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: Credit Soda Company Debit Credit $ 23,600 37.000 42,000 262,000 Iten Cash & Mcounts Receivable Inventory Land Building Equipment Investment in Soda Company Cost of Goods Sold Depreciation Expense Interest Expense Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Bond Premium Common Stock Retained Earnings Sales Other Income Income from Soda Company Pop Corporation Debit 17,400 167.000 82,000 360,000 117, 100 188,000 25.000 18,000 32,000 142,000 94,400 234,180 81,800 20.000 7,200 17,000 $ 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 $490,600 490.00 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 (i... $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 in Pon for 90 D A RA 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 fi.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 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.) view transaction list transaction list No Entry Accounts Debit Credit 70,000 62,000 Common stock Retained earnings Income from Soda Company NCI in Nl of Soda Company Dividends declared Investment in Soda Company NCI in NA of Soda Company 17,000 2 Depreciation expense NCI in Nl of Soda Company Buildings and equipment Investment in Soda Company NCI in NA of Soda Company POP CORPORATION & SUBSIDIARY Consolidated Financial Statement Worksheet For 20X3 Consolidation Entries Pop Corp. Soda Co. LTDR MI C R Consolidated Income Statement Sales $ 140,000 $ 262,000 11,600 (188,000) (25,000) (18,000) (81,800) 402,000 11,600 (269,800) (45,000) (25,200) (20,000) (7.200) 10,420 53.020 10,420 84,020 31,000 Other Income Less: COGS Less: Depreciation Expense Less: Interest Expense Less: Amortization Expense Income from Soda Company Consolidated Net Income NCI In Net Income Controlling Interest in Net Income Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance Balance Sheet Cash and Accounts Receivable Inventory $ 53,020 $ 31,000 $ 0 $ 84,020 $ $ D $ 129,900 53,020 (32,000) 150,920 62,000 31,000 (17,000) 76,000 191,900 84.020 (49,000) 226,920 $ $ $ 0 $ 0 $ $ 17,4007 S 167,0001 23,600 37,000 41.000 204,000 53,020 (32,000) 150,920 31,000 (17,000) 76,000 84,020 (49,000) 226,920 $ $ $ 1 0 $ 0 $ $ $ Net income Less: Dividends declared Ending Balance Balance Sheet Cash and Accounts Receivable Inventory Land Buildings & Equipment Less: Accumulated Depreciation Investment in Soda Company Patents Total Assets Accounts Payable Bonds Payable Bonds Premium Common Stock Retained Earnings NCI in NA of Soda Company Total Liabilities & Equity 17,400 167,000 82,000 360,000 (142,000) 117,100 23,600 37,000 42,000 262,000 (90,000) 41,000 204,000 124,000 622,000 (232,000) 117,100 $ 0 $ $ $ 0 601,500 94,400 234,180 $ $ | $ 274,600 37,000 90,000 1,600 70.000 76,000 876,100 131,400 324,180 1,600 192,000 226,920 122.000 150,920 $ 601,500 $ 274,600 $ 0 $ 0 S 876,100 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: Credit Soda Company Debit Credit $ 23,600 37.000 42,000 262,000 Iten Cash & Mcounts Receivable Inventory Land Building Equipment Investment in Soda Company Cost of Goods Sold Depreciation Expense Interest Expense Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Bond Premium Common Stock Retained Earnings Sales Other Income Income from Soda Company Pop Corporation Debit 17,400 167.000 82,000 360,000 117, 100 188,000 25.000 18,000 32,000 142,000 94,400 234,180 81,800 20.000 7,200 17,000 $ 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 $490,600 490.00 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 (i... $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 in Pon for 90 D A RA 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 fi.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 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.) view transaction list transaction list No Entry Accounts Debit Credit 70,000 62,000 Common stock Retained earnings Income from Soda Company NCI in Nl of Soda Company Dividends declared Investment in Soda Company NCI in NA of Soda Company 17,000 2 Depreciation expense NCI in Nl of Soda Company Buildings and equipment Investment in Soda Company NCI in NA of Soda Company POP CORPORATION & SUBSIDIARY Consolidated Financial Statement Worksheet For 20X3 Consolidation Entries Pop Corp. Soda Co. LTDR MI C R Consolidated Income Statement Sales $ 140,000 $ 262,000 11,600 (188,000) (25,000) (18,000) (81,800) 402,000 11,600 (269,800) (45,000) (25,200) (20,000) (7.200) 10,420 53.020 10,420 84,020 31,000 Other Income Less: COGS Less: Depreciation Expense Less: Interest Expense Less: Amortization Expense Income from Soda Company Consolidated Net Income NCI In Net Income Controlling Interest in Net Income Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance Balance Sheet Cash and Accounts Receivable Inventory $ 53,020 $ 31,000 $ 0 $ 84,020 $ $ D $ 129,900 53,020 (32,000) 150,920 62,000 31,000 (17,000) 76,000 191,900 84.020 (49,000) 226,920 $ $ $ 0 $ 0 $ $ 17,4007 S 167,0001 23,600 37,000 41.000 204,000 53,020 (32,000) 150,920 31,000 (17,000) 76,000 84,020 (49,000) 226,920 $ $ $ 1 0 $ 0 $ $ $ Net income Less: Dividends declared Ending Balance Balance Sheet Cash and Accounts Receivable Inventory Land Buildings & Equipment Less: Accumulated Depreciation Investment in Soda Company Patents Total Assets Accounts Payable Bonds Payable Bonds Premium Common Stock Retained Earnings NCI in NA of Soda Company Total Liabilities & Equity 17,400 167,000 82,000 360,000 (142,000) 117,100 23,600 37,000 42,000 262,000 (90,000) 41,000 204,000 124,000 622,000 (232,000) 117,100 $ 0 $ $ $ 0 601,500 94,400 234,180 $ $ | $ 274,600 37,000 90,000 1,600 70.000 76,000 876,100 131,400 324,180 1,600 192,000 226,920 122.000 150,920 $ 601,500 $ 274,600 $ 0 $ 0 S 876,100