Putt Corporation acquired 80 percent of Slice Company's voting common stock on January 1, 20X4, for $144,000. At that date, the fairvalue of the noncontrolling interest was $36,000. Slice's balance sheet at the date of acquisition contained the following balances:CashAccounts ReceivableLandBuilding and EquipmentLess: Accumulated DepreciationTotal AssetsSLICE COMPANYBalance SheetJanuary 1, 20X4$24,00051,00091,000318,000(94,000)$ 390,000 Total Liabilities and Stockholders' EquityAccounts PayableNotes PayableCommon StockAdditional Paid-in CapitalRetained Earnings$ 31,000222,00092,00067,000(22,000)$ 390,000At 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 businesscombination.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

Consolidation entry is recorded by the holding company to consolidate the accounts of its subsidiary…

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.

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

Section: Chapter Questions

Problem 1Q

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