Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Show ALL WORK for a thumbs up please P5-39 Comprehensive Problem: Majority-Owned Subsidiary LO 5-2 Pizza Corporation acquired 80 percent ownership of Slice Products Company
Show ALL WORK for a thumbs up please
P5-39 Comprehensive Problem: Majority-Owned Subsidiary LO 5-2 Pizza Corporation acquired 80 percent ownership of Slice Products Company on January 1,201, for $145,000. On that date, the fair value of the noncontrolling interest was $36,250, and Slice reported retained earnings of $41,000 and had $94,000 of common stock outstanding. Pizza has used the equity method in accounting for its investment in Slice. Trial balance data for the two companies on December 31,205, are as follows: Additional Information 1. On the date of combination, the fair value of Slice's depreciable assets was $46,250 more than book value. The accumulated depreciation on these assets was $10,000 on the acquisition date. The differential assigned to depreciable assets should be written off over the following 10 -year period. 2. There was $12,000 of intercorporate receivables and payables at the end of 205. Required: a. Prepare all journal entries that Pizza recorded during 205 related to its investment in Slice. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Required: a. Prepare all journal entries that Pizza recorded during 205 related to its investment in Slice. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record Pizza Corporation's 80% share of Slice Products Company's 205 income. Note: Enter debits before credits. D. Prepare all consolidation entries needed to prepare consolidated statements for 205. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Consolidation Worksheet Entries Note: Enter debits before credits. c. Prepare a three-part worksheet as of December 31,205. (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 erStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started