H eztn.mheducalion.com 3-1Assignment: LessThan-Wholly-Owned Aoq Help Save 8 Exit Submit Check my work mode : Thls shows what ls correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1. 20x2, tor $114,800. At that date, the noncontrolllng interest had a fair value of $49,200 and Soda reported $70,000 of common stock outstanding and retained earnings of $25,000. The differential is assigned to buildings and equipment, which had a fair value $22,000 higher than book value and a 25 remaining 10-year life, and to patents, which had a fair value $47,000 higher than book value and a remaining life of ve years at the palms date of the business combination. Trial balances for the companies as of December 31, 20X3, are as follows: Pop Corporation Sada Company W Week Ital: Debit credit: Debit: Credit ,Ebamhwe Cash E Accounts Receivable 5 17,400 5 23,600 Inventory 16?,000 37,000 7 Land 32,000 42,000 Buildings s Equipment 360,000 252,000 Investment in Soda Company 117, mu -: Cost of Geode Sold 188,000 01,000 Depreciation Expense 25,000 20,000 'i 3- HW-I'SK Interest Expense 18, 000 7 . 200 Dividends Declared 32,000 17,000 Accumulated Depreciation s 142, 000 s 90, 000 Accounts Payable M, 400 31, 000 Bands Payable 234,100 90,000 Bond rum-ml 1,san Common Stock 122,000 70,000 Retained Earnings 129,900 62,000 Bales 262,000 140,000 Other Income 11, 60:: 7 Income from Soda company 10.420 51,006,500 $1,006,500 $490,600 $490,600 {.0405 On December 31, 20x2, Soda purchased inventory for $30,000 and sold it to Pop for $50,000. Pop resold $29,000 ofthe inventory \""5 One \"'5" e, $29,000 ofthe $50,000 acquired from Soda} during 20x3 and had the remaining balance in inventory at December 31, 20x3. l @096 $IE:U eeddaf>el ml I g Safari File Edit View History Bookmarks Window Help 46% Sun 4:30 PM Q DE . . . ezto.mheducation.com C /B. ;B. B . *Course Hero G how to add screenshot to comment. Home - >> Students B 3-1 Assignment: Less-Than-Wholl. M Connect + 3-1 Assignment: Less-Than-Wholly-Owned Acquire.. Saved Help Save & Exit Submit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 2 During 20X3, Soda sold inventory purchased for $54,000 to Pop for $90,000, and Pop resold all but $26,000 of its purchase. On March 10, 20X3, Pop sold inventory purchased for $16,000 to Soda for $32,000. Soda sold all but $8,000 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 25 no property, plant, and equipment has been purchased since the acquisition. points Required: a. Prepare all consolidation entries needed to prepare a full set of consolidated financial statements at December 31, 20X3, for Pop WEB and Soda. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) W Week rebarchive x Answer is complete but not entirely correct. Nc Entry Accounts Debit Credit "XLSX A 1 Common stock 70,000 ezto.mheducation.com C /B. ;B. B . *Course Hero G how to add screenshot to comment. Home - >> Students B 3-1 Assignment: Less-Than-Wholl.. M Connect + 3-1 Assignment: Less-Than-Wholly-Owned Acquire.. Saved Help Save & Exit Submit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 2 6 NCI in NA of Soda Company 2,520 Investment in Soda Company O 5,880 Inventory 8,400 25 points G 7 Sale 122,000 WEB Cost of goods sold 107,600 W Week Inventory 14,400 rebarchive XLSX 3 HW.xIsx b. Prepare a three-part consolidation worksheet for 203. (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.) reen Shot 10...0.33 PM * Answer is complete but not entirely correct. POP CORPORATION & SUBSIDIARY XLSX Consolidated Financial Statement Worksheet For 20X3 CC 405 Consolidation Entries one One .xisx Pon Corn. Soda Co. DR CR Consolidated 11 W P X MOVSafari File Edit View History Bookmarks Window Help 46% Sun 4:31 PM Q DE . . . ezto.mheducation.com C /B. ;B. B . *Course Hero G how to add screenshot to comment. Home - >> Students B 3-1 Assignment: Less-Than-Wholl.. M Connect + 3-1 Assignment: Less-Than-Wholly-Owned Acquire.. Saved Help Save & Exit Submit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 2 POP CORPORATION & SUBSIDIARY Consolidated Financial Statement Worksheet For 20X3 25 Consolidation Entries points Pop Corp. Soda Co. DR CR Consolidated Income Statement WEB Sales $ 262,000 $ 140,000 $ 122,000 $ 280,000 W Week Other Income 11,600 11,600 rebarchive Less: COGS 188,000) (81,800) 119,200 150,600) Less: Depreciation Expense (25,000) (20,000) 2,200 (47,200) Less: Interest Expense (18,000) (7,200) 25,200) "XLSX Less: Amortization Expense 9,400 (9,400) ezto.mheducation.com C /B. ;B. B . *Course Hero G how to add screenshot to comment. Home - >> Students B 3-1 Assignment: Less-Than-Wholl.. M Connect + 3-1 Assignment: Less-Than-Wholly-Owned Acquire.. Saved Help Save & Exit Submit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 2 INEL IIIQUITE JO,UZU 10 1,OUV IJU,OUV JJ,UZU Less: Dividends declared (32,000) (17,000) 17,000 (32,000 Ending Balance $ 150,920 $ 76,000 $ 223,800 $ 147,800 $ 150,920 Balance Sheet 25 Cash and Accounts Receivable $ 17,400 $ 23,600 $ 41,000 points Inventory 167,000 37,000 22,800 181,200 WEB Land 82,000 42,000 124,000 Buildings & Equipment 360,000 262,000 22,000 50,000 594,000 W Week rebarchive Less: Accumulated Depreciation (142,000) (90,000) 50,000 4,400 (186,400) Investment in Soda Company 117,100 14,000 100,240 X 30,860 Patents 28,200 28,200 "XLSX Total Assets $ 601,500 $ 274,600 $ 114,200 $ 177,440 $ 812,860 Accounts Payable 94,400 $ 37,000 $