P4-33 Consolidation Worksheet at End of First Year of Ownership LO 4-5 Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $128,000. At that date, the fair value of Saver's buildings and equipment was $20,000 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 $2,500. Trial balance data for Price and Saver on December 31, 20X8, are as follows: Saver Company Debit Credit $ 21,000 12,000 25,000 15,000 150,000 Item Cash Accounts Receivable Inventory Land Buildings & Equipment 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 Common Stock Retained Earnings Sales Income from Saver Company Price Corporation Debit Credit $ 19,500 70,000 90,000 30,000 350,000 128,500 125,000 42,000 25,000 12,000 13,500 30,000 $145,000 45,000 17,000 150,000 200,000 102,000 260,000 16,500 $935,500 $935,500 110,000 27,000 10,000 4,000 5,000 16,000 $ 40,000 16,000 9,000 50,000 60,000 40,000 180,000 $395,000 $395,000 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.) Answer is not complete. Credit No A Event 1 Accounts Retained earnings Common stock Income from Saver Company Dividends declared Investment in Saver Company Debit 40,000 60,000 24,000 16,000 108,000 B 2 Depreciation expense Goodwill impairment loss Income from Saver Company 2,000 5,500 7,500 3 2,500 2,000 X Goodwill impairment loss Accumulated depreciation Depreciation expense Income from Saver Company 20,000 20,500 Accumulated depreciation Buildings and equipment $ $ 260,000 (125,000) (42,000) (25,000) (12,000) (13,500) 180,000 (110,000) (27,000) (10,000) (4,000) (5,000) 2,000 440,000 (235,000) (69,000) (37,000) (16,000) (18,500) (5,500) 0 59,000 16,500 59,000 5,500 24,000 31,500 7,500 7,500 $ $ 24,000 $ $ $ $ $ $ $ 40,000 31,500 102,000 59,000 (30,000) 131,000 40,000 24,000 (16,000) 48,000 7,500 16,000 23,500 102,000 59,000 (30,000) 131,000 $ $ $ 71,500 $ $ Income Statement Sales Less: COGS Less: Wage expense Less: Depreciation expense Less: Interest expense Less: Other expenses Less: Impairment loss 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 Notes payable Common stock Retained earnings Total Liabilities & Equity $ $ 19,500 70,000 90,000 30,000 350,000 (145,000) 128,500 21,000 12,000 25,000 15,000 150,000 (40,000) 20,000 30,000 30,000 2,000 10,800 X 40,500 82,000 115,000 45,000 490,000 (157,000) 117,700 2,500 735,700 2,500 52,500 $ 543,000 $ 183,000 $ $ 42,800 $ $ 45,000 17,000 150,000 20,000 X 131,000 363,000 16,000 9,000 50,000 60,000 48,000 183,000 61,000 26,000 200,000 20,000 131,000 438,000 60,000 71,500 131,500 23,500 23,500 $ $ $ $ $