Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $120,600. At that date, the fair value of Saver's buildings and equipment was $19,000 more than the book value. Accumulated depreciation on this date was $17,000. Buildings and equipment are depreciated on a 10-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 $2,000. No additional impairment occurred in 20X9. Trial balance data for Price and Saver on December 31, 20X9, are as follows: Price Corporation Saver Company Item Debit Credit Debit Credit Cash $ 53,500 $ 36,000 Accounts Receivable 88,000 15,000 Inventory 100,000 25,000 Land 58,000 26,000 Buildings & Equipment 364,000 152,000 Investment in Saver Company 135,100 Cost of Goods Sold 142,000 105,000 Wage Expense 35,000 20,000 Depreciation Expense 25,000 9,000 Interest Expense 12,000 2,000 Other Expenses 23,000 16,000 Dividends Declared 33,000 34,100 Accumulated Depreciation $ 160,000 $ 35,000 Accounts Payable 33,000 9,000 Wages Payable 8,000 5,000 Notes Payable 149,000 87,100 Common Stock 184,000 57,000 Retained Earnings 194,500 45,000 Sales 292,000 202,000 Income from Saver Company 48,100 $ 1,068,600 $ 1,068,600 $ 440,100 $ 440,100 Required: a. Prepare all consolidating entries needed to prepare a three-part consolidation worksheet as of December 31, 20X9. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $120,600. At that date, the fair value of Saver's buildings and equipment was $19,000 more than the book value.
Price Corporation | Saver Company | ||||||||||||||
Item | Debit | Credit | Debit | Credit | |||||||||||
Cash | $ | 53,500 | $ | 36,000 | |||||||||||
88,000 | 15,000 | ||||||||||||||
Inventory | 100,000 | 25,000 | |||||||||||||
Land | 58,000 | 26,000 | |||||||||||||
Buildings & Equipment | 364,000 | 152,000 | |||||||||||||
Investment in Saver Company | 135,100 | ||||||||||||||
Cost of Goods Sold | 142,000 | 105,000 | |||||||||||||
Wage Expense | 35,000 | 20,000 | |||||||||||||
Depreciation Expense | 25,000 | 9,000 | |||||||||||||
Interest Expense | 12,000 | 2,000 | |||||||||||||
Other Expenses | 23,000 | 16,000 | |||||||||||||
Dividends Declared | 33,000 | 34,100 | |||||||||||||
Accumulated Depreciation | $ | 160,000 | $ | 35,000 | |||||||||||
Accounts Payable | 33,000 | 9,000 | |||||||||||||
Wages Payable | 8,000 | 5,000 | |||||||||||||
Notes Payable | 149,000 | 87,100 | |||||||||||||
Common Stock | 184,000 | 57,000 | |||||||||||||
194,500 | 45,000 | ||||||||||||||
Sales | 292,000 | 202,000 | |||||||||||||
Income from Saver Company | 48,100 | ||||||||||||||
$ | 1,068,600 | $ | 1,068,600 | $ | 440,100 | $ | 440,100 | ||||||||
Required:
a. Prepare all consolidating entries needed to prepare a three-part consolidation worksheet as of December 31, 20X9. (If no entry is required for a transaction/event, select "No
b. Prepare a three-part consolidation worksheet for 20X9. (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
c-1. Prepare a consolidated
c-2. Prepare a consolidated income statement for 20X9.
c-3. Prepare a retained earnings statement for 20X9.
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