1.Prepare the equity method entries related to the investment in Slice Company during 20X8.Prepare the journal entry made by Pie and Slice related to the bonds Pie sold to Slice.

2. Prepare the consolidation entries made by Pie for its investment in Slice Company for December 31, 20X8.

 

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538Quiz 6 Entries $21 Data Mining Balances as of December 31, 20X8 Credit A Home Insert Draw Page Layout H24 :x✓ fx. Quiz 5 Data: Pie Company Mem Cash 40,000 41,480 Accounts Receivable Inventory 120,000 Buildings and Equipment 500,000 Investment in Slice Company 101,772 99,800 Investment in Pie Bonds Cost of Goods Sold Depreciation Expense Interest Expense Dividends Declared 25,000 5,790 40,000 Accumulated Depreciation 175,000 75,000 Accounts Payable 68,800 41,200 Bonds Payable 80,000 200,000 2,100 Premium on Bonds Common Stock 200,000 100,000 230,068 49,830 Retained Eamings Sales 200,000 114,000 Interest income 5,790 Income from Slice Company 17,874 973,842 $ 973,842 $ 585,820 $ 585,820 Additional Information 1. Pie Company acquired 60 percent ownership of Slice Company on January 1, 20X7 at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 40% of Slice's book value. 2. On January 1, 20x7, Ple sold $80,000 par value, 8 percent, five-year bonds directly to Slice when the market interest rate was 7 percent. The sales price was $83,280. The bonds pay interest annually on December 31. a. Pe uses the equity method in accounting for its investment in Slice... H 31 H D me ba C Select destinate and press ENTER or shoe Pa 21 J Formulas Data Review View Analytic Solver +20 Points Debit Slice Company 25,000 13,720 65,000 300,000 82,100 61,000 15,000 14,000 10,000 Debit Tell me Credit * Share Comments N 100% M 538Quiz 6 Entries $21 Data Mining Balances as of December 31, 20X8 Credit A Home Insert Draw Page Layout H24 :x✓ fx. Quiz 5 Data: Pie Company Mem Cash 40,000 41,480 Accounts Receivable Inventory 120,000 Buildings and Equipment 500,000 Investment in Slice Company 101,772 99,800 Investment in Pie Bonds Cost of Goods Sold Depreciation Expense Interest Expense Dividends Declared 25,000 5,790 40,000 Accumulated Depreciation 175,000 75,000 Accounts Payable 68,800 41,200 Bonds Payable 80,000 200,000 2,100 Premium on Bonds Common Stock 200,000 100,000 230,068 49,830 Retained Eamings Sales 200,000 114,000 Interest income 5,790 Income from Slice Company 17,874 973,842 $ 973,842 $ 585,820 $ 585,820 Additional Information 1. Pie Company acquired 60 percent ownership of Slice Company on January 1, 20X7 at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 40% of Slice's book value. 2. On January 1, 20x7, Ple sold $80,000 par value, 8 percent, five-year bonds directly to Slice when the market interest rate was 7 percent. The sales price was $83,280. The bonds pay interest annually on December 31. a. Pe uses the equity method in accounting for its investment in Slice... H 31 H D me ba C Select destinate and press ENTER or shoe Pa 21 J Formulas Data Review View Analytic Solver +20 Points Debit Slice Company 25,000 13,720 65,000 300,000 82,100 61,000 15,000 14,000 10,000 Debit Tell me Credit * Share Comments N 100% M

Answer rating: 100% (QA)

Data 1 Page Towinal Entries In the Books of Pue Particulars Outi Debit 7 1 Jan ... View the full answer