Answered step by step
Verified Expert Solution
Question
1 Approved Answer
How do you calculate the optional accumulation depreciation consolidation entry? I have done all the consolidation entries, but that is the only one that i'm
How do you calculate the optional accumulation depreciation consolidation entry? I have done all the consolidation entries, but that is the only one that i'm stuck. I have prepared the three way consolidation sheet as well, but this is driving me crazy and I have spent too much time. Thanks
Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20x8, for $133.000. At that date, the fair value of Saver's buildings and equipment was $22,000 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 $3,000. Trial balance data for Price and Saver on December 31, 20X8. are as follows: Price Corporation Saver Company Item Debit Credit Debit Credit Cash $ 29, eee $ 22,800 Accounts Receivable 71,00 12,500 Inventory 91, eee 26,00 Land 31,000 16, cee Buildings & Equipment 351, eee 151, eee Investment in Saver Company 128,300 Cost of Goods Sold 126,000 111,820 Wage Expense 42,500 27, see Depreciation Expense 25, see 10,500 Interest Expense 12,500 4, see Other Expenses 15,500 7,500 Dividends Declared 31,800 16,500 Accumulated Depreciation $145,500 $ 45,800 Accounts Payable 50,000 17,00 Wages Payable 18. Bee 9,500 Notes Payable 151,000 50,5ee Common Stock 201, eae 60, eee Retained Earnings 183, ene 40, eae Sales 265, eee 183, eee Income from Saver Company 11, see $945, 300 $945,300 $405,000 $485,600 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.) Answer is complete but not entirely correct. No Event Accounts Debit Credit A 1 > 80,000 Common stock Retained earnings Income from Saver Company Dividends declared Investment in Saver Company 40,000 22.000 >ISIS 16.500 105.500 B 2 Depreciation expense Goodwill impairment loss Income from Saver Company 2.200 8,000 10.200 3 22,000 3,000 Buildings and equipment Goodwill Accumulated depreciation Investment in Saver Company OOOO 2.200 22.800 D 4 30,150 Accumulated depreciation Buildings and equipment Olo 30,150 XStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started