Advance Accounting

Pie Corporation acquired 75 percent of Slice Corn pa ny'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 $89,000. The book values and fair values of Slice's assets and liabilities were equal, except for Slice's buildings and equipment, which were worth $17,800 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 10year 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 $3,000. 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: Pie Corporation Slice Company Item Debit Credit Debit Credit Cash $ 55,500 $ 27,000 Accounts Receivable 77 , 00 0 18 , 00 0 Inventory 97,000 31,000 Land 33,000 21,000 Buildings 0 Equipment 365,000 154,000 Investment in Slice Company 97 , 2 15 Cost of Goods Sold 121,000 106,000 Wage Expense 36,000 20,000 Depreciation Expense 21,000 9,000 Interest Expense 8,000 3,000 other Expenses 9,500 4,000 Dividends Declared 32 , 00 0 16 , 4 0 0 Accumulated Depreciation $142,000 $ 36,000 Accounts Payable 26,000 7,000 Wages Payable 8,000 3,000 Notes Payable 188,700 94,400 Common Stock 200,000 66,000 Retained Earnings 102,000 23,000 Sales 269,000 180,000 Income from Slice Company 16 , 515 $952,215 $952,215 $409,400 $409,400 view transaction list A Record the basic consolidation entry. > B Record the amortized excess value reclassification entry. C Record the excess value (differential) reclassification entry. D Record the optional accumulated depreciation consolidation entry. Credit Note : = journal entry has been entered Record entry Clear entry view consolidation entriesview transaction list Consolidation Worksheet Entries A B C D Record the basic consolidation entry. Note: Enter debits before credits. Entry Accounts Debit Credit 1 Record entry Clear entry view consolidation entriesb. 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.) Income Statement Sales Less: COGS Less: Wage expense Less: Depreciation expense _ _ _ _ Less: Interest expense ____ Less: omer expenses ____ Less: tmpatrmenttoss ____ eonsottdetee net income ____ NCI in net income ____ Controlling Interest in Net Income Statement of Retained Earnings _ Net income Less: Dividends declared Ending Balance Balance Sheet Cash Accounts receivable Inventory Land Buildings and equipment Less: Accumulated depreciation Investment in Slice Company Goodwill Total Assets Accounts payable Wages payable Notes payable Common stock Retained earnings NCI in NA of Slice Company Total Liabilities and Equity