P4-33 Consolidation Worksheet at End of First Year of Ownership LO 4-5
Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $128,000. At that date, the fair value of Savers buildings and equipment was $20,000 more than the book value. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, Prices management concluded at December 31, 20X8, that goodwill involved in its acquisition of Saver shares had been impaired and the correct carrying value was $2,500.
Trial balance data for Price and Saver on December 31, 20X8, are as follows:
P4-33 Consolidation Worksheet at End of First Year of Ownership LO 4-5 Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $128,000. At that date, the fair value of Saver's buildings and equipment was $20,000 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 $2,500. Trial balance data for Price and Saver on December 31, 20X8, are as follows: Cont ol f Goods ae Expe 16000 40 000 16 000 30000 45000 Wages Payable Income from Saver Company 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.) Worksheet Entries Record the basic consolidation entry 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.) Consolidation Worksheet Entries Record the amortized excess value reclassification entry Note: Enter debits before credits Event Debit Credit 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.) Consolidation Worksheet Entries Record the excess value (differential) reclassification entry Note: Enter debits before credits Debit Credit Event 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.) Consolidation Worksheet Entries Record the optional accumulated depreciation consolidation entry Note: Enter debits before credits Debit Credit Event b. Prepare a three-part consolidation worksheet for 20X8. (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.) Consolidated Financial Statements Worksheet December 31, 20xXE Income Statement Less COGS Less: Wage expense Less Interest expense Less Oner expenses Less: impairment loss Income from Saver Co. Net Income Statement of Retained Earnings Less: Dividends declared Ending Balance Assets Cash Buildings&eqipment Investment in Saver Co. Goodwill Total Assets Liabilities &Stockhelders Equity Accounts payable Wages payable Notes payable Common stock Total Liabilities & Equity
