Please help... I need a walk through on how to complete this assignment. Step by Step would be best if at all possible.
Consolidation Worksheet Entries:
A = Record the basic consolidation entry
B = Record the amortized excess value reclassification entry.
C = Record the excess value (differential) reclassification entry.
D = Record the optional accumulated depreciation consolidation entry.
E = Record the entry to reverse last year's deferral.
F = Record the deferral of the unrealized profit on inventory transfers from 20X2.
G = Record the deferral of this year's unrealized profits on inventory transfers.
6/4/2019 Assignment Print View 2. Award: 25.00 points Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $112,700. At that date, the noncontrolling interest had a fair value of $48,300 and Soda reported $71,000 of common stock outstanding and retained earnings of $31,000. The differential is assigned to buildings and equipment, which had a fair value $28,000 higher than book value and a remaining 10-year life, and to patents, which had a fair value $31,000 higher than book value and a remaining life of five years at the date of the business combination. Trial balances for the companies as of December 31, 20X3, are as follows; Pop Corporation Soda Company Item Cash & Accounts Receivable Debit Debit $ 16,400 Credit 522,600 Credit Inventor $66,000 36,000 Land Buildings & Equipment 31,000 350,00 41,000 261,000 Investment in Soda Company Cost of Goods Sold 17,200 Depreciation Expense 87,000 80,800 20,00 15,000 Interest Expense 17,000 6,200 Dividends Declared Accumulated Depreciation 31,000 141.000 16,000 $ 85.000 Accounts Payable 93,400 16.00 Bonds Payable Bond Premium 219,250 94,000 Common Stock 121,000 1,600 28,900 71,000 Retained Earnings Sales 261,000 61.000 10,600 130,000 Other Income Income from Soda Company 10,450 $985,600 $985,600 $478,600 $478,600 On December 31, 20X2, Soda purchased inventory for $31,500 and sold it to Pop for $45,000. Pop resold $30,000 of the inventory (i.e., $30,000 of the $45,000 acquired from Soda) during 20X3 and had the remaining balance in inventory at December 31, 20X3. During 20X3, Soda sold inventory purchased for $56,000 to Pop for $80,000, and Pop resold all but $25,000 of its purchase. On March 10, 20X3, Pop sold inventory purchased for $15,000 to Soda for $30,000. Soda sold all but $7,800 of the inventory prior to December 31, 20X3. Assume Pop uses the fully adjusted equity method, that both companies use straight-line depreciation, and that no property, plant, and equipment has been purchased since the acquisition. Required: a. Prepare all consolidation entries needed to prepare a full set of consolidated financial statements at December 31, 20X3, for Pop and Soda. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) ezto.mheducation.com/hm.tpx?todo=c15SinglePrintView&singleQuestionNo=2.&postSubmissionView=132527 10254035908&wid=1325271118746467... 1/36/4/2019 Assignment Print View view transaction list transaction list No Entry Accounts Debit Credit Common stock 71,000 Retained earnings 61,000 Income from Soda Company NCI in NI of Soda Company Dividends declared 16,000 Investment in Soda Company NCI in NA of Soda Company B 2 Amortization expense Depreciation expense 2,800 Income from Soda Company NCI in NI of Soda Company C 3 Buildings and equipmen Patents Accumulated depreciation Investment in Soda Company NCI in NA of Soda Company D 4 Accumulated depreciation Buildings and equipment E 5 Investment in Soda Compan NCI in NA of Soda Company Cost of goods sold Investment in Soda Company NCI in NA of Soda Company b. Prepare a three-part consolidation worksheet for 20X3. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.) ezto.mheducation.com/hm.tpx?todo=c15SinglePrintView&singleQuestionNo=2.&postSubmissionView=13252710254035908&wid=1325271118746467 ... 2/36/4/2019 Assignment Print View POP CORPORATION & SUBSIDIARY Consolidated Financial Statement Worksheet For 20X3 Consolidation Entries Pop Corp. Soda Co. DR CR Income Statement Consolidated Sales 261,000 30,000 Other Incom 391,000 Less: COGS 10.600 187,000 10,600 80,800) Less: Depreciation Expense 20,000) (267,800) Less: Interest Expense 15,000) 2.800 37,800) 17,000) (6,200) Less: Amortization Expense 23.200) income from Soda Compan Consolidated Net Income 47,600 28,000 2,800 0! NCI in Net Income 2.800 Controlling Interest in Net Income 47.600 $ 28,000 $ 2,800| $ Statement of Retained Earnings o S 12,800 Beginning balance Net income 7,600 28,000 2,800 Less: Dividends declared 72,800 Ending Balance $ 47,600 $ Balance Sheet 28,000 $ 2,800| $ o S . 72.800 Cash and Accounts Receivabl $ 16,400 $ Inventory 22.600 39,000 66,000 Land $6,000 31,000 202,000 Buildings & Equipment $1,000 50,000 261,000 122,000 Less: Accumulated Depreciation 611,000 Investment in Soda Company | Patents Total Assets $ 613,400 $ 360,600 $ Accounts Payable ol s 0 $ 974,000 Bonds Payable -19,250 Bonds Premium 94,000 313,250 Common Stock 1,600 1,600 21,000 Retained Earnings 71,00 1,000 17,600 21,000 NCI in NA of Soda Company 18,000 2,800 72,800 Total Liabilities & Equity 387,850 5 194,600 $ 73,800 $ 508,650 References Consolidating Entries Learning Objective: 06-03 Prepare equity-method journal entries and consolidation entries for the consolidation of a subsidiary following downstream inventory transfers. Difficulty: 3 Learning Objective: 06-04 Prepare equity-method journal entries and consolidation entries for the consolidation of a subsidiary following upstream nventory transfers. ezto.mheducation.com/hm.tpx?todo=c15SinglePrintView&singleQuestionNo=2.&postSubmissionView=13252710254035908&wid=1325271118746467... 3/3
