment & Elimination Journal

Capital Stock $ 1,500,000

Retained Earning $ 1,200,000
Patent $ 540,000
Investment in Son $ 2,916,000
NonControlling Interest $ 324,000
To eliminated reciprocal Equity and Investment balances, enter Patent and NCI
$ -
Income from Son $ 346,000
Dividend $ 180,000 Dividen
Investment In Son $ 166,000
To eliminated Income and Dividends from Son and return the investment account
to its beginning of the period balance
$ -
NCI share $ 44,000
Dividend $ 20,000
Investment In Son $ 24,000

To eliminated Income and Dividends from Son and enter NCI share
$ -
Sales $ 720,000
Cost of Sales $ 720,000
To eliminated reciprocal Sales and Cost of Sales
$ -
Investment in Son $ 100,000
Cost of Sales $ 100,000
To eliminated Unrealized Profit Beginning

Cost of Sales $ 120,000

Inventory $ 120,000
To eliminated Unrealized Profit Ending

Investment in Sun $ 60,000

Operating Expense $ 20,000
Machinery-net $ 40,000
To eliminated Piecemeal

Account Payable $ 100,000

Account Receivable $ 100,000
To eliminated Reciprocal Account Payable and Receivable

Operating Expense $ 60,000

Patent $ 60,000
To Enter Amortization of Patent
Dividen Payable $ 180,000
Dividen Receivable $ 180,000
To Eliminate Reciprocal Dividen Payable and Account Receivable
Allocated to Patent $ 600,000

Downstream
Downstream
Downstream
Downstream
$ 200,000 90% $ 180,000
10% $ 20,000