Saved Help Save & Exit Subr Check my work Pie Corporation acquired 75 percent of Slice Company's ownership on January 1, 20X8, for $99,000. At that date, the fair value of the noncontrolling interest was $33,000. The book value of Slice's net assets at acquisition was $95,000. The book values and fair values of Slice's assets and liabilities were equal, except for Slice's buildings and equipment, which were worth $19,000 more than book value. Accumulated depreciation on the buildings and equipment was $30,000 on the acquisition date. Buildings and equipment are depreciated on a 10-year basis Although goodwill is not amortized, the management of Pie concluded at December 31, 20X8, that goodwill from its purchase of Slice shares had been impaired and the correct carrying amount was $2,800. Goodwill and goodwill impairment were assigned proportionately to the controlling and noncontrolling shareholders. Trial balance data for Pie and Slice on December 31, 20X8, are as follows: Trial balance data for Pie and Slice on December 31, 20X8, are as follows: Pie Corporation slice Company Item Debit Credit Debit Credit Cash $ 28,000 19,000 $ 53,500 Accounts Receivable 80,000 Inventory 100,000 32,000 Land 39,000 355,000 95,775 122,000 40,000 21,000 8,000 9,500 22,000 155,000 Buildings & Equipment Investment in Slice Company Cost of Goods Sold 107,000 24,000 10,000 4,000 5,000 17,200 Wage Expense Depreciation Expense Interest Expense Other Expenses Dividends Declared 33,000 Accumulated Depreciation Accounts Payable Wages Payable Notes Payable $141,000 33,000 S 40,000 7,000 8,000 196,100 199,000 101,000 269,000 9,675 3,000 98,200 54,000 41,000 180,000 Common Stock Retained Earnings Sales Income from Slice Company $956, 775 $956,775 $423,200 $423,200 Check my v Required: a. Record all consolidation 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 Import a new list ces Record the basic consolidation entry. Record the amortized excess value reclassification entry. B Record the excess value (differential) reclassification C entry D Record the optional accumulated depreciation consolidation entry. Credit 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.) PIE CORPORATION AND SUBSIDIARY ok Worksheet for Consolidated Financial Statements December 31, 20X8 nt Consolidation Entries ences Pie Corp. Slice Co. DR CR Consolidated Income Statement Sales Less: COGS Less: Wage expense Less: Depreciation expense Less. Interest expense Less: Other expenses Less: Impairment loss Income from Slice Company 0 0 S Consolidated net income NCI in net income S 0 1 Check my work NCI in net income Controlling Interest in Net Income S C 0 Statement of Retained Eanings Beginning balance 10 Net income points Less: Dividends declared Ending Balance S eBook Balance Sheet Prict |Cash References Accounts receivable Inventory Land Buildings and equipment Less Accumulated depreciation Investment in Sice Company Coodwil ol s Total Assets Accounts payoble Wagas payabie Notes payable Common stock 1 Common stock Retained earnings NCI in NA of Slice Company Total Liabilities and Equity 0 S 0 o s 0 Pie Corporation acquired 75 percent of Slice Company's ownership on January 1, 20X8, for $99,000. At that date, the fair value of the noncontrolling interest was $33,000. The book value of Slice's net assets at acquisition was $95,000. The book values and fair values of Slice's assets and liabilities were equal, except for Slice's buildings and equipment, which were worth $19,000 more than book value. Accumulated depreciation on the buildings and equipment was $30,000 on the acquisition date. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, the management of Pie concluded at December 31, 20X8, that goodwill from its purchase of Slice shares had been impaired and the correct carrying amount was $2,800. Goodwill and goodwill impairment were assigned proportionately to the controlling and noncontrolling shareholders. Trial balance data for Pie and Slice on December 31, 20X8, are as follows: Pie Corporation Debit $ 53,500 80,000 100,000 39,000 355,000 95,775 122,000 Slice Company Item Cash Accounts Receivable Inventory Land Credit Debit Credit $ 28,000 19,000 32,000 22,000 155,000 Buildings & Equipment Investment in Slice Company Cost of Goods Sold 107,000 24,000 10,000 4,000 5,000 17,200 Wage Expense Depreciation Expense Interest Expense 40,000 21,000 8,000 Other Expenses Dividends Declared 9,500 33,000 Accumulated Depreciation Accounts Payable Wages Payable Notes Payable $141,000 33,000 8,000 196,100 $ 40,000 7,000 3,000 98,200 54,000 41,000 180,000 Common Stock Retained Earnings 199,000 101,000 269,000 9,675 Sales Income from Slice Company $956,775 $956,775 $423,200 $423,200 Required: a. Record all consolidation 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 Import a new list Record the basic consolidation entry. A Record the amortized excess value reclassification entry. B Record the excess value (differential) reclassification C entry. Record the optional accumulated depreciation D consolidation entry. Credit 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.) Check 10 boints CR Income Statement Consolldated Skipped Sales Less: COGS eBook Less: Wage expense Less: Depreciation expense Print Less: Interest expense eferences Less: Other expenses Less: Impairment loss Income from Slice Company Consolidated net income 0 $ 0 $ NCI in net income Controlling Interest in Net Income $ S 0 $ 0 Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Check m Net income Less: Dividends declared Ending Balance 0$ Balance Sheet Cash Accounts receivable Inventory Land Buildings and equipment Less: Accumulated depreciation Investment in Slice Company Goodwill Total Assets $ 0 $ 0 Accounts payable Wages payable Notes payable Common stock Retained earnings NCI in NA of Slice Company 0S Total Liabilities and Equity 0 $ 0