Putt Corporation acquired 80 percent of Slice Company's voting common stock on January 1, 20X4, for $144,000. At that date, the fair value of the noncontrolling interest was $36,000. Slice's balance sheet at the date of acquisition contained the following balances: Cash Accounts Receivable Land Building and Equipment Less: Accumulated Depreciation Total Assets SLICE COMPANY Balance Sheet January 1, 20X4 $ 24,000 Accounts Payable Notes Payable 51,000 91,000 Common Stock 318,000 (94,000) $ 390,000 Additional Paid-in Capital Retained Earnings Total Liabilities and Stockholders' Equity $ 31,000 222,000 92,000 67,000 (22,000) $ 390,000 At the date of acquisition, the reported book values of Slice's assets and liabilities approximated fair value. Required: Prepare the consolidation entry or entries needed to prepare a consolidated balance sheet immediately following the business combination. Note: 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
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Putt Corporation acquired 80 percent of Slice Company's voting common stock on January 1, 20X4, for $144,000. At that date, the fair
value of the noncontrolling interest was $36,000. Slice's balance sheet at the date of acquisition contained the following balances:
Cash
Accounts Receivable
Land
Building and Equipment
Less: Accumulated Depreciation
Total Assets
SLICE COMPANY
Balance Sheet
January 1, 20X4
$24,000
51,000
91,000
318,000
(94,000)
$ 390,000 Total Liabilities and Stockholders' Equity
Accounts Payable
Notes Payable
Common Stock
Additional Paid-in Capital
Retained Earnings
$ 31,000
222,000
92,000
67,000
(22,000)
$ 390,000
At the date of acquisition, the reported book values of Slice's assets and liabilities approximated fair value.
Required:
Prepare the consolidation entry or entries needed to prepare a consolidated balance sheet immediately following the business
combination.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Transcribed Image Text:Putt Corporation acquired 80 percent of Slice Company's voting common stock on January 1, 20X4, for $144,000. At that date, the fair value of the noncontrolling interest was $36,000. Slice's balance sheet at the date of acquisition contained the following balances: Cash Accounts Receivable Land Building and Equipment Less: Accumulated Depreciation Total Assets SLICE COMPANY Balance Sheet January 1, 20X4 $24,000 51,000 91,000 318,000 (94,000) $ 390,000 Total Liabilities and Stockholders' Equity Accounts Payable Notes Payable Common Stock Additional Paid-in Capital Retained Earnings $ 31,000 222,000 92,000 67,000 (22,000) $ 390,000 At the date of acquisition, the reported book values of Slice's assets and liabilities approximated fair value. Required: Prepare the consolidation entry or entries needed to prepare a consolidated balance sheet immediately following the business combination. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
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