Price Corporation acquired 100 percent ownership of Saver
Company on January 1, 20X8, for $183,000. At that date, the fair
value of Saver’s buildings and equipment was $42,000 more than the
book value. Buildings and equipment are depreciated on a 10-year
basis. Although goodwill is not amortized, Price’s management
concluded at December 31, 20X8, that goodwill involved in its
acquisition of Saver shares had been impaired and the correct
carrying value was $8,000.
Trial balance data for Price and Saver on December 31, 20X8, are as
follows:
Price Corporation | Saver Company | |||||||||||||||
Item | Debit | Credit | Debit | Credit | ||||||||||||
Cash | $ | 25,000 | $ | 32,000 | ||||||||||||
Accounts Receivable | 81,000 | 17,500 | ||||||||||||||
Inventory | 101,000 | 36,000 | ||||||||||||||
Land | 41,000 | 26,000 | ||||||||||||||
Buildings & Equipment | 295,000 | 173,500 | ||||||||||||||
Investment in Saver Company | 192,300 | |||||||||||||||
Cost of Goods Sold | 136,000 | 121,000 | ||||||||||||||
Wage Expense | 113,500 | 32,500 | ||||||||||||||
Depreciation Expense | 30,500 | 15,500 | ||||||||||||||
Interest Expense | 17,500 | 9,500 | ||||||||||||||
Other Expenses | 35,500 | 32,500 | ||||||||||||||
Dividends Declared | 41,000 | 21,500 | ||||||||||||||
Accumulated Depreciation | $ | 150,500 | $ | 95,000 | ||||||||||||
Accounts Payable | 100,000 | 27,000 | ||||||||||||||
Wages Payable | 28,000 | 14,500 | ||||||||||||||
Notes Payable | 161,000 | 2,000 | ||||||||||||||
Common Stock | 211,000 | 60,000 | ||||||||||||||
Retained Earnings | 113,000 | 40,000 | ||||||||||||||
Sales | 315,000 | 279,000 | ||||||||||||||
Income from Saver Company | 30,800 | |||||||||||||||
$ | 1,109,300 | $ | 1,109,300 | $ | 517,500 | $ | 517,500 | |||||||||
Required:
a. Prepare the following consolidating entries needed to prepare a
three-part consolidation worksheet as of December 31, 20X8.
(If no entry is required for a transaction/event, select
"No journal entry required" in the first account
field.)
Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $183,000. At...
Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $123,500. At that date, the fair value of Saver's buildings and equipment was $17,000 more than the book value. Accumulated depreciation on this date was $33,000. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, Price’s management concluded at December 31, 20X8, that goodwill involved in its acquisition of Saver shares had been impaired and the correct carrying value was $2,700....
Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20x8, for $158,000. At that date, the fair value of Saver's buildings and equipment was $32,000 more than the book value. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, Price's management concluded at December 31, 20x8, that goodwill involved in its acquisition of Saver shares had been impaired and the correct carrying value was $5,500. Trial balance data for Price and Saver...
Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $122,400. At that date, the fair value of Saver's buildings and equipment was $16,000 more than the book value. Accumulated depreciation on this date was $19,000. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, Price's management concluded at December 31, 20X8, that goodwill involved in its acquisition of Saver shares had been impaired and the correct carrying value was $2,500....
Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $109,600. At that date, the fair value of Saver's buildings and equipment was $15,000 more than the book value. Accumulated depreciation on this date was $15,000. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, Price’s management concluded at December 31, 20X8, that goodwill involved in its acquisition of Saver shares had been impaired and the correct carrying value was $2,600....
Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $122,400. At that date, the fair value of Saver's buildings and equipment was $16,000 more than the book value. Accumulated depreciation on this date was $19,000. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, Price's management concluded at December 31, 20X8, that goodwill involved in its acquisition of Saver shares had been impaired and the correct carrying value was $2,500....
Mill Corporation acquired 100 percent ownership of Roller Company on January 1, 20X8, for $128,000. At that date, the fair value of Roller's buildings and equipment was $20,000 more than book value. Accumulated depreciation on this date was $30,000. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, the management of Mill concluded at December 31, 20X8 that goodwill involved in its acquisition of Roller shares had been impaired and the correct carrying value was...
P4-33 Consolidation Worksheet at End of First Year of Ownership LO 4-5 Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $128,000. At that date, the fair value of Saver's buildings and equipment was $20,000 more than the book value. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, Price's management concluded at December 31, 20X8, that goodwill involved in its acquisition of Saver shares had been impaired and the...
Peanut Company acquired 100 percent of Snoopy Company’s outstanding common stock for $313,000 on January 1, 20X8, when the book value of Snoopy’s net assets was equal to $313,000. Peanut chooses to carry the investment in Snoopy at cost because the investment will be consolidated. Trial balance data for Peanut and Snoopy as of December 31, 20X8, are as follows: Peanut Company Snoopy Company Debit Credit Debit Credit Cash $ 233,000 $ 80,000 Accounts Receivable 191,000 82,000 Inventory 197,000 89,000...
How to computer the Accumulated depreciation? Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $19 1,000. The trial balances for the two companies on December 31, 20X7, included the following amounts: Sword Company Debit Credit $ 26,000 71,000 103,000 21,000 152,000 Item Cash Accounts Receivable Inventory Land Buildings and Equipment Investment in Sword Company Cost of Goods Sold Depreciation Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Mortgages Payable Common Stock Retained Earnings Sales...
Patriot Corporation acquired 80 percent ownership of Seahawk Corporation on January 1, 20X8, for $200,000. At that date, Seahawk reported common stock outstanding of $75,000 and retained earnings of $150,000. The fair value of the noncontrolling interest was $50,000. The differential is assigned to equipment, which had a fair value $25,000 greater than book value and a remaining economic life of five years at the date of the business combination. Seahawk reported net income of $40,000 and paid dividends of...