P6-32 Consolidated Balance Sheet Worksheet [AICPA Adapted] LO 6-3 The December 31, 20X6, condensed balance sheets of Pine Corporation and its 90 percent-owned subsidiary, Slim Corporation, are presented in the accompanying worksheet. Additional Information 1. Pine's investment in Slim was acquired for $1,170,000 cash on January 1, 20X6, and is accounted for by the equity method. The fair value of the noncontrolling interest at that date was $130,000. 2. At January 1, 20X6, Slim's retained earnings amounted to $600,000, and its common stock amounted to $200,000. 3. Slim declared a $1,000 cash dividend in December 20X6, payable in January 20X7. 4. Slim borrowed $100,000 from Pine on June 30, 20X6, with the note maturing on June 30, 20X7, at 10 percent interest. Correct interest accruals have been recorded by both companies. 5. During 20X6, Pine sold merchandise to Slim at an aggregate invoice price of $300,000, which included a profit of $60,000. At December 31, 20X6, Slim had not paid Pine for $90,000 of these purchases, and 5 percent of the total merchandise purchased from Pine still remained in Slim's inventory. Assume Pine uses the fully adjusted equity method. Page 294 6. Pine's excess cost over book value of its investment in Slim has appropriately been identified as goodwill. At December 31, 20X6, Pine's management reviewed the amount attributed to goodwill and found no evidence of impairment. Required Complete the accompanying worksheet for Pine and its subsidiary, Slim, at December 31, 20X6. PINE CORPORATION AND SLIM CORPORATION Consolidated Balance Sheet Worksheet December 31, 20X6 Pine Corporation Consolidation Slim Corporation Entries Debit Credit Consolidated Assets Cash $ 105,000 $ 15,000 Accounts & Other Current Receivables 410,000 120,000 Merchandise Inventory Plant & Equipment, Net 920,000 670,000 1,000,000 400,000 Investment in Slim Corporation 1,257,000 Totals $3,692,000 $1,205,000 Liabilities & Stockholders' Equity: Accounts Payable & Other Current Liabilities $ 140,000 $ 305,000 Common Stock ($10 par) Retained Earnings 500,000 3,052,000 200,000 700,000 Totals $3,692,000 $1,205,000