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. Please help me with below: Record the amortization of the excess acquisition price. Event General Journal Debit Credit 3 Income from Slice Products Company Investment in Slice Products Company
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. Please help me with below: Record the amortization of the excess acquisition price. Event General Journal Debit Credit 3 Income from Slice Products Company Investment in Slice Products Company
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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
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 | ||||||||||
$ | 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.
Please help me with below:
- Record the amortization of the excess acquisition price.
|
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education