PIRLO CORPORATION AND SUBSIDIARY

CONSOLIDATION WORKING PAPER

FOR THE YEAR ENDED DECEMBER 31, 2011

Adjustment & Eliminations

Description Pirlo 85% Baggio Consolidated Statement
Debit Credit
Income Statement :
Sales 800,000 400,000
Devidend Income 42,500
Gain on Equipment 10,000
Cost of Goods Sold (400,000) (200,000)

Depreciation Expense (110,000) (40,000)

Other Expenses (187,500) (70,000)
Net Income 145,000 100,000
Noncontrolling interest share
Consolidated Net Income
Retained Earnings :
Retained Earnings, Pirlo 605,000
Retained Earnings, Baggio 380,000
Dividends (100,000) (50,000)

Retained Earnings-Dec 31 650,000 430,000

Balance sheet :
Cash 140,000 30,000
Receivables 140,000 60,000
Inventories 150,000 80,000
Other Current Assets 70,000 90,000
Land 50,000 50,000
Building 200,000 200,000
Accumulated depreciation-Buildin (120,000) (50,000)
Equipment 160,000 320,000
Accumulated depreciation-Equip (80,000) (20,000)
Investment in Baggio 510,000
Patent

Total Assets 1,220,000 760,000

Current liabilities 170,000 130,000

Capital stock 400,000 200,000
Retained Earning 650,000 430,000
NCI Equity

Total liabilities + equities 1,220,000 760,000

Pirlo memiliki 85% saham beredar milik Baggio, pada awal 2011 dengan harga perolehan $510,000. Ekuitas Baggio saat itu ter-
diri Modal Saham $200,000 dan Saldo Laba $380,000. Selisih nilai investasi diakui sebagai Paten yang diamortisasi selama 5 tahun.
Pada tanggal 15 Oktoberl 2011 Baggio menjual Peralatan kepada Pirlo dengan harga $110,000. Nilai buku Peralatan $100,000.
Peralatan tersebut dapat digunakan 5 tahun lagi.
Pirlo membeli barang dagang seharga $100,000 dari Baggio, margin 25% dari harga jual. 40% dari barang dagang tersebut
masih belum terjual di akhir tahun 2011.