Pie Corporation acquired 75 percent of Slice Company's ownership on January 1, 20X8, for $99,000. At that date, the fair value of the noncontrolling interest was $33,000. The book value of Slice's net assets at acquisition was $95,000. The book values and fair values of Slice's assets and liabilities were equal, except for Slice's buildings and equipment, which were worth $19,000 more than book value. Accumulated depreciation on the buildings and equipment was $30,000 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 $3,400. 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: Pie Corporation Debit $ 52,500 80,000 100,000 40,000 368,000 98,625 123,000 40,000 24,000 11,000 12,500 34,000 Slice Company Credit Credit Item Cash Accounts Receivable Debit $ 29,000 20,000 33,000 23,000 162,000 Inventory Land Buildings & Equipment Investment in Slice Company Cost of Goods Sold 108,000 24,000 10,000 4,000 5,000 18,000 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 $137,000 30,000 10,000 224,500 199,000 101,000 269,000 13,125 $ 40,000 9,000 5,000 102,000 66,000 29,000 185,000 $983,625 $983,625 $436,000 $436, 000
Pie Corporation acquired 75 percent of Slice Company's ownership on January 1, 20X8, for $99,000. At that date, the fair value of the noncontrolling interest was $33,000. The book value of Slice's net assets at acquisition was $95,000. The book values and fair values of Slice's assets and liabilities were equal, except for Slice's buildings and equipment, which were worth $19,000 more than book value. Accumulated depreciation on the buildings and equipment was $30,000 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 $3,400. 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: Pie Corporation Debit $ 52,500 80,000 100,000 40,000 368,000 98,625 123,000 40,000 24,000 11,000 12,500 34,000 Slice Company Credit Credit Item Cash Accounts Receivable Debit $ 29,000 20,000 33,000 23,000 162,000 Inventory Land Buildings & Equipment Investment in Slice Company Cost of Goods Sold 108,000 24,000 10,000 4,000 5,000 18,000 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 $137,000 30,000 10,000 224,500 199,000 101,000 269,000 13,125 $ 40,000 9,000 5,000 102,000 66,000 29,000 185,000 $983,625 $983,625 $436,000 $436, 000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 18E
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Question
Transcribed Image Text:Consolidation
Worksheet Entries
A.
B
D
>
Record the basic consolidation entry.
Note: Enter debits before credits.
Entry
Accounts
Debit
Credit
Record entry
Clear entry
view consolidation entries
Consolidation
Worksheet Entries
< A
B
D
>
Record the amortized excess value reclassification entry.
Note: Enter debits before credits.
Entry
Accounts
Debit
Credit
Record entry
Clear entry
view consolidation entries
Consolidation
Worksheet Entries
A
в
D
>
Record the excess value (differential) reclassification entry.
Note: Enter debits before credits.
Entry
Accounts
Debit
Credit
3
Record entry
Clear entry
view consolidation entries
Consolidation
Worksheet Entries
А в с
>
Record the optional accumulated depreciation consolidation entry.
Note: Enter debits before credits.
Entry
Accounts
Debit
Credit
Record entry
Clear entry
view consolidation entries
Transcribed Image Text:Pie Corporation acquired 75 percent of Slice Company's ownership on January 1, 20X8, for $99,000. At that date, the fair value of the
noncontrolling interest was $33,000. The book value of Slice's net assets at acquisition was $95,000. The book values and fair values
of Slice's assets and liabilities were equal, except for Slice's buildings and equipment, which were worth $19,000 more than book
value. Accumulated depreciation on the buildings and equipment was $30,000 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 $3,400. 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:
Pie Corporation
Debit
$ 52,500
80,000
100,000
Slice Company
Debit
$ 29,000
20,000
33,000
23,000
162,000
Credit
Credit
Item
Cash
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
40,000
368,000
98,625
123,000
40,000
24,000
11,000
12,500
34,000
108,000
24,000
10,000
4,000
5,000
18,000
$137,000
30,000
10,000
224,500
199,000
101,000
269,000
13,125
$983,625
$ 40,000
9,000
5,000
102,000
66,000
29,000
185,000
Common Stock
Retained Earnings
Sales
Income from Slice Company
$983,625
$436,000
$436,000
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