Pie Corporation acquired 75 percent of Slice Company's ownership on January 1, 20X8, for $93,000. At...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image](https://dsd5zvtm8ll6.cloudfront.net/questions/2024/04/660f598bec986_995660f598be5266.jpg)
Transcribed Image Text:
Pie Corporation acquired 75 percent of Slice Company's ownership on January 1, 20X8, for $93,000. At that date, the fair value of the noncontrolling interest was $31,000. The book value of Slice's net assets at acquisition was $90,000. The book values and fair values of Slice's assets and liabilities were equal, except for Slice's buildings and equipment, which were worth $18,000 more than book value. Accumulated depreciation on the buildings and equipment was $27,000 on the acquisition date. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, the management of Pie concluded at December 31, 20X8, that goodwill from its purchase of Slice shares had been impaired and the correct carrying amount was $2,900. Goodwill and goodwill impairment were assigned proportionately to the controlling and noncontrolling shareholders. Trial balance data for Pie and Slice on December 31, 20X8, are as follows: Item Cash Pie Corporation Debit Credit Accounts Receivable Inventory Land $ 51,500 90,000 Slice Company Debit $ 28,000 Credit 19,000 110,000 32,000 37,000 22,000 Interest Expense Buildings and Equipment Investment in Slice Company Cost of Goods Sold Wage Expense Depreciation Expense Other Expenses 361,000 164,000 101,775 117,000 102,000 35,000 26,000 24,000 9,000 11,000 3,000 12,500 4,000 Dividends Declared 31,000 15,400 Accumulated Depreciation Accounts Payable $ 139,000 42,000 $ 36,000 14,000 Wages Payable 15,000 10,000 Notes Payable 203,450 88,400 Common Stock 200,000 54,000 Retained Earnings 102,000 36,000 Sales Income from Slice Company $ 981,775 260,000 20,325 $ 981,775 186,000 $ 424,400 $ 424,400 Required: a. Record all consolidation entries needed to prepare a three-part consolidation worksheet as of December 31, 20X8. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. view transaction list transaction list Record the basic consolidation entry. Record the amortized excess value reclassification entry. Record the excess value (differential) reclassification entry. Record the optional accumulated depreciation consolidation entry. Note: journal entry has been entered Accumulated depreciation Investment in Slice Company NCI in Net assets of Slice Company D 4 Accumulated depreciation Buildings and equipment Debit Credit 54,000 36,000 18,400 15,400 22,500 27,000 27,000 Pie Corporation acquired 75 percent of Slice Company's ownership on January 1, 20X8, for $93,000. At that date, the fair value of the noncontrolling interest was $31,000. The book value of Slice's net assets at acquisition was $90,000. The book values and fair values of Slice's assets and liabilities were equal, except for Slice's buildings and equipment, which were worth $18,000 more than book value. Accumulated depreciation on the buildings and equipment was $27,000 on the acquisition date. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, the management of Pie concluded at December 31, 20X8, that goodwill from its purchase of Slice shares had been impaired and the correct carrying amount was $2,900. Goodwill and goodwill impairment were assigned proportionately to the controlling and noncontrolling shareholders. Trial balance data for Pie and Slice on December 31, 20X8, are as follows: Item Cash Pie Corporation Debit Credit Accounts Receivable Inventory Land $ 51,500 90,000 Slice Company Debit $ 28,000 Credit 19,000 110,000 32,000 37,000 22,000 Interest Expense Buildings and Equipment Investment in Slice Company Cost of Goods Sold Wage Expense Depreciation Expense Other Expenses 361,000 164,000 101,775 117,000 102,000 35,000 26,000 24,000 9,000 11,000 3,000 12,500 4,000 Dividends Declared 31,000 15,400 Accumulated Depreciation Accounts Payable $ 139,000 42,000 $ 36,000 14,000 Wages Payable 15,000 10,000 Notes Payable 203,450 88,400 Common Stock 200,000 54,000 Retained Earnings 102,000 36,000 Sales Income from Slice Company $ 981,775 260,000 20,325 $ 981,775 186,000 $ 424,400 $ 424,400 Required: a. Record all consolidation entries needed to prepare a three-part consolidation worksheet as of December 31, 20X8. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. view transaction list transaction list Record the basic consolidation entry. Record the amortized excess value reclassification entry. Record the excess value (differential) reclassification entry. Record the optional accumulated depreciation consolidation entry. Note: journal entry has been entered Accumulated depreciation Investment in Slice Company NCI in Net assets of Slice Company D 4 Accumulated depreciation Buildings and equipment Debit Credit 54,000 36,000 18,400 15,400 22,500 27,000 27,000
Expert Answer:
Related Book For
Advanced Financial Accounting
ISBN: 9781265042615
13th International Edition
Authors: Theodore E. Christensen, David M. Cottrell, Cassy Budd
Posted Date:
Students also viewed these accounting questions
-
Based on the information given on page 27 of Designing and Managing the Supply Chain (3rd Edition) about Steel Work, Inc, what are the supporting facts of the case? What can be implied through the...
-
This problem is a continuation of P533. Pie Corporation acquired 75 percent of Slice Companys ownership on January 1, 20X8, for $96,000. At that date, the fair value of the noncontrolling interest...
-
Do you think companies that opt to use the international strategy are typically looking to have low cost pressures as well as low pressure from the local consumers?
-
If the Federal Government increases taxes:What will be the effect on money demand, money supply, and interest rates? Money demand decreases, money supply is unchanged, and interest rates decrease...
-
In the op amp circuit in Fig. 11.42, find the total average power absorbed by the resistors. ww- V, cos ut V (+1)
-
In deciding whether to drop its electronics product line, Best Buy's managers would consider: a. The revenues it would lose from dropping the product line b. The costs it could save by dropping the...
-
What is gross operating income?
-
Is problem requires the use of ACL software. Use the Metaphor_Trans_All file in ACL Demo, which is a file of outstanding sales invoices (each row represents an invoice transaction). The suggested...
-
Presented below are two independent situations. (a) Pharoah Co. sold $1,890,000 of 12%, 10-year bonds at 105 on January 1, 2020. The bonds were dated January 1, 2020, and pay interest on July 1 and...
-
create10 questionnaire questions for residents of a small community facing a problem of atmospheric pollution caused by emission from a nearby bauxite mining company . Questionnaire should ask about...
-
Revenue and cash receipts journals; accounts receivable subsidiary and general ledgers Transactions related to revenue and cash receipts completed by Crowne Business Services Co. during the period...
-
Panguitch Company had sales for the year of $100,000. Expenses (except for income taxes) for the year totaled $80,000. Of this $80,000 in expenses, $10,000 is bad debt expense. The tax rules...
-
Assume that the composition of federal outlays and receipts shown in the figure remained the same in 2019. In the figure, the categories "Defense and homeland security" and "Non-defense...
-
1) A car's age is a _ variable. Quantitative O Categorical 2) A car's maker is a variable O Quantitative Categorical 3) A house's square footage is a _________variable O Quantitative O Categorical 4)...
-
The following table shows the distribution of clients by age limits. Use the grouped data formulas to calculate the variance and standard deviation of the ages. Rango de edad Cantidad de clientes...
-
A company produces a special new type of TV. The company has fixed costs of $458,000 and it costs $1000 to produce each TV. The company projects that if it charges a price of $2300 for the TV, it...
-
Perform the operation by first converting the numerator and denominator to scientific notation. Write the answer in scientific notation. 7,200,00/0.000009
-
16. The Willingham Museum qualifies as a component unit of the City of Willingham. How does an activity or function qualify to be a component unit of a primary government?
-
13. What does the managements discussion and analysis (MD&A) normally include? Where does a state or local government present this information?
-
12. What impact does the use of the modified approach have on reporting within the government-wide financial statements?
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App