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Pizza Corporation acquired 80 percent ownership of Slice Products Company on January 1, 20x1, for $153,000. On that date, the fair value of the noncontrolling

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Pizza Corporation acquired 80 percent ownership of Slice Products Company on January 1, 20x1, for $153,000. On that date, the fair value of the noncontrolling interest was $38,250, and Slice reported retained earnings of $50,000 and had $93,000 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. Item Cash & Receivables Inventory Land Buildings & Equipment Investment in Slice Products Company Cost of Goods Sold Depreciation Expense Inventory Losses Dividends Declared Accumulated Depreciation Accounts Payable Notes Payable Common Stock Retained Earnings Sales Income from Slice Products Company Pizza Slice Corporation Products Company Debit Credit Debit Credit $ 88,000 $ 72,000 268,000 103,000 90,000 90,000 510,000 168,000 177,860 116,000 50,000 23,000 13,000 13,eee 35,000 18,800 $ 201,600 $ 91,000 47,800 10,000 228,920 133,800 299,000 93,000 313, eee 83,000 203,000 110,000 28,940 $1,320,860 $1,320,860 $520,800 $520,800 6,000 7 Additional Information 1. On the date of combination, the fair value of Slice's depreciable assets was $48,250 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 $13,000 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.) Journal entry worksheet Record Pizza Corporation's 80% share of Slice Products Company's 20X5 income. Note: Enter debits before credits. Event Debit Credit General Journal Investment in Slice Products Company Income from Slice Products Company Record entry Clear entry View general journal Journal entry worksheet Record Pizza Corporation's 80% share of Slice Company's 20x5 dividend. Note: Enter debits before credits. Event General Journal Debit Credit 2 Record entry Clear entry View general journal Journal entry worksheet Record basic consolidation entry. Note: Enter debits before credits. Event Debit Credit 93,000 50,000 Accounts Common stock (Retained earnings Income from Slice Products Company INCI in Nl of Slice Products Company Dividends declared Investment in Slice Products Company INCI in NA of Slice Products Company Record entry Clear entry view consolidation entries 25 Consolidation Worksheet Entries

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