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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 $3,400. 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 $ 52,500 80,000 100,000 40,000 368,000 98,625 123,000 40,000 24,000 11,000 12,500 34,000 Slice Company Credit Credit Item Cash Accounts Receivable Debit $ 29,000 20,000 33,000 23,000 162,000 Inventory Land Buildings & Equipment Investment in Slice Company Cost of Goods Sold 108,000 24,000 10,000 4,000 5,000 18,000 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 Slice Company $137,000 30,000 10,000 224,500 199,000 101,000 269,000 13,125 $ 40,000 9,000 5,000 102,000 66,000 29,000 185,000 $983,625 $983,625 $436,000 $436, 000

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 $3,400. 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 $ 52,500 80,000 100,000 40,000 368,000 98,625 123,000 40,000 24,000 11,000 12,500 34,000 Slice Company Credit Credit Item Cash Accounts Receivable Debit $ 29,000 20,000 33,000 23,000 162,000 Inventory Land Buildings & Equipment Investment in Slice Company Cost of Goods Sold 108,000 24,000 10,000 4,000 5,000 18,000 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 Slice Company $137,000 30,000 10,000 224,500 199,000 101,000 269,000 13,125 $ 40,000 9,000 5,000 102,000 66,000 29,000 185,000 $983,625 $983,625 $436,000 $436, 000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Consolidation Worksheet Entries A. B D > Record the basic consolidation entry. Note: Enter debits before credits. Entry Accounts Debit Credit Record entry Clear entry view consolidation entries Consolidation Worksheet Entries < A B D > Record the amortized excess value reclassification entry. Note: Enter debits before credits. Entry Accounts Debit Credit Record entry Clear entry view consolidation entries Consolidation Worksheet Entries A в D > Record the excess value (differential) reclassification entry. Note: Enter debits before credits. Entry Accounts Debit Credit 3 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries А в с > Record the optional accumulated depreciation consolidation entry. Note: Enter debits before credits. Entry Accounts Debit Credit Record entry Clear entry view consolidation entries
Transcribed Image Text:Consolidation Worksheet Entries A. B D > Record the basic consolidation entry. Note: Enter debits before credits. Entry Accounts Debit Credit Record entry Clear entry view consolidation entries Consolidation Worksheet Entries < A B D > Record the amortized excess value reclassification entry. Note: Enter debits before credits. Entry Accounts Debit Credit Record entry Clear entry view consolidation entries Consolidation Worksheet Entries A в D > Record the excess value (differential) reclassification entry. Note: Enter debits before credits. Entry Accounts Debit Credit 3 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries А в с > Record the optional accumulated depreciation consolidation entry. Note: Enter debits before credits. Entry Accounts Debit Credit Record entry Clear entry view consolidation entries
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 $3,400. 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 $ 52,500 80,000 100,000 Slice Company Debit $ 29,000 20,000 33,000 23,000 162,000 Credit Credit Item Cash Accounts Receivable Inventory Land Buildings & Equipment Investment in Slice Company Cost of Goods Sold Wage Expense Depreciation Expense Interest Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Wages Payable Notes Payable 40,000 368,000 98,625 123,000 40,000 24,000 11,000 12,500 34,000 108,000 24,000 10,000 4,000 5,000 18,000 $137,000 30,000 10,000 224,500 199,000 101,000 269,000 13,125 $983,625 $ 40,000 9,000 5,000 102,000 66,000 29,000 185,000 Common Stock Retained Earnings Sales Income from Slice Company $983,625 $436,000 $436,000
Transcribed Image Text: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 $3,400. 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 $ 52,500 80,000 100,000 Slice Company Debit $ 29,000 20,000 33,000 23,000 162,000 Credit Credit Item Cash Accounts Receivable Inventory Land Buildings & Equipment Investment in Slice Company Cost of Goods Sold Wage Expense Depreciation Expense Interest Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Wages Payable Notes Payable 40,000 368,000 98,625 123,000 40,000 24,000 11,000 12,500 34,000 108,000 24,000 10,000 4,000 5,000 18,000 $137,000 30,000 10,000 224,500 199,000 101,000 269,000 13,125 $983,625 $ 40,000 9,000 5,000 102,000 66,000 29,000 185,000 Common Stock Retained Earnings Sales Income from Slice Company $983,625 $436,000 $436,000
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