Record the basic consolidation entry and the amortized excess value reclassification entry. And also record the excess value (differential) classification entry and the optional accumulated depreciation consolidation entry.Prepare a three-part consolidation worksheet for 20X9. Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $104,500. At that date, the fair value ofSaver's buildings and equipment was $18,000 more than the book value. Accumulated depreciation on this date was $12,000.Buildings and equipment are depreciated on a 5-year basis. Although goodwill is not amortized, Price's management concluded atDecember 31, 20X8, that goodwill involved in its acquisition of Saver shares had been impaired and the correct carrying value was$2,600. No additional impairment occurred in 20X9.Trial balance data for Price and Saver on December 31, 20X9, are as follows:Price CorporationSaver CompanyItemDebitCreditDebitCredit2$$ 41,00054,50087,00099,00065,000CashAccounts Receivable14,00024,00025,000153,000InventoryLandBuildings & EquipmentInvestment in Saver Company357,000119,000136,00031,000Cost of Goods Sold107,000Wage ExpenseDepreciation ExpenseInterest Expense21,0008,00019,00038,00016,00010,0003,00012,00043,400Other ExpensesDividends Declared$ 167,000$ 32,000Accumulated DepreciationAccounts PayableWages PayableNotes PayableCommon Stock13,0006,000100, 40050,00038,000209,00043,00012,000132,000182,000150, 100291,00057,400$1,034,500Retained EarningsSalesIncome from Saver Company$1,034, 500$448,400$448,400 PRICE CORPORATION AND SUBSIDIARYConsolidated Financial Statements WorksheetDecember 31, 20X9Consolidation EntriesPrice Corp.Saver Co.DRCRConsolidatedIncome StatementSalesLess: COGSLess: Wage expenseLess: Depreciation expenseLess: Interest expenseLess: Other expensesIncome from Saver Co.Net Income0 $0 $$0 $Statement of Retained EarningsBeginning balanceNet incomeLess: Dividends declaredEnding Balance$$$2$$AssetsCashAccounts receivableInventoryLandBuildings & equipmentLess: Accumulated depreciationInvestment in Saver Co.GoodwillTotal Assets2$$$0 $0 $Liabilities & Stockholders' EquityAccounts payableWages payableNotes payableCommon stockRetained earningsTotal Liabilities & Equity2$$$$

Journal Entry: Record the daily transactions/ entry in the journal is called journal entry. It is…

Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $104,500. At that date, the fair value of Saver's buildings and equipment was $18,000 more than the book value. Accumulated depreciation on this date was $12,000. Buildings and equipment are depreciated on a 5-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 $2,600. No additional impairment occurred in 20X9. Trial balance data for Price and Saver on December 31, 20X9, are as follows: Saver Company Price Corporation Debit Item Credit Debit Credit $ 41,000 14,000 24,000 25,000 153,000 Cash 54,500 87,000 99,000 65,000 357,000 119,000 Accounts Receivable Inventory Land Buildings & Equipment Investment in Saver Company 107,000 16,000 10,000 3,000 12,000 43,400 Cost of Goods Sold Wage Expense Depreciation Expense Interest Expense Other Expenses 136,000 31,000 21,000 8,000 19,000 Dividends Declared 38,000 $ 167,000 $ 32,000 Accumulated Depreciation Accounts Payable Wages Payable Notes Payable Common Stock 43,000 12,000 132,000 182,000 150,100 291,000 57,400 13,000 6,000 100, 400 50,000 38,000 209,000 Retained Earnings Sales Income from Saver Company $1,034,500 $1,034,500 $448,400 $448,400

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q