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: Soda Company Debit Credit $ 23,600 37,000 42,000 262,000 Iten Cash & Accounts Receivable Inventory Land Buildings 6 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 Credit 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 $490,600 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 (i.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 2012 Den enint inventana nuehacer for 16 in Cala nr 22 Cada cold all but CROf the internet 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 (.e., $29,000 of the $50,000 acquired from Soda) during 20x3 and had the remaining balance in inventory at December 31, 20X3. -nces 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 Entry Credit No A Accounts Common stock Commt Retained earnings Income from Soda Company NCI in Nl of Soda Company Dividends declared Investment in Soda Company NCI IN NA of Soda Company Debit 70,000 62,000 18,540 9,660 17,000 9,400 2,200 Amortization expense Depreciation expense Income from Soda Company NCI in NI of Soda Company 5,120 3,480 Buildings and equipment Patents Accumulated depreciation 22,000 28,200 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.) nces POP CORPORATION & SUBSIDIARY Consolidated Financial Statement Worksheet For 20X3 Consolidation Entries Pop Corp. Soda Co. DR CR Consolidated Income Statement Sales $ $ 140,000 262,000 11.600 (188.000) (81.800) (25,000) (18,000)| (20,000) (7.200) Other Income Loss: 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 402,000 11,600 (269,800) (45,000) (25.200) (9.400) 10,420 74,6201 10.4207 53,020 9,400 P 9. 400 31,000 0 $ 53,020 $ 31,000 $ 9,400 $ 0 $ 74,620 ch $ 53,020 $ 31,000 $ 9,400 $ 0 $ 74,620 $ $ $ $ 62,000 9,400 129,900 53,020 (32,000) 150,920 62,000 31,000 (17,000) 76,000 129,900 74,620 (32,000) 172,520 17,000 17,000 $ $ $ 71,400 $ $ $ $ $ ces 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 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 82,000 380,000 (142,000) 117,100 23,600 37,000 42,000 262,000 (90,000) 50.000 22,000/ 50,000 14,000 28,200 114,200 $ $ 50.000 $ $ 601,500 $ 94,4001 $ 234,180 $ $ 274,600 37,000 S90,000 1,600 70,000 76,000 41,000 204,000 124,000 594,000 (182,000) 131,100 28,200 940,300 131,400 324,180 1.600 122.000 172,525+ (6,000) 745,700 122,000 150,920 17.000 70,000 71.400 6,000 147.400 $ 601,500 $ 274,600 $ $ 17,000 $ 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: Soda Company Debit Credit $ 23,600 37,000 42,000 262,000 Iten Cash & Accounts Receivable Inventory Land Buildings 6 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 Credit 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 $490,600 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 (i.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 2012 Den enint inventana nuehacer for 16 in Cala nr 22 Cada cold all but CROf the internet 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 (.e., $29,000 of the $50,000 acquired from Soda) during 20x3 and had the remaining balance in inventory at December 31, 20X3. -nces 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 Entry Credit No A Accounts Common stock Commt Retained earnings Income from Soda Company NCI in Nl of Soda Company Dividends declared Investment in Soda Company NCI IN NA of Soda Company Debit 70,000 62,000 18,540 9,660 17,000 9,400 2,200 Amortization expense Depreciation expense Income from Soda Company NCI in NI of Soda Company 5,120 3,480 Buildings and equipment Patents Accumulated depreciation 22,000 28,200 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.) nces POP CORPORATION & SUBSIDIARY Consolidated Financial Statement Worksheet For 20X3 Consolidation Entries Pop Corp. Soda Co. DR CR Consolidated Income Statement Sales $ $ 140,000 262,000 11.600 (188.000) (81.800) (25,000) (18,000)| (20,000) (7.200) Other Income Loss: 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 402,000 11,600 (269,800) (45,000) (25.200) (9.400) 10,420 74,6201 10.4207 53,020 9,400 P 9. 400 31,000 0 $ 53,020 $ 31,000 $ 9,400 $ 0 $ 74,620 ch $ 53,020 $ 31,000 $ 9,400 $ 0 $ 74,620 $ $ $ $ 62,000 9,400 129,900 53,020 (32,000) 150,920 62,000 31,000 (17,000) 76,000 129,900 74,620 (32,000) 172,520 17,000 17,000 $ $ $ 71,400 $ $ $ $ $ ces 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 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 82,000 380,000 (142,000) 117,100 23,600 37,000 42,000 262,000 (90,000) 50.000 22,000/ 50,000 14,000 28,200 114,200 $ $ 50.000 $ $ 601,500 $ 94,4001 $ 234,180 $ $ 274,600 37,000 S90,000 1,600 70,000 76,000 41,000 204,000 124,000 594,000 (182,000) 131,100 28,200 940,300 131,400 324,180 1.600 122.000 172,525+ (6,000) 745,700 122,000 150,920 17.000 70,000 71.400 6,000 147.400 $ 601,500 $ 274,600 $ $ 17,000 $