PT. Jojo acquired an 80 percent stake in PT. Chicko Company on January 1, 2019, for IDR
Question:
PT. Jojo acquired an 80 percent stake in PT. Chicko Company on January 1, 2019, for IDR 136,000, when the share capital of PT. Chicko and retained earnings are IDR 100,000 and IDR 70,000, respectively. At the beginning of 2019, PT. Chicko sold the machine to PT. Jojo for IDR 10,000. The machine was purchased by PT. Chicko costs Rp. 7,000 and has been depreciated by IDR 2,000 when used by PT. Chicko, and has a remaining useful life of five years from the date of sale.
The trial balances of the two companies as of December 31, 2019 and 2020 are as follows (in thousands)
debit | PT. Jojo (IDR) | PT. Chicko (IDR) |
Cash | 50 | 30 |
Other current assets | 130 | 70 |
Factory and equipment | 400 | 200 |
Investment in PT. Chicko | 160 | ---- |
Selling fee | 250 | 130 |
Depreciation expense | 50 | 25 |
Other costs | 60 | 20 |
1100 | 475 | |
Credit | ||
Accumulated depreciation | 150 | 50 |
Obligation | 100 | 50 |
Capital | 300 | 100 |
Saved income | 126 | 70 |
Sale | 400 | 200 |
Profit from factory assets | --- | 5 |
Income from PT. Chicko | 24 | ---- |
1100 | 475 |
Prepare consolidation working papers for PT. Jojo and Subsidiaries for the year ended December 31, 2019
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield