Chp 5-Problem i 1 Pie Corporation acquired 75 percent of Slice Company's ownership on January 1, 20X8, for $96,000. At that date, the fair value of the noncontrolling interest was $32,000. The book value of Slice's net assets at acquisition was $100,000. The book values and fair values of Slice's assets and liabilities were equal, except for Slice's buildings and equipment, which were worth $20,000 more than book value. Accumulated depreciation on the buildings and equipment was $30,000 on the acquisition date. Buildings and equipment are depreciated on a 10-year basis. 10 points eBook P Print References 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 $2,500. 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 Accounts Receivable Inventory Land Buildings & Equipment Investment in slice Company Cost of Goods Sold Wage Expense Depreciation Expense Interest Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Wages Payable Notes Payable Common Stock Retained Earnings Sales Income from Slice Company view transaction list Consolidation Worksheet Entries A Record the Note: Enter deb Entry 1 Record entry 8 CD No journal entry required Accounts payable Accounts receivable Accumulated depreciation Pie Corporation Debit Clear entry $ 47,500 70,000 90,000 30,000 350,000 96,375 125,000 42,000 25,000 12,000 13,500 30,000 $931,375 Credit Required: a. Record all consolidation 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.) $145,000 45,000 17,000 150,000 200,000 102,000 260,000 12,375 $931,375 Debit slice Company Debit $ 21,000 12,000 25,000 15,000 150,000 110,000 27,000 10,000 4,000 5,000 16,000 $395,000 Credit 85,200 Credit view consolidation entries $ 40,000 16,000 9,000 50,000 60,000 40,000 180,000 $395,000 Chp 5-Problem 1 of Slice's assets and liabilities were equal, except for Slice's buildings and equipment, which were worth $20,000 more than book value. Accumulated depreciation on the buildings and equipment was $30,000 on the acquisition date. Buildings and equipment are depreciated on a 10-year basis. 10 points eBook C Print n References 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 $2,500. 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 Accounts Receivable Inventory Land Buildings & Equipment Investment in Slice Company Cost of Goods Sold Wage Expense Depreciation Expense Interest Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Wages Payable Notes Payable Common Stock Retained Earnings Sales Income from Slice Company view transaction list D Record the optional accumulated depreciation consolidation entry. Note : = journal entry has been entered Pie Corporation Debit Record entry $ 47,500 70,000 90,000 30,000 350,000 Clear entry 96,375 125,000 42,000 25,000 A Record the basic consolidation entry. B Record the amortized excess value reclassification entry. c Record the excess value (differential) reclassification entry. 12,000 13,500 30,000 $931,375 Credit $145,000 45,000 17,000 150,000 200,000 102,000 260,000 12,375 $931,375 Slice Company Debit Credit $ 21,000 12,000 25,000 15,000 150,000 Required: a. Record all consolidation 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.) 110,000 27,000 10,000 4,000 5,000 16,000 $395,000 Credit 85,200 $ 40,000 16,000 9,000 50,000 60,000 40,000 180,000 view consolidation entries $395,000 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 eBook Print References 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.) Income Statement Sales Less: COGS Less: Wage expense Less: Depreciation expense Less: Interest expense Less: Other expenses Less: Impairment loss Income from Slice Company Consolidated net income NCI in net income Controlling Interest in Net Income Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance Balance Sheet Cash Accounts receivable Inventory Land Buildings and equipment Less: Accumulated depreciation Investment in Slice Comapny Goodwill Total Assets Accounts payable Wages payable Notes payable Common stock Retained earnings NCI in NA of Slice Company Total Liabilities and Equity PIE CORPORATION AND SUBSIDIARY Worksheet for Consolidated Financial Statements December 31, 20X8 Pie Corp. $ $ $ $ $ Slice Co. 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ Consolidation Entries CR DR 0 $ 0 $ 0 $ 0 $ 0 $ Consolidated 0 $ 0 $ 0 $ 0 $ 0 $ 0 0 0 0 0 0