19 14 points S Skipped Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $119,000. At that date, the noncontrolling interest had a fair value of $51,000 and Soda reported $70,000 of common stock outstanding and retained earnings of $33,000. The differential is assigned to buildings and equipment, which had a fair value $29,000 higher than book value and a remaining 10-year life, and to patents, which had a fair value $38,000 higher than book value and a remaining life of five years at the date of the business combination. Trial balances for the companies as of December 31, 20X3, are as follows: Pop Corporation Soda Company Item Debit Credit Debit Credit Cash & Accounts Receivable 18,400 $ 24,600 Inventory 168,000 38,000 Land 83,000 43,000 Buildings & Equipment 370,000 263,000 Investment in Soda Company 117,235 Cost of Goods Sold 189,000 82,800 Depreciation Expense 20,000 15,000 Interest Expense 19,000 8,200 Dividends Declared 33,000 18,000 Accumulated Depreciation $ 143,000 $ 75,000 Accounts Payable 95, 400 38,000 Bonds Payable 240,790 110,000 Bond Premium 1,600 Common Stock 123,000 70,000 Retained Earnings 130,900 63,000 Sales 263,000 135,000 Other Income 12,600 Income from Soda Company 8,945 $1,017,635 $1,017, 635 $492,600 $492,600 eBook Ask D Print lo References On December 31, 20x2, Soda purchased Inventory for $31,200 and sold it to Pop for $48,000. Pop resold $30,000 of the Inventory (i.e., $30,000 of the $48,000 acquired from Soda) during 20x3 and had the remaining balance in inventory at December 31, 20X3 During 20x3, Soda sold inventory purchased for $65,000 to Pop for $100,000, and Pop resold all but $29,000 of its purchase. On March 10, 20X3, Pop sold inventory purchased for $17,000 to Soda for $34,000. Soda sold all but $8,500 of the inventory prior to December 31, 20X3. Assume Pop uses the fully adjusted equity method, that both companies use straight-line depreciation, and that no property, plant, and equipment has been purchased since the acquisition. Required: a. Prepare all consolidation entries needed to prepare a full set of consolidated financial statements at December 31, 20X3, for Pop and Soda. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list 19 b. Prepare a three-part consolidation worksheet for 20X3. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.) 14 points Skipped eBook Ask Print References References POP CORPORATION & SUBSIDIARY Consolidated Financial Statement Worksheet For 20X3 Consolidation Entries Pop Corp. Soda Co. DR CR Consolidat Income Statement Sales Other Income Less: COGS Less: Depreciation Expense Less: Interest Expense Less: Amortization Expense Income from Soda Company Net Income 0 0 0 NCI in Net Income Controlling Interest in Net $ ol $ 0 $ 0 $ 0 $ 0 Income Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance $ 0 $ 0 $ 0 $ 0 $ 0 Balance Sheet Cash and Accounts Receivable Inventory Land Buildings & Equipment Less: Accumulated Depreciation Investment in Soda Company Patents Total Assets $ 0 $ 0 $ 0 $ 0 $ 0 Accounts Payable Bonds Payable Bonds Premium Common Stock Retained Earnings NCI in NA of Soda Company Total Liabilities & Equity $ 0 $ ol $ 0 $ 0 $ 0