Bonds Affiliate Purchased From A Non Affiliate

January 1, 20X3: Sold bonds

for $95,000
Plug (Parent) Lemon (Non
Spark (Subsidary) Affiliate)

December 31, 20X5: Plug purchased the Bonds for $102,800

Spark's bonds payable sold to nonaffiliate at 1 Jan 20X3

Face Value of Bonds 100,000
Stated rate 9%
Annual years 10
Market rate 9.807%

Investment in Spark bonds (after Plug purchased it on 31 Dec 20X5)

Face Value of Bonds 100,000
Stated rate 9%
Annual years 10
Market rate 8.454%

a) Prepare the journal entry made by Plug in 20X6 to record its interest income on the Spark bonds that i
Cash 9,000
Investment in Spark Company Bonds 309
Interest Income 8,691

b) Prepare the consolidation entry to remove the effects of the intercorporate bond ownership in completi
Bond Payable 100,000
Loss on Bond Retirement 6,754
 Investment in Spark Company Bonds 102,800
Discount on Bond Payable 3,954

c) Consolidated net income and income in the controlling interest

20X5 20X6
Operating income reported by Plug 120,000 150,000
Net income reported by Spark 60,000 80,000
Loss on bond retirement (6,754)
Adjustment for excess of interest expense 729
($9,419) over interest income ($8,691)
Consolidated net income 173,246 230,729
Income to noncontrolling interest:
($60,000 - $6,754) x 0.15 (7,987)
($80,000 + $728) x 0.15 (12,109)
Income to controlling interest 165,259 218,619
 Bond Amortization Schedule
Interest Amortization of
PMT # Date Interest $PMT
Expense Discount (Premium)
01/01/20X3
1 31/12/20X3 9,000.00 9,316.64 316.64
2 31/12/20X4 9,000.00 9,347.70 347.70
3 31/12/20X5 9,000.00 9,381.79 381.79
4 31/12/20X6 9,000.00 9,419.24 419.24
5 31/12/20X7 9,000.00 9,460.35 460.35
6 31/12/20X8 9,000.00 9,505.50 505.50
7 31/12/20X9 9,000.00 9,555.07 555.07
8 12/31/2010 9,000.00 9,609.51 609.51
9 12/31/2011 9,000.00 9,669.28 669.28
10 12/31/2012 9,000.00 9,734.92 734.92
90,000.00 95,000.00 5,000.00

Bond Amortization Schedule

Amortization of
PMT # Date Interest $PMT Interest Income
Discount (Premium)
31/12/20X5
1 31/12/20X6 9,000.00 8,690.53 (309.47)
2 31/12/20X7 9,000.00 8,664.37 (335.63)
3 31/12/20X8 9,000.00 8,635.99 (364.01)
4 31/12/20X9 9,000.00 8,605.22 (394.78)
5 12/31/2010 9,000.00 8,571.85 (428.15)
6 12/31/2011 9,000.00 8,535.65 (464.35)
7 12/31/2012 9,000.00 8,496.40 (503.60)
63,000.00 60,200.00 (2,800.00)

the Spark bonds that it holds

ownership in completing a three-part consolidation worksheet at December 31, 20X5

31/12/20X5
BV of Bonds 96,046
Redemption 102,800
Loss on Bond Retirement (6,754)

20X6
Amortization of discount on Bond Payable (Spark)
Amortization of premium on Bond Investment (ABC)
Bond retirement recognition
n Schedule
Premium
Bond Payable BV of Bonds Period Cashflow
(Discount)
(5,000.00) 100,000.00 95,000.00 0 (95,000.00)
(4,683.36) 100,000.00 95,316.64 1 9,000.00
(4,335.66) 100,000.00 95,664.34 2 9,000.00
(3,953.87) 100,000.00 96,046.13 3 9,000.00
(3,534.63) 100,000.00 96,465.37 4 9,000.00
(3,074.28) 100,000.00 96,925.72 5 9,000.00
(2,568.78) 100,000.00 97,431.22 6 9,000.00
(2,013.71) 100,000.00 97,986.29 7 9,000.00
(1,404.20) 100,000.00 98,595.80 8 9,000.00
(734.92) 100,000.00 99,265.08 9 9,000.00
(0.00) 100,000.00 100,000.00 10 109,000.00
Rate 9.807%

n Schedule
Premium
Bond Payable BV of Bonds Period Cashflow
(Discount)
2,800.00 100,000.00 102,800.00 0 (102,800.00)
2,490.53 100,000.00 102,490.53 1 9,000.00
2,154.90 100,000.00 102,154.90 2 9,000.00
1,790.89 100,000.00 101,790.89 3 9,000.00
1,396.11 100,000.00 101,396.11 4 9,000.00
967.95 100,000.00 100,967.95 5 9,000.00
503.60 100,000.00 100,503.60 6 9,000.00
0.00 100,000.00 100,000.00 7 109,000.00
Rate 8.454%
 419
(309)
729
SOAL 2
Diketahui:

Direct Intercompany Debt Transfer

December 31, 20X3: Sold bonds for

$107,000
Patio (Parent) Stone (Subsidary)

Kepemilikan Saham di Container 60%

Tanggal jual obligasi 01-Jan-11
Nilai Par Obligasi 100,000
Tingkat Bunga 9.0% >> 4.5%
Tenor 10 tahun 20
Pembayaran Bunga Semesteran
Yield to Maturity 9.0% >> 4.5%
Tanggal pembelian obligasi oleh Parent 31-Dec-13
Nilai pembelian 107,000 3.84%
Suku Bunga Efektif Parent tahunan Amazing 7.7% >> 3.8%
Informasi trial balance Bennet dan Container per 31 Desember 20X4 adaah sebagai berikut
Bennet Corporation Container Limited
Accounts
Debit ($) Credit ($) Debit ($) Credit ($)
Cash
Cash 61,600 20,000 Date
Received
Accounts Receivable 100,000 80,000 31-Dec-13
Inventory 120,000 110,000 30-Jun-14 $4,500
Other Assets 340,000 250,000 31-Dec-14 $4,500
Investment in Container Bonds 106,212 30-Jun-15 $4,500
Investment in Container Stock 122,273 31-Dec-15 $4,500
Interest Expense 20,000 18,000 30-Jun-16 $4,500
Other Expense 368,600 182,000 31-Dec-16 $4,500
Dividends Declared 40,000 10,000 30-Jun-17 $4,500
Accounts Payable 80,000 50,000 31-Dec-17 $4,500
Bonds Payable 200,000 200,000 30-Jun-18 $4,500
Common Stock 300,000 100,000 31-Dec-18 $4,500
Retained Earnings 210,000 70,000 30-Jun-19 $4,500
Sales 450,000 250,000 31-Dec-19 $4,500
Interest Income 8,212 30-Jun-20 $4,500
Income from Container 30,473 31-Dec-20 $4,500
Total 1,278,685 1,278,685 670,000 670,000

JAWABAN
Hitung constructive gain/loss on bond retirement 2013
Carrying Amount of Bonds at 31 Des 2013 100,000
Proceeds from Parents 107,000
Constructive Loss on Bond Retired (7,000)
Jurnal yang ekuitas dibuat oleh Amazing pada 20X4
Buatlah Tabel Perhitungan Obligasi yang Dibuat Bennet Carrying Remaining
Cash Interest Amort
Date Amounts of Unamortized
Received Income Premium
31-Dec-13 Bonds
$107,000 Premium
$7,000
30-Jun-14 $4,500 4,113 387 $106,613 $6,613
31-Dec-14 $4,500 4,098 402 $106,212 $6,212
Langkah II: Hitung Reversal Constructive Gain (Loss)
Amortisasi Premium di Bennet selama 2014 788 [A] ===> Real 20X4, Accrued 20X4
Amortisasi Discount di Container selama 2014 - [B] ===> Real 20X4, Accrued 20X4
Constructive Reversal Gain on Bond Retired for 2014 788 [A] - [B]
Jurnal I: Pengakuan Informasi Laba Original Container
Investasi in Container Stock 30,000
Income from Container 30,000
Jurnal II: Pengakuan Porsi Dividen
Cash/Bank 6,000
Investasi in Container Stock 6,000
Jurnal III: Pengakuan Porsi Reversal Constructiv Loss
Investasi in Container Stock 473
Income from Container 473
[60% x reversal loss]
Jurnal IV: Pengakuan Pendapatan bunga Juni 20X4
Cash 4,500
Investment in Container Bond 387
Interest Income 4,098
Jurnal V: Pengakuan Pendapatan bunga Desember 20X4
Cash 4,500
Investment in Container Bond 402
Interest Income 4,098
Jurnal Eliminasi selama 2014
Jurnal Eliminasi 1: Akun Investasi dan Ekuitas Anak
NCI Bennet Container Equity
40% 60% = Share Capital R/E
Original Book Value as of January 1, 2014 68,000 102,000 100,000 70,000
Add: Net Income original for 2014 20,000 30,000 50,000
Less: Dividend Declared for 2014 (4,000) (6,000) (10,000)
Ending Book Value December 31, 2014 84,000 126,000 = 100,000 110,000
Adjustment items:
Constructive Reversal Loss of Bonds Retirements 315 473 788
Adjusted Book Value December 31, 2014 84,315 126,473 = 100,000 110,788
Jurnal Dasar Eliminasi
Share Capital 100,000
Retained Earnings as of January 1 70,000
Income from Container 30,473 60% NI XYZ + 40% rev.loss
NCI in P/L 20,315 40% NI XYZ + 40% rev loss
Dividends Declared 10,000
Investment in Container Stock 126,473 ending BV + 60% rev. loss
 NCI in B/S. 84,315 ending NCI + 60% rev. loss
Jurnal 2: Eliminasi Akun Bonds Payable
Bonds Payable 100,000 Bonds Par (Perhatikan jika bonds redemeed tidak 100%)
Interest Income 8,212 Interest income selama 2014 di tabel Pihak Berelasi yang Beli
Investment in Container Stock 4,200 %Ownership of Constructive Loss of Bond Retired - Beginning
NCI in B/S. 2,800 %NCI of Constructive Loss of Bond Retired - Beginning
Investment in Container Bond $106,212 Carrying Amount as of 31 Des 2014 di Buku Pihak Berelasi yang Beli
Bond Discount - Unamortized Discount as of 31 Des 2014 di buku penerbit (Perhatikan jika bonds redemeed tidak 100%)
Interest Expenses 9,000 Interest income selama 2014 di tabel penerbit (Perhatikan jika bonds redemeed tidak 100%)
a. Worksheet Consolidation
Elimination Entries
Bennet Container Consolidated
DR CR
Income Statement
Sales 450,000 250,000 700,000
Less: Interest Expense (20,000) (18,000) 9,000 (29,000)
Less: Other Expenses (368,600) (182,000) (550,600)
Interest Income 8,212 - 8,212 0
Income from Sub 30,473 - 30,473 (0)
Consolidated Net Income 100,085 50,000 38,685 9,000 120,400
NCI in Net Income 20,315 (20,315)
Controlling Interest in Net Incom 100,085 50,000 59,000 9,000 100,085

Statement of Retained Earnings

Beginning Balance 210,000 70,000 70,000 210,000
Net Income 100,085 50,000 59,000 9,000 100,085
Less: Dividends Declared (40,000) (10,000) 10,000 (40,000)
Ending Balance 270,085 110,000 129,000 19,000 270,085

Balance Sheet
Cash 61,600 20,000 81,600
Accounts Receivable 100,000 80,000 180,000
Inventory 120,000 110,000 230,000
Other Assets 340,000 250,000 590,000
Investment in Container Bonds 106,212 - 106,212 0
Investment in Container Stock 122,273 - 4,200 126,473 (0)

Total Assets 850,085 460,000 4,200 232,685 1,081,600

Accounts Payable 80,000 50,000 130,000
Bonds Payable 200,000 200,000 100,000 300,000
Common Stock 300,000 100,000 100,000 300,000
Retained Earnings 270,085 110,000 129,000 19,000 270,085
NCI in NA 2,800 84,315 81,515
Total Liabilities & Equity 850,085 460,000 331,800 103,315 1,081,600
- - -

b. Consolidation Balance Sheet, Income Statement, and Retained Earnings Statement for 20X4

Patio Corporation and Subsidiary

Consolidated Balance Sheet
December 31, 20X4

Cash 81,600
Accounts Receivable 180,000
Inventory 230,000
Total Current Assets 491,600
Other Assets 590,000
Total Asset 1,081,600

Accounts Payable 130,000

Bonds Payable 300,000
Stockholders' Equity:
Controlling Interest:
Common Stock 300,000
Retained Earnings 270,085
Total Controlling Interest 570,085
Noncontrolling Interest 81,515
Total Stockholders' Equity 651,600
Total Liability and Stockholders' Equity 1,081,600

Patio Corporation and Subsidiary

Consolidated Income Statement
December 31, 20X4

Sales 700,000
Interest Expense (29,000)
Other Expenses (550,600)
Total Expenses (579,600)
Consolidated Net Income 120,400
Income to Noncontrolling Interest (20,315)
Income to Controlling Interest 100,085

Patio Corporation and Subsidiary

Consolidated Statement of Retained Earnings
December 31, 20X4

Retained Earnings, January 1, 20X4 210,000

Income to Controlling Interest, 20X4 100,085
310,085
Dividends Declared, 20X4 (40,000)
Retained Earnings, December 31, 20X4 270,085
 Remaining
Amort Carrying Amounts
Interest Income Unamortized
Premium of Bonds
$107,000 Premium
$7,000
4,113 387 $106,613 $6,613
4,098 402 $106,212 $6,212
4,083 417 $105,794 $5,794
4,067 433 $105,361 $5,361
4,050 450 $104,912 $4,912
4,033 467 $104,444 $4,444
4,015 485 $103,959 $3,959
3,996 504 $103,456 $3,456
3,977 523 $102,933 $2,933
3,957 543 $102,390 $2,390
3,936 564 $101,826 $1,826
3,914 586 $101,240 $1,240
3,892 608 $100,632 $632
3,868 632 $100,000 $0
00%)