P5-34 Consolidation Worksheet at End of Second Year of Ownership LO 5-2 ces Ple 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 sace 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. Investment in Slice Co. Stock $96,375. No additional impairment occurred in 20X9 That balance data for Ple and Slice on December 31, 20X9. are as follows: Pie Corporation Sl Company Iten Debit Credit Debit Credit Cash 68,500 $ 32,000 Accounts Receivable 85,000 14,000 Inventory 92.000 24,000 Land 50,000 25,000 Buildings & Equipment 350,000 150,000 Investment in Slice Company 106,875 Cost of Goods Sold 145,000 114,00 Wage Expense 35.000 20,000 Depreciation Expense 25,000 10,000 Interest Expense 12,000 4.000 Other Expenses 23,000 16,000 Dividends Declared 30,000 20,000 Accumulated Depreciation $ 170,000 $ 50,000 Accounts Payable 51,800 15.000 Wages Payable 14.000 6.000 Notes Payable 150,000 50.000 Common Stock 200,000 50,000 Retained Earnings 126,825 43.000 Sales 290,000 200,000 Income from Slice Company 25 se $1,027.375 $1,027,375 5429.000 5429,000 Required: a Record all consolidation entries needed to prepare a three part consolidation worksheet as of December 31 20x9 If no entry is required for a transaction/event, select "No journal entry required in the first account feld) Consolidation Worksheet Entries B D > Record the basic consolidation entry. Note: Enter debits before credits. Entry Accounts Debit Credit 1 Record entry Clear entry view consolidation entries PIE CORPORATION AND SUBSIDIARY Worksheet for Consolidated Financial Statements December 31, 2009 Consolidation Entries Pie Corp. Slice Co. DR CR Consolidated $ 0 $ 0 s 0 S 0 s 0 S 0 $ 0 S 0 $ 0 $ 0 $ 0 $ 0 $ os os 0 Income Statement Sales Less. COGS Less Wage expense Less Depreciation expense Less Interest expense Less Other expenses Income from Slice Company Consolidated net income NCI in net income Controlling Interest in Net Income Statement of Retained Earnings Beginning balance Net income Less Dividends declared Ending Balance Balance Sheet Cash Accounts receivable Inventory Land Buildings and equipment Less Accumulated depreciation Investment in Slice Company Goodwill Total Assets Accounts payable Wages payable Notes payable Common stock Retained earnings NCI in NA of Slice Company Total Liabilities and Equity $ 05 0 S 0 s os 0 $ 05 on 0 c Prepare a consolidated balance sheet income statement, and retained earnings statement for 20x9 (Amounts to be deducted should be Indicated with a minus sign.) PIE CORPORATION AND SUBSIDIARY Consolidated Balance Sheet December 31, 20X9 Assets COS $ 0 Total Assets Liabilities Stockholders' Equity Controlling interest Total Controlling interest 0 Total Stockholder's equity Total Liabilities and Stockholders' Equity 5 0 ht PIE CORPORATION AND SUBSIDIARY Consolidated Income Statement nces Year Ended December 31, 20X9 0 Total expenses Consolidated net income 0 Income to controlling interest $ 0 PIE CORPORATION AND SUBSIDIARY Consolidated Retained Earnings Statement Year Ended December 31, 2069 Retained Earnings, January 1, 20x9 Income to Controlling Interest, 20x9 $ Dividends Declared, 20x9 Retained Earnings, December 31, 20x9 0