Item Cash Pie Corporation acquired 75 percent of Slice Company's ownership on January 1, 20x8, for $96,000. At that date, the fair value of the noncontrolling interest was $32,000. The book value of Slice's net assets at acquisition was $92,000. The book values and fair values of slice's assets and liabilities were equal, except for Slice's buildings and equipment, which were worth $18,400 more than book value. Accumulated depreciation on the buildings and equipment was $24,000 on the acquisition date. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, the management of Pie concluded at December 31, 20x8, that goodwill from its purchase of slice shares had been impaired and the correct carrying amount was $2,600. Goodwill and goodwill impairment were assigned proportionately to the controlling and noncontrolling shareholders. Trial balance data for Pie and Slice on December 31, 20x8, are as follows: Prepare a three-part consolidation worksheet for 20x8. Accounts Receivable Inventory Land Buildings & Equipment Investment in Slice Company Cost of Goods Sold Wage Expense Depreciation Expense Interest Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Wages Payable Notes Payable Common Stock Retained Earnings Sales Income from Slice Company Pie Corporation Debit $ 55,500 88,000 108,000 34,000 358,000 104,070 118,000 39,000 23,000 10,000 11,500 32,000 $ 981,070 Credit $ 129,000 28,000 10,000 227,450 199,000 101,000 267,000 19,620 $ 981,070 Slice Company Debit $ 30,000 21,000 34,000 24,000 166,000 105,000 23,000 8,000 2,000 3,000 15,400 $ 429,400 Credit $ 32,000 9,000 5,000 109,400 54,000 38,000 182,000 $ 429,400
Item Cash Pie Corporation acquired 75 percent of Slice Company's ownership on January 1, 20x8, for $96,000. At that date, the fair value of the noncontrolling interest was $32,000. The book value of Slice's net assets at acquisition was $92,000. The book values and fair values of slice's assets and liabilities were equal, except for Slice's buildings and equipment, which were worth $18,400 more than book value. Accumulated depreciation on the buildings and equipment was $24,000 on the acquisition date. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, the management of Pie concluded at December 31, 20x8, that goodwill from its purchase of slice shares had been impaired and the correct carrying amount was $2,600. Goodwill and goodwill impairment were assigned proportionately to the controlling and noncontrolling shareholders. Trial balance data for Pie and Slice on December 31, 20x8, are as follows: Prepare a three-part consolidation worksheet for 20x8. Accounts Receivable Inventory Land Buildings & Equipment Investment in Slice Company Cost of Goods Sold Wage Expense Depreciation Expense Interest Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Wages Payable Notes Payable Common Stock Retained Earnings Sales Income from Slice Company Pie Corporation Debit $ 55,500 88,000 108,000 34,000 358,000 104,070 118,000 39,000 23,000 10,000 11,500 32,000 $ 981,070 Credit $ 129,000 28,000 10,000 227,450 199,000 101,000 267,000 19,620 $ 981,070 Slice Company Debit $ 30,000 21,000 34,000 24,000 166,000 105,000 23,000 8,000 2,000 3,000 15,400 $ 429,400 Credit $ 32,000 9,000 5,000 109,400 54,000 38,000 182,000 $ 429,400
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 30E
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Transcribed Image Text:Item
Cash
Pie Corporation acquired 75 percent of slice Company's ownership on January 1, 20X8, for $96,000. At that date, the fair value
of the noncontrolling interest was $32,000. The book value of slice's net assets at acquisition was $92,000. The book values and
fair values of Slice's assets and liabilities were equall, except for Slice's buildings and equipment, which were worth $18,400
more than book value. Accumulated depreciation on the buildings and equipment was $24,000 on the acquisition date.
Buildings and equipment are depreciated on a 10-year basis.
Although goodwill is not amortized, the management of Pie concluded at December 31, 20Xx8, that goodwill from its purchase
of Slice shares had been impaired and the correct carrying amount was $2,600. Goodwill and goodwill impairment were
assigned proportionately to the controlling and noncontrolling shareholders.
Trial balance data for Pie and Slice on December 31, 20X8, are as follows:
Prepare a three-part consolidation worksheet for 20XB.
Accounts Receivable
Inventory
Land
Buildings & Equipment
Investment in Slice Company
Cost of Goods Sold
Wage Expense
Depreciation Expense
Interest Expense
Other Expenses
Dividends Declared
Accumulated Depreciation
Accounts Payable
Wages Payable
Notes Payable
Common Stock
Retained Earnings
Sales
Income from Slice Company
Pie Corporation
Debit
$ 55,500
88,000
108,000
34,000
358,000
104,070
118,000
39,000
23,000
10,000
11,500
32,000
$ 981,070
Credit
$ 129,000
28,000
10,000
227,450
199,000
101,000
267,000
19,620
$ 981,070
slice Company
Debit
$ 30,000
21,000
34,000
24,000
166,000
103,000
23,000
8,000
2,000
3,000
15,400
$ 429,400
Credit
$ 32,000
9,000
5,000
109,400
54,000
38,000
182,000
$ 429,400
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