Exercise 3-6

On December 31, 2013, Price Company purchased a controlling interest in Shipley Company. The balance sheet of Price Company and the consolidated balance sheet on December 3, 2013, were as follows:

		Price Company		Consolidated
Cash		$22,960		$40,015
Accounts receivable		31,920		59,330
Inventory		121,760		175,450
Investment in Shipley Company		193,560		0
Plant and equipment (net)		199,520		320,530
Land		123,190		205,993
Total		$692,910		$801,318
Accounts payable		$41,610		$115,860
Note payable		97,900		97,900
Noncontrolling interest in Shipley Company		0		34,158
Common stock		304,200		304,200
Other contributed capital		155,970		155,970
Retained earnings		93,230		93,230
Total		$692,910		$801,318

On the date of acquisition, the stockholders equity section of Shipley Companys balance sheet was as follows:

Common stock		$84,810
Other contributed capital		92,240
Retained earnings		44,730
Total		$221,780

On the date of acquisition, the stockholders' equity section of Shipley Company's balance sheet was as follows: SOURCES 1 apters Common stock Other contributed capital Retained earnings Total $84,810 92,240 44,730 $221,780 (a) Your answer is correct. Prepare the investment elimination entry made to complete a consolidated balance sheet workpaper. Any difference between book value and the value implied by the purchase price relates to subsidiary land. (If select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Common Stock 84,810 s by Study Other Contributed Capital 92,240 Retained Earnings 44,730 Land 5,938 Investment in Shipley 193,560 Noncontrolling Interest 34,158 SHOW LIST OF ACCOUNTS LINK TO TEXT Attempts: 1 of 5 used (b) Prepare Shipley Company's balance sheet as it appeared on December 31, 2013. (List assets in order of liquiditv.) E3C6D-93AB-.jpeg 45720CB7-1CBE....Jpeg Type here to search (b) Prepare Shipley Company's balance sheet as it appeared on December 31, 2013. (List assets in order of liquidity.) SHIPLEY COMPANY Balance Sheet ENT RESOURCES Topic 01 Tk - Chapters 3 e 2-1 e 2-2 e 2-5 e 2-Z e 2-9 e 2-10 72-1 2 3-2 Assets e 3-3 e 3-4 e 3-6 e 3-8 core esults by Study Liabilities and Stockholders' Equity SHOW LIST OF ACCOUNTS LINK TO TEXT 4E3C60-93AB-jpeg 45720C87-1CRE