MOJAKOE AKUNTANSI KEUANGAN LANJUTAN

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1 MOJAKOE AKUNTANSI KEUANGAN LANJUTAN Dilarang memperbanyak mojakoe ini tanpa seijin SPA FEUI Mojakoe dapat didownload di FB: SPA FEUI

2 FINAL EXAM SEMESTER GANJIL 2010/2011 MATA KULIAH : ADVANCED FINANCIAL ACCOUNTING DOSEN : TIM DOSEN DAN ASISTEN HARI/TANGGAL : THURSDAY, DEC 21ST 2010 WAKTU : 150 MINUTES SIFAT : CLOSED BOOK Problem 1 (20%) AXIS Inc owns 70% of CENTRO Co. presented below are the companies balance sheet as of December 31, 2010: ACCOUNT AXIS Inc CENTRO Co. Cash 470, ,000 Accounts receivable 300, ,000 Inventory 780, ,000 Land 467, ,000 Building 750, ,000 Accumulated depreciation (330,000) (240,000) Investment in CENTRO Co. 262,500 Total 2,700,000 1,175,000 Accounts payable 120,000 50,000 Bonds payable 900, ,000 Preferred stock, 10 par value, 600, ,000 10% Common stock, 10 par value 450, ,000 Retained earnings 630, ,000 Total 2,700,000 1,175,000 Additional information: - AXIS s preferred stock can be converted to 36,000 shares of common stock, whereas CENTRO s preferred stock are not convertible. - CENTRO s 8% bonds can be converted to 20,000 shares of common stock. On the other hand, AXIS s 10% bonds are not convertible - The average market price of both companies common shares are $60 (AXIS) and $40 (CENTRO) - CENTRO reported 2010 net income of $300,000 and paid $150,000 of cash dividend - Both companies are subject to 30% income tax rate Required: Based on the above information, you are required to calculate Consolidated Basic and Diluted EPS! Problem 2 (40%) Part A (15%) On December , PT Exportir sold inventory to customer in Germany for 50,000 on account in 60 days. Because the payment is denominated in euro, PT Exportir immediately entered into forward

3 contract for the same amount and the same period. The spot and forward rate are as follows: (IDR/1 EURO): Spot rate Forward rate Remarks December 1, ,100 12, days December 31, ,250 12, days February 1, ,150 Required: Prepare all journal entries that should be recorded at PT Exportir s book, related to all spot and forward transactions in 2009 and Part B (25%) On January 1, 2010 Eagle Company acquired all of the outstanding stock of Viking Inc, a Norwegian company at a cost of $151,200. Viking s net asset on the date of acquisition were 700,000 kroner (Nkr). On January 1, 2010, the book and fair values of Norwegian subsidiary s identifiable asset and liabilities approximated their fair values except for property, plant, and equipment and patents acquired. The fair value of Viking s property plant and equipment exceeded its book value by $18,000. The remaining useful life of Viking s equipment at January 1, 2010 was 10 years. The remainder of the differential was attributable to patent having an estimated useful life for 5 years. The kroner is functional currency and that Eagle uses the basic equity method for accounting for its investment in Viking. Viking s trial balance on dec 31, 2010 in kroner, follows: Cash Account receivable (net) Inventory PPE Acc depreciation Account payable Common stock Retained earning Sales COGS Operating expenses Depreciation expenses Dividend paid 150,000 dr 200,000 dr 270,000 dr 600,000 dr 150,000 cr 90,000 cr 450,000 cr 250,000 cr 690,000 cr 410,000 dr 100,000 dr 50,000 dr 40,000 dr Additional information: 1. Viking uses FIFO method for its inventory. The beginning inventory was acquired on dec 31, 2009 and ending inventory was acquired in dec 15,2010. Purchases Nkr 420,000 were made evenly throughout Viking acquired all of its property plant and equipment on july 1, 2008 and uses straight line method depreciation. 3. Viking s sales were made evenly throughout 2010, and its operating expenses were incurred evenly throughout The dividends were declared and paid on july 1, Eagle s income from its own operations was $275,000, and its total shareholders equity on January 1, 2010 was $3,500,000. Eagle declared $100,000 of dividends in Exchange rates were as follows: July 1, 2008 Nkr 1= $.15

4 December 31, 2009 Nkr 1= $.18 January 1, 2010 Nkr 1=$.18 July 1, 2010 Nkr 1= $.19 December 15, 2010 Nkr 1=$.205 December 31, 2010 Nkr 1=$.21 Average for 2010 Nkr 1= $.20 Required: 1. Prepare a schedule translating the trial balance of Viking into its reporting currency 2. Prepare all journal entries related to Eagle s investment in Viking Inc, during Provide necessary calculations and schedules supporting the amounts in the journal entries, including a schedule of the translation adjustment related to the differential Problem 3 (20%) Orangutan Company is located in Jakarta. Its balance sheet accounts at the beginning of the year are as follows: Cash Rp 20,000,000 Account receivable 25,000,000 Inventory 41,000,000 Land 52,000,000 Buildings and equipment 90,000,000 Accumulated depreciation Rp 21,000,000 Accounts payable 18,000,000 Notes payable 30,000,000 Common stock 100,000,000 Retained earning 59,000,000 Total Rp 228,000,000 Rp 228,000,000 At the beginning of the year, the company establishes branches in Bandung. The company uses a perpetual inventory system. Branch fixed assets are recorded by branch. The following transactions occur during the year: 1. The Orangutan Company as the home office purchases equipment on account for Rp40,000,000 and immediately transfers half of inventory to Bandung branch at cost. 2. The home office transfer cash of Rp 3,000,000 to Bandung branch 3. The company sells inventory to unrelated parties at a 40% gross profit and transfer inventory to its branch at 20% gross profit. During the year, the home office has sales of Rp175,000,000 to unrelated parties and transfer inventory to the Bandung branch at a Rp 140,000,000 price. 4. The branch sell their inventory, all acquired from the home office, at a 25% gross profit. During the year, the Bandung branch has sales of Rp136,000, Operating expenses incurred during the year, excluding the cost of goods sold and depreciation, total Rp 85,000,000 for the home office, Rp13,000,000 for the Bandung branch. 6. Selected balance sheet accounts at the end of the year as follows: Home office Branch office Account receivable Rp 28,000,000 Rp 11,000,000 Inventory 45,000,000 38,000,000 Accounts payable 20,000,000 1,000,000 Notes payable 30,000,000 35,000,000 Accumulated depreciation 28,000,000 4,000,000

5 7. During the year, the Bandung branch transfers Rp135,000,000 of cash to home office. Required: 1. Record the transactions for the year on the books of home office and the Bandung branch 2. Prepare closing entries 3. Prepare eliminating entries Problem 4 (20%) Bank Kreditor granted loan to PT Debitor on dec 31, 2007 amounting to USD 2,000,000. The stated interest rate is 10%. The interest payment date is December 31. This loan will due in 5 years. The original effective interest rate was 12%. Approaching the end of 2010, management of Bank Kreditor acknowledge that PT Debitor is experiencing a financial difficulty and having a severe cashflow problem. Bank Kreditor expects it will not be able to collect interest due this year, as well as next year. However, Bank Kreditor estimates that PT Debitor will be able to recover from its problem in 2012, and expects to recover USD 1,500,000 of the principal and the contractual interest due on December 31, Periods 10% 12% PV factor of ordinary annuity Periods 10% 12% Required: 1. Prepare journal entry for Bank Kreditor as of Dec 31, Prepare journal entry for Bank Kreditor as of Dec 31, Prepare journal entry for Bank Kreditor as of Dec 31, 2012 Problem 1 Basic EPS AXIS income from operation CENTRO net income Preferred dividends (250,000 x 10%) (25.000) Earnings available CENTRO shares outstanding (250,000/10) Computed EPS for CENTRO 11,00 Shares held by AXIS (70% x 25,000) Contribution to AXIS earnings AXIS total earnings Preferred dividends (600,000 x 10%) (60.000) Earnings available to AXIS shareholders AXIS shares outstanding (450,000/10) Basic EPS 22,94 Diluted EPS

6 AXIS income from operation CENTRO net income Preferred dividends (250,000 x 10%) (25.000) Assumed conversion of bonds (500,000 x 8% x 0.7) Earnings available CENTRO shares outstanding (250,000/10) Assumed conversion of bonds Total shares Computed EPS for CENTRO 6,73 Shares held by AXIS (70% x 25,000) Contribution to AXIS earnings Earnings available to AXIS shareholders AXIS shares outstanding (450,000/10) Assumed conversion of preferred shares Total shares outstanding Diluted EPS 12,57 Problem 2 a. Journal entries: Spot Rate Forward Rate Remarks December (60 days) December (30 days) February /12 AR (fc) Sales No Entry 31/12 AR (fc) FC Gain Finacial Asset (fc) FC Gain ½ Finacial Asset (fc) FC Gain FC Loss AR (fc)

7 FC Unit (fc) AR (fc) Cash Financial Asset (Fc) FC Unit (fc) b. trial balance translation a. Viking Inc. Trial Balance Translation December 31, 2010 Balance Exchange Balance Item Kroner Rate Dollars Cash NKr 150, $ 31,500 Accounts Receivable (net) 200, ,000 Inventory 270, ,700 Property, Plant, and Equipment 600, ,000 Cost of Goods Sold 410, ,000 Operating Expenses 100, ,000 Depreciation Expense 50, ,000 Dividends Paid 40, ,600 Total Debits NKr 1,820,000 $375,800 Accumulated Depreciation NKr 150, $ 31,500 Accounts Payable 90, ,900 Notes Payable 190, ,900 Common Stock 450, ,000 Retained Earnings 250, ,000 Sales 690, ,000 Total NKr 1,820,000 $354,300 Accumulated Other Comprehensive Income Translation Adjustment (credit) 21,500 Total Credits $375,800

8 b. Entries for 2010: January 1 Investment in Viking Company 151,200 Common Cash 151,200 Purchase of Viking Inc. July 1 Cash 7,600 Investment in Viking Company Common Dividend received from foreign subsidiary: $7,600 = NKr40,000 x $.19 7,600 December 31 Investment in Viking Company 26,000 Common Income from Subsidiary 26,000 Equity in net income of foreign subsidiary: $26,000 = Income of NKr130,000 x $.20 Investment in Viking Company 21,500 Common Other Comprehensive Income Translation Adjustment 21,500 Parent's share of translation adjustment from translation of subsidiary's accounts: $21,500 x 1.00 Income from Subsidiary 3,600 Investment in Viking Company Common Amortization of differential: Property, plant, and equipment $2,000 Patent 1,600 Total see supporting schedule 2 $3,600 3,600 Investment in Viking Company 4,020 Common Other Comprehensive Income Translation Adjustment 4,020 Translation adjustment applicable to the differential: Property, plant, and equipment $2,900 Patent 1,120 Total see supporting schedule 2 $4,020

9 s Schedule 1: Determining the differential for 2010: Investment cost at January 1, 2010 $ 151,200 Less: Book value of net assets acquired on January 1, 2010 (NKr700,000 x $.18) (126,000) Differential $ 25,200 Differential allocated to: Property, plant, and equipment $ 18,000 Patent 7,200 Total $ 25,200 Schedule 2: Determining the differential amortization for 2010: Norwegian Translation U.S. Kroner Rate Dollars Property, plant, and equipment: Income statement: Difference at beginning of year NKr 100, $18,000 Amortization for 2010 (NKr100,000 / 10 years) (10,000).20 (2,000) Remaining balances NKr 90,000 $16,000 Balance sheet: Remaining balance on December 31, 2010, translated at year-end exchange rate NKr 90, ,900 Difference to other comprehensive income translation adjustment $ 2,900 Patent: Income statement: Difference at beginning of year NKr 40, $ 7,200 Amortization for 2010 (NKr40,000 / 5 years) (8,000).20 (1,600) Remaining balances NKr 32,000 $ 5,600 Balance sheet: Remaining balance on December 31, 2010, translated at year-end exchange rate NKr 32, ,720 Difference to other comprehensive income translation adjustment $ 1,120 Note that the property, plant, and equipment portion of the differential must be increased from $16,000 to $19,000, requiring a debit of $2,900 to the investment account. The portion of the differential attributable to patent must be increased from $5,600 to $6,720, requiring a debit of $1,120 to the investment account. The corresponding credit is to the Other Comprehensive Income Translation Adjustment account ($4,020 = $2,900 + $1,120).

10 Problem 3 1. journal entries for the year in HO and Branch: Home office Equipment A/P (purchase of equipment from unrelated) Investment - Bandung branch (Transfer of equipment to branches) Equipment Investment - Bandung branch (Transfer of cash to branches) Cash Cash sales COGS Inventory (Inventory sales to unrelated parties) Investment - Bandung branch Inventory Unrealized intracompany profi (Inventory trasfer to branches) Unrealized intracompany profit-bandung branch Realized intracompany profit Operating expense Cash (A/P) Investment - Bandung branch Apportioment of expenses Operating expense Cash Investement - Bandung branch Received cash from branch

11 Bandung Branch Equipment Home Office Cash Home Office Inventory-from HO Home Office Cash Sales COGS Inventory-from HO Inventory sold to outside is 0,777 (rounded = 78 % Operating expense Home Office Home office Cash closing entries home office: Inventment - Bandung Branch Branch Income - Bandung Branch Sales Branch Income - Bandung Branch Realized intracompany profit COGS Operating expense Income summary

12 Income summary retained earnings Branch office: Sales Expenses: COGS Op. expense Branch's Net income Sales COGS Operating expense Income summary Income Summary Home Office eliminating entries: home office: Branch income - Bandung branch Home office -pre closing balance Investment - Bandung branch Realized intracompany profit COGS Unrealized intracompany profit Inventory from Home Office ( E4 ) Inventory Inventory from HO Problem 4 31-Des Des , , Des , , Des , , Des , , ,76

13 31-Des , , ,73 carrying value Dec 31, expected cashflow as of dec 31, , , difference (impairment loss) Des-10 dr.impairment loss cr. Loans & receivable Des-11 dr. loans & receivables ,76 cr.interest income , Des-12 dr.loans&receivable ,97 cr interest income ,97 dr.cash cr.loans&receivable