Save Exit P4-33 Consolidation Worksheet at End of First Year of Ownership LO 4-5 Check my Price Corporation acquired 100 percent ownership of Saver Company on January , 20x8, for $168,000. At that date, the fair value of Saver's buildings and equipment was $36,000 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, 20XB, that goodwill involved in its acquisition of Saver shares had been impaired and the correct carrying value was $6,500 Trial balance data for Price and Saver on December 31, 20x8, are as follows Rice Corporation Davor Company Item bebit Credit Debt Cash 23.500 529.000 recounts Receivable 78.000 16.000 Inventory 90.000 33.000 Land 38.000 23.000 33.000 15.000 Investment in Saver Company 151,300 Cost of Goods sold 13,000 110.000 Wage pe 75,000 31,000 Depreciation Expense 29.000 Interest Expense 14.000 16.000 3.000 Other Expert 29.500 25,000 Dividende Declared 58.000 20.000 Armulated Depreciation 149.000 30,000 Accounts Payable 25,000 20.000 Wages Payable 25,000 13.000 Totes Payable 150.000 29.000 Common Stock 200,000 60,000 110,000 40.000 Sales 300.000 229.000 Income from a company 900 31.030,100 $1.030.900 $475.000 5475.000 Required 5 Check my Required: 3. 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 transaction at Book No A Event + Credit int Accounts Common stock Retained coming Income from Saver Company Dividends declared Investment in Saver Company Debit 60,000 40,000 rences 20,000 B 2 Depreciation expense Goodwill impairment loss Income from Saver Company 3 Buildings and equipment Goodwa Accumulated depreciation Investment in Saver Company D 4 Accumulated depreciation Buildings and equipment 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 $ $ 300.000 s (133,000) (71,000) (29,000) (16,000) (29,500) 229,000 (118,000) (31,000) (14.000) (8,000) (25.000) 529.000 (251,000) (102.000) (43,000) 124.000) (54,500) Income Statement Sales Loss: COGS Less: Wage expense Loss Depreciation expense Less Interest expense Loss: Other expenses Less: Impairment loss Income from Saver Co. Net Income Statement of Retained Earnings Beginning balance Not income Loss Dividends declared Ending Balance State $ 21.500$ 33,000 $ 0$ 0 $ 54.500 $ 0 $ 0 $ os 0 $ 0 Y Yahoo Google onacon&external_browser=0&launchUrlhttps%253A%252F%252Fnewconnect.mhedus Mississippi State Facebook Chege Advanced Accoun.. Greeks Auditing Cash C er 4 Seved 5 $ 21.500 5 33.000 $ 05 05 54,500 $ 0$ 05 os 0 $ 0 ces Loss: Impamentos Income from Saver Co Net Income Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance Assets Cash Accounts receivable Inventory Land Buildings & equipment Less: Accumulated depreciation Investment in Saver Co Goodwill Total Assets Liabilities & Stockholders' Equity Accounts payable Wages payable Nos payable Common stock Retained earnings Total Liabilities & Equity $ 0 $ os 0 $ os 0 5 05 0$ 0$ 0 0: 2: : 5 > 2 3 | I 56 5 6 7 8 W E R T Y Y u 0 4 S D F G H J Z Ic cv B N DA Save Exit P4-33 Consolidation Worksheet at End of First Year of Ownership LO 4-5 Check my Price Corporation acquired 100 percent ownership of Saver Company on January , 20x8, for $168,000. At that date, the fair value of Saver's buildings and equipment was $36,000 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, 20XB, that goodwill involved in its acquisition of Saver shares had been impaired and the correct carrying value was $6,500 Trial balance data for Price and Saver on December 31, 20x8, are as follows Rice Corporation Davor Company Item bebit Credit Debt Cash 23.500 529.000 recounts Receivable 78.000 16.000 Inventory 90.000 33.000 Land 38.000 23.000 33.000 15.000 Investment in Saver Company 151,300 Cost of Goods sold 13,000 110.000 Wage pe 75,000 31,000 Depreciation Expense 29.000 Interest Expense 14.000 16.000 3.000 Other Expert 29.500 25,000 Dividende Declared 58.000 20.000 Armulated Depreciation 149.000 30,000 Accounts Payable 25,000 20.000 Wages Payable 25,000 13.000 Totes Payable 150.000 29.000 Common Stock 200,000 60,000 110,000 40.000 Sales 300.000 229.000 Income from a company 900 31.030,100 $1.030.900 $475.000 5475.000 Required 5 Check my Required: 3. 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 transaction at Book No A Event + Credit int Accounts Common stock Retained coming Income from Saver Company Dividends declared Investment in Saver Company Debit 60,000 40,000 rences 20,000 B 2 Depreciation expense Goodwill impairment loss Income from Saver Company 3 Buildings and equipment Goodwa Accumulated depreciation Investment in Saver Company D 4 Accumulated depreciation Buildings and equipment 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 $ $ 300.000 s (133,000) (71,000) (29,000) (16,000) (29,500) 229,000 (118,000) (31,000) (14.000) (8,000) (25.000) 529.000 (251,000) (102.000) (43,000) 124.000) (54,500) Income Statement Sales Loss: COGS Less: Wage expense Loss Depreciation expense Less Interest expense Loss: Other expenses Less: Impairment loss Income from Saver Co. Net Income Statement of Retained Earnings Beginning balance Not income Loss Dividends declared Ending Balance State $ 21.500$ 33,000 $ 0$ 0 $ 54.500 $ 0 $ 0 $ os 0 $ 0 Y Yahoo Google onacon&external_browser=0&launchUrlhttps%253A%252F%252Fnewconnect.mhedus Mississippi State Facebook Chege Advanced Accoun.. Greeks Auditing Cash C er 4 Seved 5 $ 21.500 5 33.000 $ 05 05 54,500 $ 0$ 05 os 0 $ 0 ces Loss: Impamentos Income from Saver Co Net Income Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance Assets Cash Accounts receivable Inventory Land Buildings & equipment Less: Accumulated depreciation Investment in Saver Co Goodwill Total Assets Liabilities & Stockholders' Equity Accounts payable Wages payable Nos payable Common stock Retained earnings Total Liabilities & Equity $ 0 $ os 0 $ os 0 5 05 0$ 0$ 0 0: 2: : 5 > 2 3 | I 56 5 6 7 8 W E R T Y Y u 0 4 S D F G H J Z Ic cv B N DA