P5-33 Consolidation Worksheet at End of First Year of Ownership LO 5-2

Pie Corporation acquired 75 percent of Slice Companys ownership on January 1, 20X8, for $96,000. At that date, the fair value of the noncontrolling interest was $32,000. The book value of Slices net assets at acquisition was $100,000. The book values and fair values of Slices assets and liabilities were equal, except for Slices buildings and equipment, which were worth $20,000 more than book value. Accumulated depreciation on the buildings and equipment was $30,000 on the acquisition date. Buildings and equipment are depreciated on a 10-year basis.

PS-33 Consolidation Worksheet at End of First Year of Ownership LO 5-2 Pie Corporation acquired 75 percent of Slice Company's ownership on January 1, 20X8, for $96,000. At that date, the fair value of the noncontrolling interest was $32,000. The book value of Slice's net assets at acquisition was $100,000. The book values and fair values of Slice's assets and liabilities were equal, except for Slice's buildings and equipment, which were worth $20,000 more than book value. Accumulated depreciation on the buildings and equipment was $30,000 on the acquisition date. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, the management of Pie concluded at December 31, 20x8, that goodwill from its purchase of Slice shares had been impaired and the correct carrying amount was $2,500. Goodwill and goodwill impairment were assigned proportionately to the controlling and noncontrolling shareholders. on December 31, 20X8, are as follows: Trial balance data for Pie and Slice Debr 21 000 12.000 25000) 15,000 Cede De 4750m 70000 m Cash Accounts Receiagle eory Land 30000 B Cempe Epapment 150000 125 000 2.200 2000 Cost of Goods Sold Wage Expense Depreciation Expense 2000 19.000 Dividends Declawd Accumated Depreciation Accounts Payabie 30000 16.000 ss co0 .000 5000 M000 e Common S Ratained Eaminge Sales Income rm Soe Company sag00 sag00 000 18 000 200000 s00 2e00 S3135 s000 35000 Required: a. Record all consolidation 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 Recard the basic consolidation entry Accounts Entry 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.) PIE CORPORATION AND SUBSIDIARY Worksheet for Consolidated Financial Statements December 31, 20x8 Consolidation Entries Slice Co Consolidated Pie Corp. DR CR Income atemes Sales Less COGS Less: Wage expense Less: Depreciation expenser Less Interest expense Less: Other expenses Less: Impaiment loss Income from Slice Company Consolidated net income NCI in net income Controlling Interest in Net Income Statement of Retained Eamings Beginning balance Net income Less: Dividends declared Ending Balance Balance Sheet Cash Accounts receivable Inventory Land Buildings and equipment Less Accumulated depreciation Investment in Sice Comapny Goodwill Total Assets Accounts payable Wages payable Notes payables Common stock Retained eamings NCI in NA of Slice Company Total Liabilities and Equity 0S 0$ PS-33 Consolidation Worksheet at End of First Year of Ownership LO 5-2 Pie Corporation acquired 75 percent of Slice Company's ownership on January 1, 20X8, for $96,000. At that date, the fair value of the noncontrolling interest was $32,000. The book value of Slice's net assets at acquisition was $100,000. The book values and fair values of Slice's assets and liabilities were equal, except for Slice's buildings and equipment, which were worth $20,000 more than book value. Accumulated depreciation on the buildings and equipment was $30,000 on the acquisition date. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, the management of Pie concluded at December 31, 20x8, that goodwill from its purchase of Slice shares had been impaired and the correct carrying amount was $2,500. Goodwill and goodwill impairment were assigned proportionately to the controlling and noncontrolling shareholders. on December 31, 20X8, are as follows: Trial balance data for Pie and Slice Debr 21 000 12.000 25000) 15,000 Cede De 4750m 70000 m Cash Accounts Receiagle eory Land 30000 B Cempe Epapment 150000 125 000 2.200 2000 Cost of Goods Sold Wage Expense Depreciation Expense 2000 19.000 Dividends Declawd Accumated Depreciation Accounts Payabie 30000 16.000 ss co0 .000 5000 M000 e Common S Ratained Eaminge Sales Income rm Soe Company sag00 sag00 000 18 000 200000 s00 2e00 S3135 s000 35000 Required: a. Record all consolidation 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 Recard the basic consolidation entry Accounts Entry 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.) PIE CORPORATION AND SUBSIDIARY Worksheet for Consolidated Financial Statements December 31, 20x8 Consolidation Entries Slice Co Consolidated Pie Corp. DR CR Income atemes Sales Less COGS Less: Wage expense Less: Depreciation expenser Less Interest expense Less: Other expenses Less: Impaiment loss Income from Slice Company Consolidated net income NCI in net income Controlling Interest in Net Income Statement of Retained Eamings Beginning balance Net income Less: Dividends declared Ending Balance Balance Sheet Cash Accounts receivable Inventory Land Buildings and equipment Less Accumulated depreciation Investment in Sice Comapny Goodwill Total Assets Accounts payable Wages payable Notes payables Common stock Retained eamings NCI in NA of Slice Company Total Liabilities and Equity 0S 0$