Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please do all journal entries thx Pizza Corporation purchased 100 percent of the common stock of Slice Corporation on January 1,20X2, by issuing 49,000 shares

Please do all journal entries thx
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Pizza Corporation purchased 100 percent of the common stock of Slice Corporation on January 1,20X2, by issuing 49,000 shares of its $7 par value common stock. The market price of Pizza's shares at the date of issue was $24. Slice reported net assets with a book value of $1,088,500 on that date. The amount paid in excess of the book value of Slice's net assets was attributed to the increased value of patents held by Slice with a remaining useful life of 7 years. Slice reported net income of $59,000, paid dividends of $24,000 in 202, reported a net loss of $47,000, and paid dividends of $14,000 in 203. Required: Assuming that Pizza Corporation uses the equity method in accounting for its investment in Slice Corporation, prepare all journal entries for Pizza for 202 and 203. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. uming that Pizza Corporation uses the equity method in accounting for its investment in Slic ies for Pizza for 202 and 203. e: If no entry is required for a transaction/event, select "No journal entry required" in the Journal entry worksheet 6 7 Record the dividend from Slice Corporation for 202. Note: Enter debits before credits. Journal entry worksheet Record the equity-method income or loss for 202. Note: Enter debits before credits. tries for Pizza for 202 and 203. ote: If no entry is required for a transaction/event, select "No journai entry required" Journal entry worksheet 1 7 Record the amortization of the differential value for 202. Note: Enter debits before credits. Journal entry worksheet Record the dividend from Slice Corporation for 203. Note: Enter debits before credits. Journal entry worksheet Record the equity-method income or loss for 203. Note: Enter debits before credits. Journal entry worksheet 12 5 Record the amortization of the differential value for 203. Note: Enter debits before credits

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Harold M. Sollenberger, Arnold Schneider, Lane K. Anderson

9th Edition

0538842822, 978-0538842822

More Books

Students also viewed these Accounting questions

Question

What are the objectives of job evaluation ?

Answered: 1 week ago

Question

Write a note on job design.

Answered: 1 week ago

Question

Compute the derivative of f(x)cos(-4/5x)

Answered: 1 week ago

Question

Discuss the process involved in selection.

Answered: 1 week ago