Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20x2, for $112,700. At that dat

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Pop Corporation Acquired 70 Percent Of Soda Company S Voting Common Shares On January 1 20x2 For 112 700 At That Dat 1 (69.71 KiB) Viewed 85 times

Pop Corporation Acquired 70 Percent Of Soda Company S Voting Common Shares On January 1 20x2 For 112 700 At That Dat 2 (81.62 KiB) Viewed 85 times

Pop Corporation Acquired 70 Percent Of Soda Company S Voting Common Shares On January 1 20x2 For 112 700 At That Dat 3 (100.1 KiB) Viewed 85 times

Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20x2, for $112,700. At that date, the noncontrolling interest had a fair value of $48,300 and Soda reported $71,000 of common stock outstanding and retained earnings of $31,000. The differential is assigned to buildings and equipment, which had a fair value $28,000 higher than book value and a remaining 10-year life, and to patents, which had a fair value $31.000 higher than book value and a remaining life of five years at the date of the business combination. Trial balances for the companies as of December 31, 20X3, are as follows: Pop Corporation Soda Company Item Debit Credit Debit Credit Cash & Accounts Receivable $ 16, 400 $ 22,600 Inventory 166,000 36,000 Land 81,000 41,000 Buildings & Equipment 350,000 261,000 Investment in Soda Company 117,200 Cost of Goods Sold 187,000 80,800 Depreciation Expense 20,000 15,000 Interest Expense 17,000 6,200 Dividends Declared 31,000 16,000 Accumulated Depreciation $141,000 $ 85,000 Accounts Payable 93,400 36,000 Bonds Payabl 219, 250 94,000 Bond Premium 1,600 Comenon Stock 121,000 71,000 Retained Earningo 128,900 61,000 Sales 261,000 130,000 Other Income 10,600 Income from Soda Company 10,450 $985,600 $985,600 478,600 $478,600 On December 31, 20X2, Soda purchased Inventory for $31.500 and sold it to Pop for $45,000. Pop resold $30,000 of the inventory (ie, $30,000 of the $45,000 acquired from Soda) during 20x3 and had the remaining balance in inventory at December 31, 20x3. During 20X3, Soda sold inventory purchased for $56,000 to Pop for $80,000, and Pop resold all but $25,000 of its purchase. On March 10, 20X3, Pop sold inventory purchased for $15,000 to Soda for $30,000. Soda sold all but $7,800 of the inventory prior to December 31, 20X3. Assume Pop uses the fully adjusted equity method, that both companies use straight-line depreciation, and that no property, plant, and equipment has been purchased since the acquisition Required: a. Prepare all consolidation entries needed to prepare a full set of consolidated financial statements at December 31, 20X3, for Pop and Soda. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
No Entry Credit А A 1 Accounts Common stock Retained earnings Income from Soda Company NCI in NI of Soda Company Dividends declared Investment in Soda Company NCI in NA of Soda Company Debit 71.000 61,000 16,750 8,850 16,000 97,950 43,650 B 2 6,200 2,800 Amortization expense Depreciation expense Income from Soda Company NCI in NI of Soda Company 6.300 2,700 с 3 3 Buildings and equipment Patents Accumulated depreciation Investment in Soda Company NCI in NA of Soda Company 28,000 18,600 5,600 х 36,540 15,660 D 4 55,000 Accumulated depreciation Buildings and equipment 55,000 E 5 NCI in NA of Soda Company Investment in Soda Company Cost of goods sold OOO 3,180 X 7,420 10.600 X F 6 NCI in NA of Soda Company Investment in Soda Company Inventory 1,350 3,150 4,500 G 7 Sales 131,000 Cost of goods sold 106,200 Inventory 24,800 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.
dated Financial fatement Worksheet For 20x3 Consolidation Entries DR CR Pop Corp. Soda Co. Consolidated $ 130,000$ 110,000 $ $ 261,000 10,600 (187,000) (20,000) (17,000) 107,600 (80,800) (15,000) (6,200) 2,800 281,000 10,600 (160,200) (37,800) (23,200) (6,200) 0 64,200 (6,150) 58,050 6,200 16.750 10.450 58,050 28,000 135,750 6,300 113,900 2,700 $ 116,600 8,850 $ 144,600 $ 58,050 $ 28,000 $ $ $ 61,000 144,600 128,900 58,050 (31,000) 155,950 $ 61,000 28,000 (16,000) $ 73,000 116,600 16,000 $ 132,600 128,900 58,050 (31,000) 155,950 $ $ 205,600 $ Income Statement Sales Other Income Less: COGS Less: Depreciation Expense Less: Interest Expense Less: Amortization Expense Income from Soda Company Consolidated Net Income NCI in Net Income Controlling Interest in Net Income Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance Balance Sheet Cash and Accounts Receivable Inventory Land Buildings & Equipment Less: Accumulated Depreciation Investment in Soda Company Patents Total Assets Accounts Payable Bonds Payable Bonds Premium Common Stock Retained Earnings NCI IN NA of Soda Company Total Liabilities & Equity $ SIS 15,900 16,400 166,000 81,000 350,000 (141,000) 117,200 $ 22,600 36,000 41,000 261,000 (85,000) 39,000 186,100 122,000 589,000 (181,600) 0 28,000 50,000 9,450 18,600 106,050 50,000 5,600 126,650 $ 198,150 $ $ 589,600 $ 93,400 219,250 18,600 773,100 129,400 313,250 $ $ 275,600 Is 36,000 94,000 1,600 71,000 73.000 1,600 121,000 155,950 71,000 205,600 4,050 280,650 132,600 55,950 188,550 121,000 155,950 51,900 773,100 $ 589,600 S 275,600 $ $ $