Question
Amartha Corp acquired 80% of Qoala Corp's outstanding ordinary shares in cash at a price of Rp 320,000,000 on January 1, 2018. At that time,
Amartha Corp acquired 80% of Qoala Corp's outstanding ordinary shares in cash at a price of Rp 320,000,000 on January 1, 2018. At that time, Qoala Corp's equity consisted of Rp 250,000,000 common shares and Rp 150,000,000 retained earnings. The investment cost of Amartha Corp is equal to the book value and fair value obtained. Amartha Corp sells inventory to Qoala Corp as usual, the available data between companies for 2018 is as follows:
Sales to Qoala Corp in 2018
(acquisition price of IDR 15,000,000, selling price of IDR 20,000,000
Unrealized gain in inventory
Qoala Corp as of December 31, 2018 2,000,000
Unrealized gain in inventory
Qoala Corp as of December 31, 2018 3,000,000
Qoala Corp's trade payables to Amartha Corp
As of December 31, 2018 6,000,000
As of December 31, 2018, Amartha Corp's investment account in Qoala Corp had a balance of Rp 390,000,000. This balance consists of 80% equity of Amartha Corp in Qoala Corp of Rp 490,000,000. Net assets as of that date are reduced by Rp 2,000,000 unrealized profit in Qoala Corp's inventory as of December 31, 2018. Qoala Corp's net profit and dividends for the year ended December 31, 2018 Rp 30,000,000 and Rp 12,500,000
Requested:
1. Prepare the required journal entries on the consolidated working papers as of December 31, 2018
2. Amartha Corp's investment balance in Qoala Corp as of December 31, 2018
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