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    Akuntansi Keuangan Lanjutan 1

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    Salsa Bila
    Marshall Company acquired Tucker Company on January 1, 2018 by issuing $200,000 in long-term liabilities and 20,000 shares of common stock. Marshall recorded the acquisition as a bargain purchase, where the fair value of Tucker's net assets exceeded the consideration transferred. Marshall prepared journal entries to record the acquisition and consolidation, and provided a worksheet to consolidate the balance sheets of the two companies, resulting in total assets of $2,225,000 and total liabilities and equity of $2,225,000 as of January 1, 2018.

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    Akuntansi Keuangan Lanjutan 1

    Uploaded by

    Salsa Bila
    160 views4 pages
    Marshall Company acquired Tucker Company on January 1, 2018 by issuing $200,000 in long-term liabilities and 20,000 shares of common stock. Marshall recorded the acquisition as a bargain purchase, where the fair value of Tucker's net assets exceeded the consideration transferred. Marshall prepared journal entries to record the acquisition and consolidation, and provided a worksheet to consolidate the balance sheets of the two companies, resulting in total assets of $2,225,000 and total liabilities and equity of $2,225,000 as of January 1, 2018.

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    Marshall Company acquired Tucker Company on January 1, 2018 by issuing $200,000 in long-term liabilities and 20,000 shares of common stock. Marshall recorded the acquisition as a bargain purchase, where the fair value of Tucker's net assets exceeded the consideration transferred. Marshall prepared journal entries to record the acquisition and consolidation, and provided a worksheet to consolidate the balance sheets of the two companies, resulting in total assets of $2,225,000 and total liabilities and equity of $2,225,000 as of January 1, 2018.

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    160 views4 pages

    Akuntansi Keuangan Lanjutan 1

    Uploaded by

    Salsa Bila
    Marshall Company acquired Tucker Company on January 1, 2018 by issuing $200,000 in long-term liabilities and 20,000 shares of common stock. Marshall recorded the acquisition as a bargain purchase, where the fair value of Tucker's net assets exceeded the consideration transferred. Marshall prepared journal entries to record the acquisition and consolidation, and provided a worksheet to consolidate the balance sheets of the two companies, resulting in total assets of $2,225,000 and total liabilities and equity of $2,225,000 as of January 1, 2018.

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    of 4

    AKUNTANSI KEUANGAN LANJUTAN 1

    SOAL

    On January 1, 2018, Marshall Company acquired 100 percent of the outstanding common stock
    of Tucker Company. To acquire these shares, Marshall issued $200,000 in long-term liabilities
    and 20,000 shares of common stock having a par value of $1 per share but a fair value of $10
    per share. Marshall paid $30,000 to accountants, lawyers, and brokers for assistance in the
    acquisition and another $12,000 in connection with stock issuance costs. Prior to these tran-
    sactions, the book value of the balance sheets for the two companies were as follows: ($)

    Marshall Co. Tucker Co.


    Cash 60.000 20.000
    Receivables 270.000 90.000
    Inventory 360.000 140.000
    Land 200 180.000
    Buildings (net) 420.000 220.000
    Equipment (net) 160.000 50.000

    Accounts payable -150.000 -40.000


    Long-term liabilities -430.000 -200.000
    Common stock—$1 par value -110.000
    Common stock—$20 par value -120.000
    Additional paid-in capital -360.000 –0–
    Retained earnings, 1/1/18 -420.000 -340.000

    Note: Parentheses indicate a credit balance.


    In Marshall’s appraisal of Tucker, it deemed three accounts to be undervalued on the subsidi-
    ary’s books: Inventory by $5,000, Land by $20,000, and Buildings by $30,000. Marshall plans
    to
    maintain Tucker’s separate legal identity and to operate Tucker as a wholly owned subsidiary.
    a. Determine the amounts that Marshall Company would report in its postacquisition balance
    sheet. In preparing the postacquisition balance sheet, any required adjustments to income
    accounts from the acquisition should be closed to Marshall’s retained earnings. Other
    accounts will also need to be added or adjusted to reflect the journal entries Marshall
    prepared in recording the acquisition.
    b. To verify the answers found in part (a), prepare a worksheet to consolidate the balance
    sheets of these two companies as of January 1, 2018.

    JAWABAN
    a.

    Marshall’s acquisition of Tucker represents a bargain purchase because the fair value of the
    net assets acquired exceeds the fair value of the consideration transferred as follows :
    Fair value of net assets acquired $ 515.000
    Fair value of consideration transferred 400.000
    Gain on bargain purchase $ 115.000

    In a bargain purchase, the acquisition is recorded at the fair value of the net assets acquired
    instead of the fair value of the consideration transferred (an exception to the general rule)

    Prior to preparing a consolidation worksheet, Marshall records the three transactions that
    occured to create the bussiness combination

    Investment in Tucker.....................................................515.000
    Long-term Liabilities........................................................................200.000
    Common Stock (par value).................................................................20.000
    Additional Paid-in Capital...............................................................180.000
    Gain on Bargain Purchase................................................................115.000
    (To record liabilities and stock issued for Tucker acquisition fair value)

    Professional services expense...........................................30.000


    Cash.....................................................................................................30.000
    (To record payment of professional fees)

    Additional Paid-in capital..................................................12.000


    Cash.................................................................................................12.000
    Marshall’s trial balance is adjusted for these transactions..............12.000
    (as shown in the worksheet that follow)
    The $400.000 fair value of the investment is allocated:
    Consideration transferred at fair value $ 400.000
    Book value (assets minus liabilities or total stockholders equity) 460.000
    Book value in excess of consideration transferred ( 60.000 )

    Allocation to specific accounts based on fair value :


    Inventory 5.000
    Land 20.000
    Buildings 30.000 55.000
    Gain on bargain purchase (excess net asset fair value)
    Over consideration transferred $ (115.000)

    Consolidated Totals
    Cash = $80.000
    Receivables = $360.000
    Inventory = $505.000
    Land = $400.000
    Buildings = $670.000
    Equipment =$210.000
    Total assets = $2.225.000
    Account Payable = $190.000
    Long-term liabilities = $730.000
    Common Stock = $120.000
    Additional paid-in capital = $360.000
    Retained earnings = $420.000
    Total liabilities and equity = $2.225.000
    b.
    MARSHALL COMPANY AND CONSOLIDATED SUBSDIARY
    Worksheet
    Accounts Marshall Tucker Consolidation Entries Consolidated

    Co Co Co Credit Total
    Cash 60.000 20.000 80.000

    Receivables 270.000 90.000 360.000

    Inventory 360.000 140.000 5.000 505.000

    Land 200.000 180.000 20.000 400.000

    Buildings(net) 420.000 220.000 30.000 670.000

    Equipment(net) 160.000 50.000 210.000

    Investment in Tucker (S) 460.000

    55.000 -0-

    Total Assets 1.985.000 700.000 2.225.000

    Account payable (150.000) (40.000) (190.000)

    Long-Term Liabilities (430.000) (200.000) (730.000)

    Common Stock-$1 par (110.000)


    value
    Common Stock-$20par (120.000) (S) 120.000 (120.000)
    value
    Additional paid-in capital (360.000) (360.000)

    Retained earnings, 1/1/18 (420.000) (340.000) (S) 340.000 (420.000)

    Total Liabilities and (1.470.000) (700.000) 515.000 515.000 (1.820.000)


    owner equities
    Januari 1, 2018
    Mashall’s accounts have been adjusted for acquisition entries (see part A).

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