Pizza Corporation acquired 80 percent ownership of Slice Products Company on January 1, 20X1, for $148,000. On that date, the fair value of the noncontrolling interest was $37,000, and Slice reported retained earnings of $45,000 and had $93,000 of common stock outstanding. Pizza has used the equity method in accounting for its investment in Slice. Trial balance data for the two companies on December 31, 20X5, are as follows: Pizza Corporation Slice Products Company Item Debit Credit Debit Credit Cash & Receivables $ 86,000 $ 80,000 Inventory 270,000 94,000 Land 83,000 83,000 Buildings & Equipment 501,000 154,000 Investment in Slice Products Company 176,400 Cost of Goods Sold 115,000 45,000 Depreciation Expense 25,000 15,000 Inventory Losses 15,000 6,000 Dividends Declared 45,000 14,000 Accumulated Depreciation $ 193,000 $ 105,000 Accounts Payable 50,000 10,000 Notes Payable 270,160 99,000 Common Stock 282,000 93,000 Retained Earnings 296,000 83,000 Sales 201,000 101,000 Income from Slice Products Company 24,240 $ 1,316,400 $ 1,316,400 $ 491,000 $ 491,000 Additional Information On the date of combination, the fair value of Slice's depreciable assets was $47,000 more than book value. The accumulated depreciation on these assets was $10,000 on the acquisition date. The differential assigned to depreciable assets should be written off over the following 10-year period. There was $13,000 of intercorporate receivables and payables at the end of 20X5. Required: Please help me with below: Event General Journal Debit Credit 2 Cash Investment in Slice Products Company

Pizza Corporation acquired 80 percent ownership of Slice Products Company on January 1, 20X1, for $148,000. On that date, the fair value of the noncontrolling interest was $37,000, and Slice reported retained earnings of $45,000 and had $93,000 of common stock outstanding. Pizza has used the equity method in accounting for its investment in Slice. Trial balance data for the two companies on December 31, 20X5, are as follows: Pizza Corporation Slice Products Company Item Debit Credit Debit Credit Cash & Receivables $ 86,000 $ 80,000 Inventory 270,000 94,000 Land 83,000 83,000 Buildings & Equipment 501,000 154,000 Investment in Slice Products Company 176,400 Cost of Goods Sold 115,000 45,000 Depreciation Expense 25,000 15,000 Inventory Losses 15,000 6,000 Dividends Declared 45,000 14,000 Accumulated Depreciation $ 193,000 $ 105,000 Accounts Payable 50,000 10,000 Notes Payable 270,160 99,000 Common Stock 282,000 93,000 Retained Earnings 296,000 83,000 Sales 201,000 101,000 Income from Slice Products Company 24,240 $ 1,316,400 $ 1,316,400 $ 491,000 $ 491,000 Additional Information On the date of combination, the fair value of Slice's depreciable assets was $47,000 more than book value. The accumulated depreciation on these assets was $10,000 on the acquisition date. The differential assigned to depreciable assets should be written off over the following 10-year period. There was $13,000 of intercorporate receivables and payables at the end of 20X5. Required: Please help me with below: Event General Journal Debit Credit 2 Cash Investment in Slice Products Company

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter7: Corporations: Reorganizations

Section: Chapter Questions

Problem 27P

See similar textbooks

Related questions

Concept explainers

Question

	Pizza Corporation		Slice Products Company
Item	Debit		Credit		Debit	Credit
Cash & Receivables	$	86,000				$	80,000
Inventory		270,000					94,000
Land		83,000					83,000
Buildings & Equipment		501,000					154,000
Investment in Slice Products Company		176,400
Cost of Goods Sold		115,000					45,000
Depreciation Expense		25,000					15,000
Inventory Losses		15,000					6,000
Dividends Declared		45,000					14,000
Accumulated Depreciation				$	193,000			$	105,000
Accounts Payable					50,000				10,000
Notes Payable					270,160				99,000
Common Stock					282,000				93,000
Retained Earnings					296,000				83,000
Sales					201,000				101,000
Income from Slice Products Company					24,240
	$	1,316,400		$	1,316,400	$	491,000	$	491,000

Additional Information

On the date of combination, the fair value of Slice's depreciable assets was $47,000 more than book value. The accumulated depreciation on these assets was $10,000 on the acquisition date. The differential assigned to depreciable assets should be written off over the following 10-year period.
There was $13,000 of intercorporate receivables and payables at the end of 20X5.

Required:

Please help me with below:

Event	General Journal	Debit	Credit
2	Cash
	Investment in Slice Products Company

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.