Pillow Corporation acquired 80 percent ownership of Sheet Company on January 1,207, for $173,000. At that date, the fair value of :he noncontrolling interest was $43,250. The trial balances for the two companies on December 31,207, included the following amounts: Additional Information 1. On January 1,207, Sheet reported net assets with a book value of $150,000 and a fair value of $191,250. Accumulated depreciation on Buildings and Equipment was $60,000 on the acquisition date. 2. Sheet's depreciable assets had an estimated economic life of 11 years on the date of combination. Goodwill of $25,000 was recorded at the acquisition. 3. Pillow used the equity method in accounting for its investment in Sheet. 4. Detailed analysis of receivables and payables showed that Sheet owed Pillow $16,000 on December 31,207. Prepare all journal entries recorded by Pillow with regard to its investment in Sheet during 207. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Record the initial investment in Sheet Company. Note: Enter debits before credits. Journal entry worksheet Record Pillow Corporation's 80% share of Sheet Company's 207 income. Note: Enter debits before credits. Journal entry worksheet Record Pillow Corporation's 80% share of Sheet Company's 207 dividend. Note: Enter debits before credits. Journal entry worksheet Record the amortization of the excess acquisition price. Note: Enter debits before credits. Consolidation Worksheet Entries C D Note: Enter debits before credits. Consolidation Worksheet Entries Record the amortized excess value reclassification entry. Note: Enter debits before credits. Consolidation Worksheet Entries Record the excess value (differential) reclassification entry. Note: Enter debits before credits. Consolidation Worksheet Entries Record the entry to eliminate the intercompany accounts. Note: Enter debits before credits. Consolidation Worksheet Entries A Record the optional accumulated depreciation consolidation entry. Note: Enter debits before credits. c. Prepare a three-part consolidation worksheet as of December 31,207. Note: Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indi a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accou multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of th worksheet. Pillow Corporation acquired 80 percent ownership of Sheet Company on January 1,207, for $173,000. At that date, the fair value of :he noncontrolling interest was $43,250. The trial balances for the two companies on December 31,207, included the following amounts: Additional Information 1. On January 1,207, Sheet reported net assets with a book value of $150,000 and a fair value of $191,250. Accumulated depreciation on Buildings and Equipment was $60,000 on the acquisition date. 2. Sheet's depreciable assets had an estimated economic life of 11 years on the date of combination. Goodwill of $25,000 was recorded at the acquisition. 3. Pillow used the equity method in accounting for its investment in Sheet. 4. Detailed analysis of receivables and payables showed that Sheet owed Pillow $16,000 on December 31,207. Prepare all journal entries recorded by Pillow with regard to its investment in Sheet during 207. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Record the initial investment in Sheet Company. Note: Enter debits before credits. Journal entry worksheet Record Pillow Corporation's 80% share of Sheet Company's 207 income. Note: Enter debits before credits. Journal entry worksheet Record Pillow Corporation's 80% share of Sheet Company's 207 dividend. Note: Enter debits before credits. Journal entry worksheet Record the amortization of the excess acquisition price. Note: Enter debits before credits. Consolidation Worksheet Entries C D Note: Enter debits before credits. Consolidation Worksheet Entries Record the amortized excess value reclassification entry. Note: Enter debits before credits. Consolidation Worksheet Entries Record the excess value (differential) reclassification entry. Note: Enter debits before credits. Consolidation Worksheet Entries Record the entry to eliminate the intercompany accounts. Note: Enter debits before credits. Consolidation Worksheet Entries A Record the optional accumulated depreciation consolidation entry. Note: Enter debits before credits. c. Prepare a three-part consolidation worksheet as of December 31,207. Note: Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indi a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accou multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of th worksheet
