I completed part A but I don't know how to continue with B and C.
Pizza Corporation acquired 80 percent ownership of Slice Products Company on January 1, 20X1, for $145,000. On that date, the fair value of the noncontrolling interest was $36,250, and Slice reported retained earnings of $41,000 and had $94,000 of common stock outstanding. Pizza has used the equity method in accounting for its investment in Slice. Trial balance data for the two companies on December 31, 20X5, are as follows: Pizza Slice Corporation Products Company Item Debit Credit Debit Credit Cash & Receivables $ 91, 000 $ 66,000 Inventory 260,000 103, 000 Land 80,000 80,000 Buildings & Equipment 501,000 164,000 Investment in Slice Products Company 179,140 Cost of Goods Sold 114,000 41,000 Depreciation Expense 25,000 15,000 Inventory Losses 15,000 5,000 Dividends Declared 43,000 21, 200 Accumulated Depreciation $ 201,000 $105, 000 Accounts Payable 43,000 18,000 Notes Payable 221, 640 89, 200 Common Stock 294,000 94,000 Retained Earnings 308,000 84,000 Sales 209,000 105, 000 Income from Slice Products Company 31, 500 $1, 308, 140 $1, 308, 140 $495, 200 $495, 200 Additional Information 1. On the date of combination, the fair value of Slice's depreciable assets was $46,250 more than book value. The accumulated depreciation on these assets was $10,000 on the acquisition date. The differential assigned to depreciable assets should be written off over the following 10-year period. 2. There was $11,000 of intercorporate receivables and payables at the end of 20X5. Required: a. Prepare all journal entries that Pizza recorded during 20X5 related to its investment in Slice. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet x No Event General Journal Debit Credit A Investment in Slice Products Company 35,200 Income from Slice Products Company 35,200 B 2 Cash 16,960 Investment in Slice Products Company 16,960 C 3 Income from Slice Products Company 3,700 Investment in Slice Products Company 3,700b. Prepare all consolidation entries needed to prepare consolidated statements for 20X5. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list transaction list X No Event Accounts Debit Credit A 1 Common stock Retained earnings 84,000 Income from Slice Products Company NCI in NA of Slice Products Company Dividends declared 21,200 Investment in Slice Products Company NCI in NA of Slice Products Company B 2 Depreciation expense Income from Slice Products Company NCI in NI of Slice Products Company C 3 Buildings and equipment Accumulated depreciation Investment in Slice Products Company NCI in NA of Slice Products Company D 4 Accounts payable Cash and receivablesc. Prepare a three-part worksheet as of December 31, 20X5. (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.) PIZZA CORPORATION AND SUBSIDIARY Worksheet for Consolidated Financial Statements December 31, 20X5 Consolidation Entries Pizza Corp. Slice Products Co. DR CR Consolidated Income Statement Sales Less: COGS Less: Depreciation expense Less: Inventory losses Income from Slice Products Company Consolidated net income $ o $ 0 $ 0 $ o $ 0 NCI in net income Controlling Interest in Net Income $ o $ o $ 0 $ 0 $ 0 Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance $ o $ o $ 0 $ 0 $ Balance Sheet Cash and receivables Inventory Land Buildings and equipment Less: Accumulated depreciation Investment in Slice Products Company Total Assets $ o $ o $ O $ 0 $ Accounts payable Notes payable Common stock Retained earnings NCI in NA of Slice Products Company Total Liabilities and Equity $ o $ 0 $ 0 $ 0 $ 0
