Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $114,800. At that date, the noncontrolling interest had a fair value of $49,200 and Soda reported $70,000 of common stock outstanding and retained earnings of $25,000. The differential is assigned to buildings and equipment, which had a fair value $22,000 higher than book value and a remaining 10-year life, and to patents, which had a fair value $47.000 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 Debit Credit Soda Company Debit Credit $ 23.600 37.000 42,000 262,000 Item Cash Accounts Receivable Inventory Land Buildings & Equipment Investment in Soda Company Cost of Goods Sold Depreciation Expense Interest Expense Dividends Declared Accumulated Depreciation Accounts Payable Ronds Payable Bond Premium Common Stock Retained Earnings 17,400 167.000 82.000 360,000 117, 100 188,000 25,000 18,000 32,000 81,800 20.000 7.200 17,000 142,000 94.400 234,180 $ 90.000 37.000 90,000 1.600 70.000 62.000 140,000 122,000 129.900 262,000 11.600 10, 420 $1,006,500 $1,006,500 Other Income Income from Soda Company $490,600 $490.600 On December 31, 20X2, Soda purchased Inventory for $30,000 and sold it to Pop for $50,000. Pop resold $29.000 of the inventory (Le., $29,000 of the $50,000 acquired from Soda) during 20x3 and had the remaining balance in inventory at December 31, 20X3. On December 31, 20X2, Soda purchased inventory for $30,000 and sold it to Pop for $50,000. Pop resold $29,000 of the inventory (l.e., $29,000 of the $50,000 acquired from Soda) during 20x3 and had the remaining balance in inventory at December 31, 20X3. During 20X3, Soda sold inventory purchased for $54,000 to Pop for $90,000, and Pop resold all but $26,000 of its purchase. On March 10, 20X3, Pop sold inventory purchased for $16,000 to Soda for $32,000. Soda sold all but $8,000 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 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.) view transaction list Consolidation Worksheet Entries B C D E F G Record the basic consolidation entry. Note: Enter debits before credits Entry Accounts Debit Credit Check my work 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.) POP CORPORATION & SUBSIDIARY Consolidated Financial Statement Worksheet For 20X3 Consolidation Entries Pop Corp. Soda Co. DR CR Consolidated Income Statement Sales Other Income Less: COGS Less: Depreciation Expense Less: Interest Expense Less: Amortization Expenses Income from Soda Company Consolidated Net Income NCI in Net Income Controlling Interest in Net Income Statement of Retained Earnings Beginning balance 00 - $ 0 $ 0 $ 0 $ 0 S Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $114,800. At that date, the noncontrolling interest had a fair value of $49,200 and Soda reported $70,000 of common stock outstanding and retained earnings of $25,000. The differential is assigned to buildings and equipment, which had a fair value $22,000 higher than book value and a remaining 10-year life, and to patents, which had a fair value $47.000 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 Debit Credit Soda Company Debit Credit $ 23.600 37.000 42,000 262,000 Item Cash Accounts Receivable Inventory Land Buildings & Equipment Investment in Soda Company Cost of Goods Sold Depreciation Expense Interest Expense Dividends Declared Accumulated Depreciation Accounts Payable Ronds Payable Bond Premium Common Stock Retained Earnings 17,400 167.000 82.000 360,000 117, 100 188,000 25,000 18,000 32,000 81,800 20.000 7.200 17,000 142,000 94.400 234,180 $ 90.000 37.000 90,000 1.600 70.000 62.000 140,000 122,000 129.900 262,000 11.600 10, 420 $1,006,500 $1,006,500 Other Income Income from Soda Company $490,600 $490.600 On December 31, 20X2, Soda purchased Inventory for $30,000 and sold it to Pop for $50,000. Pop resold $29.000 of the inventory (Le., $29,000 of the $50,000 acquired from Soda) during 20x3 and had the remaining balance in inventory at December 31, 20X3. On December 31, 20X2, Soda purchased inventory for $30,000 and sold it to Pop for $50,000. Pop resold $29,000 of the inventory (l.e., $29,000 of the $50,000 acquired from Soda) during 20x3 and had the remaining balance in inventory at December 31, 20X3. During 20X3, Soda sold inventory purchased for $54,000 to Pop for $90,000, and Pop resold all but $26,000 of its purchase. On March 10, 20X3, Pop sold inventory purchased for $16,000 to Soda for $32,000. Soda sold all but $8,000 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 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.) view transaction list Consolidation Worksheet Entries B C D E F G Record the basic consolidation entry. Note: Enter debits before credits Entry Accounts Debit Credit Check my work 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.) POP CORPORATION & SUBSIDIARY Consolidated Financial Statement Worksheet For 20X3 Consolidation Entries Pop Corp. Soda Co. DR CR Consolidated Income Statement Sales Other Income Less: COGS Less: Depreciation Expense Less: Interest Expense Less: Amortization Expenses Income from Soda Company Consolidated Net Income NCI in Net Income Controlling Interest in Net Income Statement of Retained Earnings Beginning balance 00 - $ 0 $ 0 $ 0 $ 0 S