Journal entries

1. Putt Company acquired 70 percent ownership of Slice Company on January 1,203 for 158,900 At that date, the fair value of the noncontrolling interest was $68,100. Slice reported common stock outstanding of $100,000 and retained earnings of $85,000. 2. On January 1, 20X3, the entire amount of differential is assigned to Goodwill. No impairment of goodwill was noted for 2008. 3. Accumulated Depreciation on buildings and equipment was $25,000 on the acquisition date. 4. Putt used the fullly adjusted equity method in accounting for its investment in Slice. 5. Inventory transactions are as follows: a. Slice sold inventory costing $25,500 to Putt for $42,500 in 207. Putt resold 80% of the purchase in 207 and the remainder in 208. b. Slice sold inventory costing $21,000 to Putt for $35,000 in 208. Putt resold 70% of the purchase in 208. c. Putt sold inventory costing $14,000 to Slice for $28,000 in 208. Slice resold all but $13,000 of the purchase in 20X8. 6. Long term asset transactions included the following: a. Putt sold land that had cost of $21,000 to Slice for $32,000 on January 1,207. b. On January 1, 20X8, Slice sold to Putt equipment that it had purchased for $100,000 on January 1,206 ( 2 years earlier). The equipment had a total economic life of 10 years with a salvage value of $10,000. Slice sold the equipment to Putt for $91,600. Both companies use straight-line depreciation and the life and salvage value remained unchanged as a result of the transfer