The correct is in green, and the red is incorrect. Please show and explain how to solve! Thanks
Exercise 5-11 On January 1, 2013, Piper Company acquired an 80% interest in Sand Company for $2,204,200. At that time the common stock and retained earnings of Sand Company were $1,781,900 and $712,300, respectively. Differences between the fair value and the book value of the identifiable assets of Sand Company were as follows: Fair Value in Excess of Book Value Inventory Equipment (net) $45,200 48,600 The book values of all other assets and liabilities of Sand Company were equal to their fair values on January 1, 2013. The equipment had a remaining useful life of eight years. Inventory is accounted for on a FIFO basis. Sand Company's reported net income and declared dividends for 2013 through 2015 are shown here: Net Income Dividends 2013 $103,800 20,200 2014 $156,400 30,600 2015 $76,400 15,700 Prepare the eliminating/adjusting entries needed on the consolidated worksheet for the years ended 2013, 2014, and 2015. Your answer is partially correct. Try again. Assume the use of the cost method. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts, Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 2013 Dividend Income T 16,160 Dividends Declared - Parent Company 16,160 (To eliminate intercompany dividends) Common Stock 1,781,900 Retained Earnings 712,300 Difference between Implied and Book Value 261,050 Investment in Subsidiary 2,204,200 Noncontrolling Interest 551,050 (To eliminate the investment account) Depreciation Expense 6,075 (10 mide ule vesilen olluun) Depreciation Expense 6,075 Cost of Goods Sold 45,200 Equipment 42,57 Goodwill Difference between Implied and Book Value T 261,050 (To allocate and depreciate the difference between implied and book value) 2014 Investment in Subsidiary 66,880 66,880 Retained Earnings (To establish reciprocity/convert to equity method as of 1/1/2011) Investment in Subsidiary | Dividends Declared - Subsidiary Company (To eliminate intercompany dividends) Common Stock 1,781,900 Retained Earnings 921,700 66,880 | Retained Earnings (To establish reciprocity/convert to equity method as of 1/1/2011) Investment in Subsidiary 24,480 24,480 L 24,480 | Dividends Declared - Subsidiary Company (To eliminate intercompany dividends) Common Stock 781,900 Retained Earnings 921,700 Difference between Implied and Book Value 261.050 Investment in Subsidiary 2,371,720 Noncontrolling Interest 592,930 (To eliminate investment account and create noncontrolling interest account) Depreciation Expense Cost of Goods Sold 45,200 TEquipment 36,450 Equipment 36,450]T. Goodwill 167,250|| Difference between Implied and Book Value 203,980 Noncontrolling Interest 50,995 (To allocate and depreciate the difference between implied and book value) 2015 Investment in Subsidiary Retained Earnings 100,640) (To establish reciprocity/convert to equity method as of 1/1/2012) Investment in Subsidiary G 12,5601 12,560 Dividends Declared - Subsidiary Company (To eliminate intercompany dividends) Common Stock ,900 TRetained Earnings 982,400) Difference between Implied and Book Value 261,050 Investment in Subsidiary 2,420,280 | Noncontrolling Interest 605,070 (To eliminate investment account and create noncontrolling interest account) Depreciation Expense 6,075 HII HRHUND Cost of Goods Sold 45,200 Equipment 30. Goodwill 107,250 167, Investment in Subsidiary 199,120 Noncontrolling Interest 49,780 (To allocate and depreciate the difference between implied and book value) Exercise 5-11 On January 1, 2013, Piper Company acquired an 80% interest in Sand Company for $2,204,200. At that time the common stock and retained earnings of Sand Company were $1,781,900 and $712,300, respectively. Differences between the fair value and the book value of the identifiable assets of Sand Company were as follows: Fair Value in Excess of Book Value Inventory Equipment (net) $45,200 48,600 The book values of all other assets and liabilities of Sand Company were equal to their fair values on January 1, 2013. The equipment had a remaining useful life of eight years. Inventory is accounted for on a FIFO basis. Sand Company's reported net income and declared dividends for 2013 through 2015 are shown here: Net Income Dividends 2013 $103,800 20,200 2014 $156,400 30,600 2015 $76,400 15,700 Prepare the eliminating/adjusting entries needed on the consolidated worksheet for the years ended 2013, 2014, and 2015. Your answer is partially correct. Try again. Assume the use of the cost method. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts, Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 2013 Dividend Income T 16,160 Dividends Declared - Parent Company 16,160 (To eliminate intercompany dividends) Common Stock 1,781,900 Retained Earnings 712,300 Difference between Implied and Book Value 261,050 Investment in Subsidiary 2,204,200 Noncontrolling Interest 551,050 (To eliminate the investment account) Depreciation Expense 6,075 (10 mide ule vesilen olluun) Depreciation Expense 6,075 Cost of Goods Sold 45,200 Equipment 42,57 Goodwill Difference between Implied and Book Value T 261,050 (To allocate and depreciate the difference between implied and book value) 2014 Investment in Subsidiary 66,880 66,880 Retained Earnings (To establish reciprocity/convert to equity method as of 1/1/2011) Investment in Subsidiary | Dividends Declared - Subsidiary Company (To eliminate intercompany dividends) Common Stock 1,781,900 Retained Earnings 921,700 66,880 | Retained Earnings (To establish reciprocity/convert to equity method as of 1/1/2011) Investment in Subsidiary 24,480 24,480 L 24,480 | Dividends Declared - Subsidiary Company (To eliminate intercompany dividends) Common Stock 781,900 Retained Earnings 921,700 Difference between Implied and Book Value 261.050 Investment in Subsidiary 2,371,720 Noncontrolling Interest 592,930 (To eliminate investment account and create noncontrolling interest account) Depreciation Expense Cost of Goods Sold 45,200 TEquipment 36,450 Equipment 36,450]T. Goodwill 167,250|| Difference between Implied and Book Value 203,980 Noncontrolling Interest 50,995 (To allocate and depreciate the difference between implied and book value) 2015 Investment in Subsidiary Retained Earnings 100,640) (To establish reciprocity/convert to equity method as of 1/1/2012) Investment in Subsidiary G 12,5601 12,560 Dividends Declared - Subsidiary Company (To eliminate intercompany dividends) Common Stock ,900 TRetained Earnings 982,400) Difference between Implied and Book Value 261,050 Investment in Subsidiary 2,420,280 | Noncontrolling Interest 605,070 (To eliminate investment account and create noncontrolling interest account) Depreciation Expense 6,075 HII HRHUND Cost of Goods Sold 45,200 Equipment 30. Goodwill 107,250 167, Investment in Subsidiary 199,120 Noncontrolling Interest 49,780 (To allocate and depreciate the difference between implied and book value)
