(A) RECORD THE BASIC CONSOLIDATION ENTRY
(B) RECORD THE AMORITZED EXCESS VALUE RECLASSIFICATION ENTRY
(C) RECORD THE EXCESS VALUE (DIFFERENTIAL) RECLASSIFICATION ENTRY
(D) RECORD THE OPTIONAL ACCUMULATED DEPRECIATION CONSOLIDATION ENTRY
Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $163,000. At that date, the fair value of Saver's buildings and equipment was $34,000 more than the book value. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, Price's management concluded at December 31, 20X8, that goodwill involved in its acquisition of Saver shares had been impaired and the correct carrying value was $6,000. Trial balance data for Price and Saver on December 31, 20X8, are as follows: Price Corporation Saver Company Item Debit Credit Debit Credit Cash $ 23,000 $ 28,000 Accounts Receivable 77,000 15,500 Inventory 97,000 32,000 Land 37,000 22,000 Buildings & Equipment 333,000 157,000 Investment in Saver Company 151,100 Cost of Goods Sold 132,000 93,000 Wage Expense 69,500 30,500 Depreciation Expense 28,500 13,500 Interest Expense 15,500 7,500 Other Expenses 27,500 22,500 Dividends Declared 37,000 19,500 Accumulated Depreciation $ 148,500 $ 75,000 Accounts Payable 80,000 23,000 Wages Payable 24,000 12,500 Notes Payable 157,000 29,500 Common Stock 207,000 60,000 Retained Earnings 109,000 40,000 Sales 295,000 201,000 Income from Saver Company 7,600 $1,028, 100 $1,028,100 $441,000 $441,000 Required: a. Prepare the following consolidating entries needed to prepare a three-part consolidation worksheet as of December 31, 20X8. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) b. Prepare a three-part consolidation worksheet for 20X8. (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.) PRICE CORPORATION AND SUBSIDIARY Consolidated Financial Statements Worksheet December 31, 20X8 Consolidation Entries Price Corp. Saver Co. DR CR Consolidated Income Statement Sales Less: COGS Less: Wage expense Less: Depreciation expense Less: Interest expense Less: Other expenses Less: Impairment loss Income from Saver Co. $ 0 $ 0 $ 0 $ 0 $ 0 Net Income Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance $ 0 $ 0 $ 0 $ 0 $ 0 Assets Cash Accounts receivable Inventory Land Buildings & equipment Less: Accumulated depreciation Investment in Saver Co. Goodwill Total Assets Liabilities & Stockholders' Equity Accounts payable Wages payable Notes payable Common stock $ 0 $ 0 $ 0 $ 0 $ 0 Retained earnings Total Liabilities & Equity $ 0 $ 0 $ 0 $ 0 $ 0 Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $163,000. At that date, the fair value of Saver's buildings and equipment was $34,000 more than the book value. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, Price's management concluded at December 31, 20X8, that goodwill involved in its acquisition of Saver shares had been impaired and the correct carrying value was $6,000. Trial balance data for Price and Saver on December 31, 20X8, are as follows: Price Corporation Saver Company Item Debit Credit Debit Credit Cash $ 23,000 $ 28,000 Accounts Receivable 77,000 15,500 Inventory 97,000 32,000 Land 37,000 22,000 Buildings & Equipment 333,000 157,000 Investment in Saver Company 151,100 Cost of Goods Sold 132,000 93,000 Wage Expense 69,500 30,500 Depreciation Expense 28,500 13,500 Interest Expense 15,500 7,500 Other Expenses 27,500 22,500 Dividends Declared 37,000 19,500 Accumulated Depreciation $ 148,500 $ 75,000 Accounts Payable 80,000 23,000 Wages Payable 24,000 12,500 Notes Payable 157,000 29,500 Common Stock 207,000 60,000 Retained Earnings 109,000 40,000 Sales 295,000 201,000 Income from Saver Company 7,600 $1,028, 100 $1,028,100 $441,000 $441,000 Required: a. Prepare the following consolidating entries needed to prepare a three-part consolidation worksheet as of December 31, 20X8. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) b. Prepare a three-part consolidation worksheet for 20X8. (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.) PRICE CORPORATION AND SUBSIDIARY Consolidated Financial Statements Worksheet December 31, 20X8 Consolidation Entries Price Corp. Saver Co. DR CR Consolidated Income Statement Sales Less: COGS Less: Wage expense Less: Depreciation expense Less: Interest expense Less: Other expenses Less: Impairment loss Income from Saver Co. $ 0 $ 0 $ 0 $ 0 $ 0 Net Income Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance $ 0 $ 0 $ 0 $ 0 $ 0 Assets Cash Accounts receivable Inventory Land Buildings & equipment Less: Accumulated depreciation Investment in Saver Co. Goodwill Total Assets Liabilities & Stockholders' Equity Accounts payable Wages payable Notes payable Common stock $ 0 $ 0 $ 0 $ 0 $ 0 Retained earnings Total Liabilities & Equity $ 0 $ 0 $ 0 $ 0 $ 0
