b. Prepare all consolidation entries needed to prepare consolidated statements for 20X5. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.a. Prepare all journal entries that Pizza recorded during 20×5 related to its investment in Slice. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction listPizza Corporation acquired 80 percent ownership of Slice Products Company on January 1, 20X1, for $151,000. On that date, the fair value of the noncontrolling interest was $37,750, and Slice reported retained earnings of $46,000 and had $95,000 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, 20X5, are as follows: Item Pizza Corporation Slice Products Company Debit Credit Debit Credit Cash and Receivables $ 86,000 $ 67,000 Inventory 277,000 103,000 Land 86,000 86,000 Buildings and Equipment 517,000 167,000 Investment in Slice Products Company 180,540 Cost of Goods Sold 112,000 46,000 Depreciation Expense 21,000 11,000 Inventory Losses 11,000 5,000 Dividends Declared 37,000 17,200 Accumulated Depreciation $ 193,000 $ 77,000 Accounts Payable 42,000 15,000 Notes Payable 277,160129,200 Common Stock 282,000 95,000 Retained Earnings 296,000 85,000 Sales 210,000 101,000 Income from Slice Products Company 27,380 $1,327,540 $1,327,540 $ 502,200 $ 502,200 Additional Information On the date of combination, the fair value of Slice's depreciable assets was $47,750 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. There was $10,000 of intercorporate receivables and payables at the end of 20X5. Required: Prepare all journal entries that Pizza recorded during 20X5 related to its investment in Slice. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field a. Prepare all journal entries that Pizza recorded during 20x5 related to its investment in Slice. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list a. Prepare all journal entries that Pizza recorded during 20X5 related to its investment in Slice. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction st View journal entry worksheet No Event General Journal 1 Investment in Slice Products Company Income from Sice Products Company B 2 Cash с 3 Investment in Slice Products Company Income from Slice Products Company Investment in Slice Products Company Debit Credil 151,000 151,000
b. Prepare all consolidation entries needed to prepare consolidated statements for 20X5. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.a. Prepare all journal entries that Pizza recorded during 20×5 related to its investment in Slice. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction listPizza Corporation acquired 80 percent ownership of Slice Products Company on January 1, 20X1, for $151,000. On that date, the fair value of the noncontrolling interest was $37,750, and Slice reported retained earnings of $46,000 and had $95,000 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, 20X5, are as follows: Item Pizza Corporation Slice Products Company Debit Credit Debit Credit Cash and Receivables $ 86,000 $ 67,000 Inventory 277,000 103,000 Land 86,000 86,000 Buildings and Equipment 517,000 167,000 Investment in Slice Products Company 180,540 Cost of Goods Sold 112,000 46,000 Depreciation Expense 21,000 11,000 Inventory Losses 11,000 5,000 Dividends Declared 37,000 17,200 Accumulated Depreciation $ 193,000 $ 77,000 Accounts Payable 42,000 15,000 Notes Payable 277,160129,200 Common Stock 282,000 95,000 Retained Earnings 296,000 85,000 Sales 210,000 101,000 Income from Slice Products Company 27,380 $1,327,540 $1,327,540 $ 502,200 $ 502,200 Additional Information On the date of combination, the fair value of Slice's depreciable assets was $47,750 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. There was $10,000 of intercorporate receivables and payables at the end of 20X5. Required: Prepare all journal entries that Pizza recorded during 20X5 related to its investment in Slice. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field a. Prepare all journal entries that Pizza recorded during 20x5 related to its investment in Slice. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list a. Prepare all journal entries that Pizza recorded during 20X5 related to its investment in Slice. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction st View journal entry worksheet No Event General Journal 1 Investment in Slice Products Company Income from Sice Products Company B 2 Cash с 3 Investment in Slice Products Company Income from Slice Products Company Investment in Slice Products Company Debit Credil 151,000 151,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:b. Prepare all consolidation entries needed to prepare consolidated statements
for 20X5. Note: If no entry is required for a transaction/event, select "No journal entry
required" in the first account field.a. Prepare all journal entries that Pizza recorded
during 20×5 related to its investment in Slice. Note: If no entry is required for a
transaction/event, select "No journal entry required" in the first account field. View
transaction listPizza Corporation acquired 80 percent ownership of Slice Products Company
on January 1, 20X1, for $151,000. On that date, the fair value of the noncontrolling interest
was $37,750, and Slice reported retained earnings of $46,000 and had $95,000 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, 20X5, are as follows: Item
Pizza Corporation Slice Products Company Debit Credit Debit Credit Cash and Receivables
$ 86,000 $ 67,000 Inventory 277,000 103,000 Land 86,000 86,000 Buildings and
Equipment 517,000 167,000 Investment in Slice Products Company 180,540 Cost of Goods
Sold 112,000 46,000 Depreciation Expense 21,000 11,000 Inventory
Losses 11,000 5,000 Dividends Declared 37,000 17,200 Accumulated Depreciation
$193,000 $ 77,000 Accounts Payable 42,000 15,000 Notes Payable 277,160129,200 Common
Stock 282,000 95,000 Retained Earnings 296,000 85,000 Sales 210,000 101,000 Income from
Slice Products Company 27,380 $1,327,540 $1,327,540 $ 502,200 $ 502,200 Additional
Information On the date of combination, the fair value of Slice's depreciable assets was
$47,750 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. There was $10,000 of intercorporate receivables
and payables at the end of 20X5. Required: Prepare all joumal entries that Pizza recorded
during 20X5 related to its investment in Slice. Note: If no entry is required for a
transaction/event, select "No journal entry required" in the first account field a. Prepare all
journal entries that Pizza recorded during 20x5 related to its investment in Slice. Note: If no
entry is required for a transaction/event, select "No journal entry required" in the first account
field. View transaction list
a. Prepare all journal entries that Pizza recorded during 20X5 related to its investment in Slice.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
View transaction fist View journal entry worksheet
No
A
Event
General Journal
Investment in Slice Products Company
Income from Sice Products Company
B
2
с
3
Cash
Investment in Slice Products Company
Income from Stice Products Company
Investment in Slice Products Company
Debit
Credi
151.000
151,000
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