record :
-the basic consolidation entry
- the amortized excess value reclassification entry
-the excess value ( differential) reclassification entry
-the optional accumulated depreciation consolidation entry
Check Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20x8, for $107,000. At that date, the fair value of Saver's buildings and equipment was $18,000 more than the book value. Buildings and equipment are depreciated on a 10-year basis Although goodwill is not amortized, Price's management concluded at December 31, 20X8, that goodwill involved in its acquisition of Saver shares had been impaired and the correct carrying value was $2,900. Trial balance data for Price and Saver on December 31, 20X8, are as follows pped Price Corporation Saver Company Item Cash Accounts Receivable Debit Credit Debit Credit $ 31,500 78,000 98,000 36,000 358,000 107,500 130,000 40,000 24,000 11,000 12,500 32,000 33,000 24,000 37,000 27,000 151,000 Book Inventory Land Buildings&Equipment Investment in Saver Company rint rences Cost of Goods Sold 115,000 20,000 9,000 5,000 Wage Expense Depreciation Expense Interest Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Wages Payable Notes Payable Common Stock 6,000 25,500 $ 36,000 13,000 8,000 134,500 50,000 30,000 181,000 $137,000 34,000 14,000 132,000 189,000 166,500 260,000 26,000 Retained Earnings Sales Income from Saver Company $958,500 $958,500 $452,500 $452,500 Help Save& Exit Sube Chek b. Prepare a three-part consolidation worksheet for 20X8. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.) PRICE CORPORATION AND SUBSIDIARY Consolidated Financial Statements Worksheet December 31, 20X8 Consolidation Entries Price Corp. Saver Co. DR CR Consolidated Income Statement Sales Less: COGS Less: Wage expense Less: Depreciation expenser Less: Interest expense Less: Other expenses Less: Impairment loss Income from Saver Co. 0 0 S S Net Income Statement of Retained Earnings Saved Help Save Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance S C Assets Ipped Cash Accounts receivable Inventory ook Land rint Buildings & equipment fdridos Less: Accumulated depreciation Investment in Saver Co. Goodwill Total Assets 0$ 0 S Liabilities & Stockholders' Equity Accounts payable 4sges payable Notes payable Common stock Retained earmings $ 0 $ 0f 0 Total Liabilities & Equity Check my work Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $107,000. At that date, the fair value of Saver's buildings and equipment was $18,000 more than the book value. Buildings and equipment are depreciated on a 10-year basis Although goodwill is not amortized, Price's management concluded at December 31, 20X8, that goodwill involved in its acquisition of Saver shares had been impaired and the correct carrying value was $2,900. Trial balance data for Price and Saver on December 31, 20x8, are as follows: Price Corporation Debit $31,500 78,000 98,000 36,000 358,000 107,500 130,000 40,000 24,000 11,000 12,500 32,000 Saver Company Credit Item Credit Debit Cash 33,000 24,000 37,000 Accounts Receivable Inventory Land Buildings Investment in Saver Company Cost of Goods Sold Wage Expense Depreciation Expense Interest Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Wages Payable Notes Payable 27,000 151,000 Equipment 115,000 20,000 000 6 5,000 6,000 25,500 $137,000 34,000 14,000 $ 36,000 13,000 8,000 134,500 50,000 30,000 181,000 132,000 189,000 166,500 260,000 Common Stock Retained Earnings Sales Income from Saver Company 26,000 $958,500 $958,500 $452,500 $452,500 Required: a. Prepare the following consolidating entries needed to prepare a three-part consolidation worksheet as of December 31, 20X8. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list X Import a new list Record the basic consolidation entry. A Record the amortized excess value reclassification entry. Record the excess value (differential) reclassification C entry. Record the optional accumulated depreciation consolidation entry. Check my wor b. Prepare a three-part consolidation worksheet for 20X8. (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.) PRICE CORPORATION AND SUBSIDIARY Consolidated Financial Statements Worksheet December 31, 20X8 Consolidation Entries Price Corp. DR Saver Co. CR Consolidated Income Statement Sales Less: COGS Less: Wage expense Less: Depreciation expense Less: Interest expense Less: Other expenses Less: Impairment loss Income from Saver Co. 0 $ 0 Net Income Statement of Retained Earnings Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance 0 0 Assets Cash Accounts receivable Inventory Land Buildings & equipment Less: Accumulated depreciation Investment in Saver Co. Goodwill Total Assets S 0 S Liabilities & Stockholders' Equity Accounts payable Wages payable Notes payable Common stock Retained eamings Total Liabilities & Equity S 0 $
