Question

On December 31, 2013, Price Company purchased a controlling interest in Shipley Company. The balance sheet of Price Company and the consolidated balance sheet on December 3, 2013, were as follows: Cash Accounts receivable Inventory Investment in Shipley Company Plant and equipment (net) Price Company $23,140 36,350 123,490 216,430 174,540 110,290 $684,240 Consolidated $40,992 52,500 151,399 -0- 331,390 223,723 $800,004 Land Total Accounts payable Note payable Noncontrolling interest in Shipley Company Common stock Other contributed capital Retained earnings Total $42,480 99, 100 -O- 295,900 179,490 67,270 $684,240 $120,050 99,100 38,194 295,900 179,490 67,270 $800,004 On the date of acquisition, the stockholders' equity section of Shipley Company's balance sheet was as follows: Common stock Other contributed capital Retained earnings Total $93,130 92,240 53,100 $238,470 (a) (a Prepare the investment elimination entry made to complete a consolidated balance sheet workpaper. Any difference between book value and the value implied by the purchase price relates to subsidiary land. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit D SHOW LIST OF ACCOUNTS LINK TO TEXT

Exercise 3-6 On December 31, 2013, Price Company purchased a controlling interest in Shipley Company. The balance sheet of Price Company and the consolidated balance sheet on December 3, 2013, were as follows: Price Company Consolidated Cash $23,140 $40,992 Accounts receivable 36,350 52,500 Inventory 123,490 151,399 Investment in Shipley Company 216,430 —0— Plant and equipment (net) 174,540 331,390 Land 110,290 223,723    Total $684,240 $800,004 Accounts payable $42,480 $120,050 Note payable 99,100 99,100 Noncontrolling interest in Shipley Company —0— 38,194 Common stock 295,900 295,900 Other contributed capital 179,490 179,490 Retained earnings 67,270 67,270    Total $684,240 $800,004 On the date of acquisition, the stockholders’ equity section of Shipley Company’s balance sheet was as follows: Common stock $93,130 Other contributed capital 92,240 Retained earnings 53,100 Total $238,470

(a) Prepare the investment elimination entry made to complete a consolidated balance sheet workpaper. Any difference between book value and the value implied by the purchase price relates to subsidiary land. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit

Answer 1

Pg Answer: @implied value = parent's value +wci = 216,430 +138,194 - $254, Gay - $38,194 $254,624 = 154. non controlling interest Tournal Entry credit (6) Account Titles and explanation Debit C4) common stock $93,130 other contributed capital-stopley $92,340 Retained Earnings-shipley $53,000 land (4854,624–238,470) $16,154 - investment in shipley company $216,430 Noncontrolling interest $38,194