Pizza Corporation acquired 80 percent ownership of Slice Products Company on January 1, 20X1, for $148,000. On that date, the fair value of the noncontrolling interest was $37,000, and Slice reported retained earnings of $45,000 and had $93,000 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: Pizza Corporation Slice Products Company Item Debit Credit Debit Credit Cash & Receivables $ 86,000 $ 80,000 Inventory 270,000 94,000 Land 83,000 83,000 Buildings & Equipment 501,000 154,000 Investment in Slice Products Company 176,400 Cost of Goods Sold 115,000 45,000 Depreciation Expense 25,000 15,000 Inventory Losses 15,000 6,000 Dividends Declared 45,000 14,000 Accumulated Depreciation $ 193,000 $ 105,000 Accounts Payable 50,000 10,000 Notes Payable 270,160 99,000 Common Stock 282,000 93,000 Retained Earnings 296,000 83,000 Sales 201,000 101,000 Income from Slice Products Company 24,240 $ 1,316,400 $ 1,316,400 $ 491,000 $ 491,000 Additional Information On the date of combination, the fair value of Slice's depreciable assets was $47,000 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 $13,000 of intercorporate receivables and payables at the end of 20X5. c. Prepare a three-part worksheet as of December 31, 20X5. (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 enter this amount in the credit column of the worksheet.) Need help with the incorrect answers attached.

Pizza Corporation acquired 80 percent ownership of Slice Products Company on January 1, 20X1, for $148,000. On that date, the fair value of the noncontrolling interest was $37,000, and Slice reported retained earnings of $45,000 and had $93,000 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: Pizza Corporation Slice Products Company Item Debit Credit Debit Credit Cash & Receivables $ 86,000 $ 80,000 Inventory 270,000 94,000 Land 83,000 83,000 Buildings & Equipment 501,000 154,000 Investment in Slice Products Company 176,400 Cost of Goods Sold 115,000 45,000 Depreciation Expense 25,000 15,000 Inventory Losses 15,000 6,000 Dividends Declared 45,000 14,000 Accumulated Depreciation $ 193,000 $ 105,000 Accounts Payable 50,000 10,000 Notes Payable 270,160 99,000 Common Stock 282,000 93,000 Retained Earnings 296,000 83,000 Sales 201,000 101,000 Income from Slice Products Company 24,240 $ 1,316,400 $ 1,316,400 $ 491,000 $ 491,000 Additional Information On the date of combination, the fair value of Slice's depreciable assets was $47,000 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 $13,000 of intercorporate receivables and payables at the end of 20X5. c. Prepare a three-part worksheet as of December 31, 20X5. (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 enter this amount in the credit column of the worksheet.) Need help with the incorrect answers attached.

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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Question

	Pizza Corporation		Slice Products Company
Item	Debit		Credit		Debit	Credit
Cash & Receivables	$	86,000				$	80,000
Inventory		270,000					94,000
Land		83,000					83,000
Buildings & Equipment		501,000					154,000
Investment in Slice Products Company		176,400
Cost of Goods Sold		115,000					45,000
Depreciation Expense		25,000					15,000
Inventory Losses		15,000					6,000
Dividends Declared		45,000					14,000
Accumulated Depreciation				$	193,000			$	105,000
Accounts Payable					50,000				10,000
Notes Payable					270,160				99,000
Common Stock					282,000				93,000
Retained Earnings					296,000				83,000
Sales					201,000				101,000
Income from Slice Products Company					24,240
	$	1,316,400		$	1,316,400	$	491,000	$	491,000

Additional Information

On the date of combination, the fair value of Slice's depreciable assets was $47,000 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 $13,000 of intercorporate receivables and payables at the end of 20X5.

c. Prepare a three-part worksheet as of December 31, 20X5. (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 enter this amount in the credit column of the worksheet.)

Need help with the incorrect answers attached.

Cash and receivables
2$
86,000 O $
80,000 O
13,000
153,000
Inventory
270,000 O
94,000 O
364,000
Land
83,000
83,000
166,000
154,000 O
Buildings and equipment
Less: Accumulated depreciation
501,000 O
47,000 O
702,000
(193,000)
(105,000)
23,500 O
(321,500)
Investment in Slice Products Company
176,400 O
18,800 X
157,600
Total Assets
2$
923,400
2$
306,000
47,000
$
55,300
$
1,221,100
Accounts payable
$
50,000
$
10,000
2$
13,000 O
2$
47,000
Notes payable
270,160 O
99,000 O
369,160
Common stock
282,000
93,000 O
93,000
282,000
Retained earnings
321,240
104,000
122,700
18,700
321,240
NCI in NA of Slice Products Company
4,700 X
4,700
Total Liabilities and Equity
923,400
306,000
228,700
23,400
1,024,100

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