please answer parts 6 and 7, I already have answers to parts 1-5
Goodwill Recognized upon Acquisition: - Purchase cost of 80% PT Sunny shares = S\$9,600,000 - Fair value of NCI=$2,400,000 - Fair value of 100% PT Sunny =$9,600,000+ S$2,400,000=S$12,000,000 - Book value of PT Sunny net assets = (PT Sunny TB assets - liabilities) - Difference between fair value and book value = S $12,000,000 - book value - Goodwill = difference - (inventory fair value increase + equipment fair value increase) Explanation: - Goodwill = difference (S$300,000+S$800,000) Translation of PT Sunny's Trial Balance: Step 2/2 Draff af Tranalation Adi.iatmant. Amortization of Price Differences: Final answer Journal Entries and Posting to "Investment in PT Sunny" Account: - Dividends received: debit Cash IDR 82,272,000 (S\$14,500,000 * 5.650), credit Investment in PT Sunny IDR 82,272,000 - Year-end adjustment: debit Investment in PT Sunny IDR 72,000,000 (translation gain), credit OCITranslation Adjustment IDR 72,000,000 - Final Investment in PT Sunny balance = IDR 65,344,800,000+ IDR 82,272,000 + IDR 72,000,000 - IDR 100,000 - IDR 60,000 = IDR 79,338,800,000 On January 2 2022, PT Putri in Indonesia purchased 80% of the outstanding shares of PT Sunny located in Singapore. The investment cost in Singapore Dollars (S$) is $9,600,000 and the fair value of NonControlling Interest (NCl) is $2,400,000. The difference between the fair value of PT Sunny's net assets and its book value is allocated to inventory and equipment, the respective book values of which are too low by $300,000 and $800,000, while the remainder is recognized as goodwill. Equipment is amortized over 8 years. Trial balance as of 31 December 2021 of PT Putri (in rupiah) and PT Sunny (in Singapore Dollars) is as follows: 1. Calculate the goodwill recognized upon acquisition 2. Create a table for the translation of PT Sunny's trial balance from Singapore Dollars to Rupiah on 31 December 2022. 3. Create a table for "proof of the translation adjustment" 4. Make a Iable for amortization of price differences. 5. Make journal entries in PT Putri's books and post them to the "Investment in PT Sunny" account to get the final balance. 6. Prepare the consolidation journal entries needed to prepare the consolidation working papers as of December 31, 2022. 7. Prepare consolidated working papers as of December 31, 2022. Goodwill Recognized upon Acquisition: - Purchase cost of 80% PT Sunny shares = S\$9,600,000 - Fair value of NCI=$2,400,000 - Fair value of 100% PT Sunny =$9,600,000+ S$2,400,000=S$12,000,000 - Book value of PT Sunny net assets = (PT Sunny TB assets - liabilities) - Difference between fair value and book value = S $12,000,000 - book value - Goodwill = difference - (inventory fair value increase + equipment fair value increase) Explanation: - Goodwill = difference (S$300,000+S$800,000) Translation of PT Sunny's Trial Balance: Step 2/2 Draff af Tranalation Adi.iatmant. Amortization of Price Differences: Final answer Journal Entries and Posting to "Investment in PT Sunny" Account: - Dividends received: debit Cash IDR 82,272,000 (S\$14,500,000 * 5.650), credit Investment in PT Sunny IDR 82,272,000 - Year-end adjustment: debit Investment in PT Sunny IDR 72,000,000 (translation gain), credit OCITranslation Adjustment IDR 72,000,000 - Final Investment in PT Sunny balance = IDR 65,344,800,000+ IDR 82,272,000 + IDR 72,000,000 - IDR 100,000 - IDR 60,000 = IDR 79,338,800,000 On January 2 2022, PT Putri in Indonesia purchased 80% of the outstanding shares of PT Sunny located in Singapore. The investment cost in Singapore Dollars (S$) is $9,600,000 and the fair value of NonControlling Interest (NCl) is $2,400,000. The difference between the fair value of PT Sunny's net assets and its book value is allocated to inventory and equipment, the respective book values of which are too low by $300,000 and $800,000, while the remainder is recognized as goodwill. Equipment is amortized over 8 years. Trial balance as of 31 December 2021 of PT Putri (in rupiah) and PT Sunny (in Singapore Dollars) is as follows: 1. Calculate the goodwill recognized upon acquisition 2. Create a table for the translation of PT Sunny's trial balance from Singapore Dollars to Rupiah on 31 December 2022. 3. Create a table for "proof of the translation adjustment" 4. Make a Iable for amortization of price differences. 5. Make journal entries in PT Putri's books and post them to the "Investment in PT Sunny" account to get the final balance. 6. Prepare the consolidation journal entries needed to prepare the consolidation working papers as of December 31, 2022. 7. Prepare consolidated working papers as of December 31, 2022
