Question
Pizza Corporation purchased 100 percent of the common stock of Slice Corporation on January 1, 20X2, by issuing 47,000 shares of its $7 par value
Pizza Corporation purchased 100 percent of the common stock of Slice Corporation on January 1, 20X2, by issuing 47,000 shares of its $7 par value common stock. The market price of Pizzas shares at the date of issue was $26. Slice reported net assets with a book value of $1,106,000 on that date. The amount paid in excess of the book value of Slices net assets was attributed to the increased value of patents held by Slice with a remaining useful life of 8 years. Slice reported net income of $59,000, paid dividends of $29,000 in 20X2, reported a net loss of $47,000, and paid dividends of $19,000 in 20X3. Required: Assuming that Pizza Corporation uses the equity method in accounting for its investment in Slice Corporation, prepare all journal entries for Pizza for 20X2 and 20X3. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
What did I do wrong for 1d and 2c?
Answer is complete but not entirely correct. No Credit Event (1a) Debit 1,222,000 1 General Journal Investment in Slice Corporation Common stock Additional paid-in capital 329,000 893,000 2 (1b) 29,000 Cash Investment in Slice Corporation 29,000 3 (10) 59,000 Investment in Slice Corporation Income from Slice Corporation 59,000 4 (10) 13,250 Income from Slice Corporation Investment in Slice Corporation >> 13,250 5 (2a) 19,000 Cash Investment in Slice Corporation 19,000 6 (2b) > 47,000 Income from Slice Corporation Investment in Slice Corporation 47,000 7 (2c) 13,250 X Income from Slice Corporation Investment in Slice Corporation 13,250
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