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.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

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.)
 

 


 
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 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.)
 

 


 
c-1. Prepare a consolidated balance sheet for 20X9. (Amounts to be deducted should be indicated with a minus sign.)
 

 


 
c-2. Prepare a consolidated income statement for 20X9.
 

 


 
c-3. Prepare a retained earnings statement for 20X9.
 

 

 

Expert Solution
Step 1

Since you have posted multiple questions, we are solving the 1st question for you. If you want any specific question to be solved then please specify the question number or post only that question.

trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 3 images

Blurred answer
Knowledge Booster
Accounting for Intangible assets
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.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education