Pizza Corporation acquired 80 percent ownership of Slice Products Company on January 1, 20X1, for $148,000. On that date. the fair value of the noncontrolling Interest was $37,000, and Slice reported retained earnings of $43.000 and had $95,000 of common stock outstanding. Pizza has used the equity method In accounting for its Investment In Slice. Trial balance data for the two companies on December 31, 20X5, are as follows: Pizza Slice Corporation Products Company Iten Debit Credit Debit Credit Cash & Receivables 86, 080 $ 84,090 Inventory 275, 680 94, 809 Land 86,090 Buildings & Equipment 157,090 Investment In Slice Products Company 101,280 Cost of Goods Sold 113,680 43,060 Depreciation Expense 22, 090 12,200 Inventory Losses 12, 089 5,090 Dividends Declared 32,680 22,060 Accumulated Depreciation $ 199,806 $ 84,060 Accounts Payable 60, 206 15, 060 Notes Payable 207,960 119,060 Common Stock 295, 060 95,060 Retained Earnings 309, 806 85. 060 Sales 210, 006 105,060 Income from Slice Products Company 32, 240 $1,313,280 $1, 313, 260 $503,080 $503,080 Additional Information 1. On the date of combination, the fair value of Slice's depreciable assets was $47,000 more than book value. The accumulated depreciation on these assets was $10,000 on the acquisition date. The differential assigned to depreciable assets should be written off over the following 10-year period. 2. There was $11,000 of intercorporate receivables and payables at the end of 20X5. Required: a. Prepare all journal entries that Pizza recorded during 20X5 related to its Investment In Slice. (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.)b. Prepare all consolidation entries needed to prepare consolidated statements for 20X5. (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) Answer is not complete. No Event Accounts Debit Credit A 1 Common stock 95,000 Retained earnings 43,000 Income from Slice Products Company 86,000 NOI in NI of Slice Products Company Dividends declared 22,000 Investment in Slice Products Company NCI in NA of Slice Products Company B 2 Depreciation expense 4,700 Income from Slice Products Company 3,760 NOI in NI of Slice Products Company O 940 C 3 Buildings and equipment 47,000 Accumulated depreciation 22,000 Investment in Slice Products Company 20,300 x NCI in NA of Slice Products Company 4,700 D 4 Accounts payable 11,000 Cash and receivables 11,000
