Putt Corporation acquired 80 percent of Slice Company's voting common stock on January 1, 20X4, for $138,000. At that date, the fair value of the noncontrolling interest was $34,500. 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 $ 20,000 35,000 90,000 300,000 (85,000) $360,000 Accounts Payable Notes Payable Common Stock Additional Paid-in Capital Retained Earnings Total Liabilities and Stockholders' Equity $ 35,000 180,000 100,000 75,000 (30,000) $360,000 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 $138,000. At that date, the fair value of the noncontrolling interest was $34,500. 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 $ 20,000 35,000 90,000 300,000 (85,000) $360,000 Accounts Payable Notes Payable Common Stock Additional Paid-in Capital Retained Earnings Total Liabilities and Stockholders' Equity $ 35,000 180,000 100,000 75,000 (30,000) $360,000 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Putt Corporation acquired 80 percent of Slice Company's voting common stock on January 1, 20X4, for $138,000. At that date, the fair
value of the noncontrolling interest was $34,500. 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
$ 20,000
35,000
90,000
300,000
(85,000)
$360,000
Accounts Payable
Notes Payable
Common Stock
Additional Paid-in Capital
Retained Earnings
Total Liabilities and Stockholders' Equity
$ 35,000
180,000
100,000
75,000
(30,000)
$360,000
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F506c3f2a-e371-4ce1-aa8d-cf5301d8204a%2Fcab9a964-ff78-4720-98f6-05a5e5a4ec24%2F4tvtb3q_processed.png&w=3840&q=75)
Transcribed Image Text:Putt Corporation acquired 80 percent of Slice Company's voting common stock on January 1, 20X4, for $138,000. At that date, the fair
value of the noncontrolling interest was $34,500. 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
$ 20,000
35,000
90,000
300,000
(85,000)
$360,000
Accounts Payable
Notes Payable
Common Stock
Additional Paid-in Capital
Retained Earnings
Total Liabilities and Stockholders' Equity
$ 35,000
180,000
100,000
75,000
(30,000)
$360,000
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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