Kuis AKL - UAS Asistensi Kelas Bapak Mahdan Problem 1 On April 1, 2010, PT Pixel acquired 65 percent of the voting

common stock of PT Sejahtera by issuing cash for Rp 304,500,000. The excess of cost over the underlying book value of Sejahteras net assets on that date was assigned to a patent with an estimated remaining life of ten years. On December 31, 2009, PT Sejahtera reported stockholders equity balances of Rp 300,000,000 for common stock and Rp 100,000,000 for retained earnings. Income statement and dividend for PT Sejahtera for the year 2010, were as follows: Jan 1 March 31, 2010 Rp 40,000,000 Rp 10,000,000 April 1 December 31, 2010 Rp 60,000,000 Rp 20,000,000

Net Income Dividends

Required: 1. Give the entry recorded by PT Pixel during 2010 related to its investment in PT Sejahtera. 2. Give the eliminating entries to consolidate the financial statements for both companies in 2010.

Problem 2 On November 1, 2008, Monster Incorporation sold inventory costing $600,000 to a company in Scotland. The negotiated selling price was 500,000 Pounds, receivable on January 30, 2009. On the transaction date, the spot rate for Pounds was 1 Pound = $1.45. To protect itself against a weakening of the pound, Monster Incorporation entered into a forward exchange contract to deliver 500,000 Pounds to a foreign currency broker on January 30, 2009, the settlement date for the sale. The forward exchange rate specified in the contract was 1 Pound = $1.48. Exchange rates on December 31, 2008, and January 30, 2009, were as follows: Spot Rate ($/1 Pound) $ 1.50 $ 1.47 Forward Rate ($/1 Pound) $ 1.49 (30-day)

December 31, 2008 January 30, 2009

Required: Prepare all journal entries for the Monster Incorporation which pertains to the sale and the forward exchange contract. Indicate the date next to each journal entry. Assume a December 31 year-end.

Problem 3 On January 2, 2013, Nagasaki Company in Japan acquired 65% of shares ownership in PT Soetomo, a company in Indonesia, for IDR 299,743,250,-. The excess of acquisition price over book value is allocated to Plant & Equipment with economic value of 10 years. PT Soetomo declared and paid

Kuis AKL - UAS Asistensi Kelas Bapak Mahdan dividend of IDR 5,200,000,- at 1 September 2013. Functional Currency PT Soetomo is Rupiah. The balance of PT Soetomo at 31 December 2008 are as follows: IDR 39,000,000 53,400,000 132,000,000 252,000,000 51,600,000 250,000,000 169,605,000 101,250,000 62,100,000 19,575,000 5,130,000 4,050,000 5,200,000

Cash Account receivable Inventory Plant & Equipment Account payable Capital stock Retained earning Sales COGS Operating expenses Depreciation expense Income tax expense Dividend

Date January 2 September 1 31 December Weighted-Average Required:

Rate 125 130 120 135

1. Determine whether the financial report is disclosed with translation or remeasurement method? Explain why! 2. Calculate the differential from the acquisition and make the amortization schedule for 2008. 3. Make the translation or remeasurement workpaper for the year 2008.

Problem 4 Vignette Corporation established a branch operation in the city of Harbor on January 1, 2011. The balance sheet for Vignette Corporation on December 31, 2010, was as follows:

Kuis AKL - UAS Asistensi Kelas Bapak Mahdan The following transactions occurred during 2011: 1. Vignette Corporation transferred $100,000 of cash and $80,000 of inventory to the new branch. The inventory cost Vignette Corporation $56,000 to produce. 2. The branch purchased $50,000 of inventory from other companies and recorded sales of $200,000 for the period. Cost of goods sold for the period consisted of $40,000 of purchases from outsiders and $60,000 of inventory transferred from the home office. A total of $170,000 was collected on account before year-end. 3. The home office purchased $300,000 of inventory and sold $320,000 of goods to external parties for $460,000. A total of $375,000 was collected on account during 2011. 4. The branch remitted $65,000 to the home office as partial payment for inventory. Vignette declared and paid a dividend of $15,000. 5. The home office recorded depreciation of $35,000 for 2011 and had other operating expenses of $55,000. The branch recorded rent expense of $36,000 for leased facilities and had other operating expenses of $40,000. Required: 1. Present the journal entries that would appear on the books of Vignettes home office and branch for 2011. Include closing entries. 2. Prepare eliminating entries for preparation of annual financial statements for Vignettes Corporation.

Problem 5 On December 31, 2012, PT Asteroid entered into a debt-restructuring agreement with PT Pinus, which was experiencing financial difficulties. PT Pinus restructured a Rp90,000,000 note receivable as follows: Reduced the principal obligation to Rp50,000,000 Forgave all Rp9,000,000 of accrued interest Extended the maturity date from December 31, 2012 to December 31, 2014 Reduced the interest rate from 10 percent to 5 percent Interest was payable annually on December 31, 2013, and 2014. In accordance with the agreement, PT Pinus made payments to PT Asteroid on December 31, 2013 and 2014. Present value factors are as follows: Present value of a single sum, two years at 5 percent 0.90703 Present value of a single sum, two years at 10 percent 0.82645 Present value of ordinary annuity of two years at 5 percent 1.85941 Present value of ordinary annuity of two years at 10 percent 1.73554 Required: Prepare journal entries on PT Cemara for December 31, 2012, December 31, 2013, December 31, 2014, that are related to the restructure debt.