UNIVERSITAS INDONESIAFAKULTAS EKONOMIDEPARTEMEN AKUNTANSI

KUIS PARALELAKUNTANSI KEUANGAN 2KAMIS, 28 MARET 2013

PROBLEM 1 (NON CURRENT LIABILITIES)Presented below is the transaction between Bruno Corp and Gregory Corp :1. Dec 31, 2010 Bruno Corp invest in Gregory Corp 3 year note, 10%, in the amount of $330,000. The interest is paid anually on December 31. Market rate 12%.2. Dec 31,2011 Interest on the bonds is paid.3. Dec 31,2012 Gregory Corp is in trouble, Bruno Corp agrees to forgive the accrued interest, $30,000 of the principle, and to extend the maturity date to December 31,2014. Bruno also agree to reduce the interest into 8%.4. Dec 31,2014 Gregory is facing another financial problem and decided to give their machine as the settlement of the debt. The machine has a book value $700,000 and accumulated depreciation $500,000. The fair value of the machine on the date of settlement is $250,000. (Note:Bruno forgive the accrued interest in 2014).

Instruction:1. Prepare the amortization schedule of the bonds2. Prepare the journal entries for the transaction above on the books of Bruno Corp and Gregory Corp

PROBLEM 2 (EQUITY)Western Company produces stage and sound system for festival. Most of its revenues come from major firm in industry. The balance of its shareholders equity section on the statement of financial position as of July 1,2012 is as follow:Preference share 10%, non-cumulative, par $100 (2,000 shares issued, 5,000 shares authorized)200,000

Share Premium-Preference share60,000

Ordinary share, par $33 (25,000 shares outstanding, 27,000 shares issued, 50,000 shares authorized)691,000

Share Premium-Ordinary Share378,000

Retained Earnings550,000

Treasury Share (2,000 shares, at cost)(80,000)

Related transactions during the last semester of 2012:July5Issued 6,000 shares ordinary share at $42

July20Purchased 1,500 shares of its own ordinary share at cost

Aug10Declared cash dividends for a total $55,000 on both preference share and ordinary share outstanding recorded on Aug 24

Aug24Recorded the names of the shareholders for dividend calculation

Sep1Paid the cash dividends declared on Aug 10

Sep9Sold 1,000 shares of treasury shares at $37

Sep21Issued 750 shares of preference share at $105

Oct15Sold 2,500 shares of treasury share at $42

Oct 30Issued 7,500 ordinary shares and 1,000 preference shares for a lump sum $400,000 The fair value for ordinary shares is $38, and the preference shares is unknown.

Nov11Declared 5% share dividend on ordinary share outstanding,capitalized at $45

Dec2Issued the share dividend declared on Nov 11

Dec13Declared a share split of 1:3 for ordinary share

Dec31The company recorded a net income of $125,000 for the last semester of 2005

Instruction :1. Prepare the journal entries for the above transactions and a memorandum note, if needed.2. Construct the equity section for the above information.

PROBLEM 3 (DILUTIVE SECURITIES & EPS)Part 1Kwang Co.Financial Position StatementEquity SectionAs of Jan 1 2012

Share capital Ordinary, $10 par value, authorized 1.000.000 shares. 300.000 shares issued and outstanding$3.000.000

Share premium Ordinary$600.000

Retained Earnings$570.000

The following transactions occur during the current year:1. Kwang Co. issues to the shareholders 100.000 rights. Ten rights are needed to buy one share at $32. The rights are void after 30 days. The market price of the shares at this time is $34 per share2. Kwang Co.sells to the public $200.000, 10% bonds issue at 104. The company also issues with each $100 bond one detachable warrant, which provides for the purchase of ordinary shares at $30 per share. The net present value of the bonds without the warrants is $192.0003. All but 5.000 of the rights issued in transaction (1) are exercised in 30 days.4. At the end of the year, 75% of the warrants in transaction (2) has been exercised, and the remaining is outstanding and in good standing.5. During the current year, the company grants share options for 10.000 ordinary shares to company executives. The company using a fair value option-pricing model determines that each option is worth $10. The option price is $30. The options are to expire at the year-end and are considered compensation for the current year.6. All but 1.000 shares related to the share-option plan are exercised by year-end. The expiration of share-option plan resulted within the company.Instructions: Prepare general journal entries for the current year to record the transactions listed above!

Part 2Commander Corporation had $900.000 net income in 2012. On January 1, 2012 there were 220.000 ordinary shares outstanding. On April 1, 2012, 20.000 shares were issued and on September 1, 2012, Commander Corporation bought 30.000 treasury shares. There are 30.000 options to buy ordinary share at $40 per share outstanding. The market price of the ordinary share averaged $50 during 2004. The tax rate for the year is 25%.During 2012, there were 20.000 shares of convertible preference share outstanding. The preference share is $100 par, pays $7 a year dividend, and is convertible into 3 shares of ordinary shares. Commander Corporation issued $2.000.000 of 8% convertible bonds at face value during 2010. Each $1.000 bond is convertible into 20 shares of ordinary share.Compute the Commander Corporations diluted EPS!

PROBLEM 4 (INVESTMENT)A. PT Matahari Putra Prima (MPPA) is one of the leading retail company in Indonesia that sells customer goods. During 2012, the following transactions took place:1. On February 29, MPPA acquired 15% of Timezone ownership by purchasing 1,000 shares of Timezone for Rp1,750 per share.2. On March 3, MPPA purchased 2,000 shares of Boston Health and Beauty (BHB) for Rp850 per share. MPPA also paid brokerage fee for Rp25,000.3. On March 27, Timezone declared and paid cash dividend. Each shares get Rp125.4. On April 1, BHB declared and distribute 10% stock dividend to its shareholder.5. On November 10, MPPA sold 500 shares of BHB for Rp875 per share. MPPA also paid brokerage fee for Rp5,000.6. At December 31, the shares had the following price per share values: Timezone Rp2,300, BHB Rp750.Instructions: For every transactions that occurred in 2012, record MPPA equity investment under fair value method, assume that MPPA decided the investment in Timezone and BHB as: (a) trading investment; (b) non-trading investment.

B. PT Multilever Indonesia has significant influence in Magnum Co. after purchasing 350,000 shares for Rp8,500 per share and get 40% of Magnum Co. ownership on January 1, 2013. During 2013, the following transactions took place:1. On March 9, Magnum declared and paid cash dividend for Rp150 per share.2. Magnum Co. reports their financial statement every June 30. Surprisingly, Magnum Co. reports net loss Rp10,000,000.3. At December 31, Magnum Co. shares have market value of Rp8,000 per share.Instruction: Record the transactions above under equity method. Prepare partial statement of financial position to present investment related account at December 31.

During 2012, the following transactions took place:1. On February 29, MDS paid Rp150 per share dividend.2. On May 10, MPPA sold 500 shares of Timezone for Rp1500 per share.3. On September 3, MPPA purchased 300 shares of MDS for Rp3200 per share.4. At December 31, the shares had the following price per share values: Timezone Rp1500, MDS Rp 3500, Times Bookstore Rp225.

PROBLEM 5 (STATEMENT OF CASH FLOW)PT Maskapai Indonesia is an airline company that serves main destinations in Indonesia. Here financial statement that been provided by its accountant for financial year of 2012

PT. Maskapai Indonesia

Comprehensive Income Statement

for period ended Dec 2012

Revenue 27,208,203,000

Operating Expenses:

Flight Operations (15,848,636,000)

Passengers and Airport Expense (2,329,671,000)

Hotel and Employee Services (4,243,670,000)

General and Administration (3,730,865,000)

Total operating expenses (26,152,842,000)

Operating Income 1,055,361,000

Interest Income 198,743,000

Income from Associates 145,650,000

Financial charge (173,490,000)

Gain on foreign exchange 48,968,000

Impairment loss (34,309,000)

Income before tax 1,240,923,000

Income tax expense (193,992,000)

Net Income 1,046,931,000

Other Comprehensive Income 80,206,000

Comprehensive Income 1,127,137,000

Additional information related to its financial statement as follow:1. Company has $ 100.000 foreign notes that been accumulated during the period. Average exchange rate for the period was Rp 9.136, in other hand the rate in reporting date (31/12/2012) is Rp 9.772.2. Depreciation and amortisation of assets amounting Rp 620.032.000 included in its flight operating expenses.3. During the period, company received Rp 11.590.000 dividend from its associates and recognised 29,13% stake in its associates which reporting Rp 500.000.000 net income for the period.4. There was no sale of available for sale during the reporting period.5. In 2012, company purchase additional aircraft amounting Rp 200.000.000 and sold its aircraft maintenance facility in Medan for Rp 260.093.000. all fixed assets are recognised by revaluation model and in the reporting date it is indicated increasing fair value of fixed assets by Rp 101.684.000.6. Company also finished in building new cargo facility in Jakarta to be rented to other airlines. Total construction cost was Rp 27.000.000. in other hand, land that intended to be kept for its price appreciation was affected by massive waste spill over. Thus the price is declined by Rp 34.309.000.7. Including in bank loan is discount amortisation for Rp 23.490.000, while in finance lease liability, including Rp 15.118.000 discount amortisation.8. Company bought new licence for international ticketing application for Rp 2.000.000, in other hand a right to fly to Europe amounting Rp 6.000.000 was disposed due to declining demand caused by the continents economic depression, all intangibles is recorded by cost method.9. Company declared Rp 190.264.000 cash dividend.

Required:Prepare statement of cash flow according to requirement of PSAK 2!