17

Pizza Corporation acquired 100 percent of Slice Company on January 1, 205, for $350,000. Following are selected account balances from Pizza and Slice Corporation as of December 31,205 Additional Information: 1. On January 1, 205 the fair market value of Slice's assets equaled their book value with the exception of Plant Assets (with an estimated economic life of 6 years) which had a fair market value in excess in Slice's depreciable assets of $33,000. 2. Pizza used the equity method in accounting for its investment in Slice. 3. Detalled analysis of receivables and payables showed that Slice owed Pizza $10,000 on December 31,205. Required: a. Give all journal entries recorded by Pizza with regard to its investment in Slice during 205. b. Give all consolidating entries needed to prepare a full set of consolidated financial statements for 205. c. Prepare a three-part consolidation worksheet as of December 31,205. Pizza Corporation acquired 100 percent of Slice Company on January 1, 205, for $350,000. Following are selected account balances from Pizza and Slice Corporation as of December 31,205 Additional Information: 1. On January 1, 205 the fair market value of Slice's assets equaled their book value with the exception of Plant Assets (with an estimated economic life of 6 years) which had a fair market value in excess in Slice's depreciable assets of $33,000. 2. Pizza used the equity method in accounting for its investment in Slice. 3. Detalled analysis of receivables and payables showed that Slice owed Pizza $10,000 on December 31,205. Required: a. Give all journal entries recorded by Pizza with regard to its investment in Slice during 205. b. Give all consolidating entries needed to prepare a full set of consolidated financial statements for 205. c. Prepare a three-part consolidation worksheet as of December 31,205