Pirate Corporation acquired 60 percent ownership of Ship Company on January 1, 20X8, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 40 percent of the book value of Ship Company. Accumulated depreciation on Buildings and Equipment was $75,000 on the acquisition date. Trial balance data at December 31, 20X8, for Pirate and Ship are as follows:

Ship purchased stock of Row Company on January 1, 20X8, for $30,000 and classified the investment as available-for-sale securities. The value of Rows securities increased to $40,000 at December 31, 20X8. Required: a. Record all consolidation entries needed to prepare a three-part consolidation worksheet as of December 31, 20X8.

b. Prepare a three-part consolidation worksheet for 20X9 in good form.

PIE CORPORATION AND SUBSIDIARY
Worksheet for Consolidated Financial Statements
December 31, 20X9
			Consolidation Entries
	Pie Corp.	Slice Co.	DR	CR	Consolidated
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

c. Prepare a consolidated balance sheet, income statement, and statement of comprehensive income for 20X8.

Pirate Corporation Debit Ship Compan Item Cash Accounts Receivable Invento Buildings &Equipment Investment in Row Company Investment in Ship Company Cost of Goods Sold Depreciation Expense Interest Expense Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Retained Earnings Other Comprehensive Income from Ship Company Credit Debit Credit $ 27,000 65,000 40,000 500,000 $ 8,000 22,000 30,000 235,000 40,000 ry 108,000 150,000 30,000 8,000 24,000 110,000 10,000 3,000 15,000 $140,000 63,000 100,000 200,000 208,000 $85,000 20,000 50,000 100,000 60,000 (OCI)-Unrealized Gain on Investments Unrealized Gain on Investments (OCI) Sales Income from Ship Company 6,000 10,000 148,000 220,000 15,000 $952,000 $952,000 $473,000 $473,000