- Pizza Corporation Acquired 80 Percent Ownership Of Slice Products Company On January 20x1 10 5158 000 On That Date The 1 (29.59 KiB) Viewed 136 times
Pizza Corporation acquired 80 percent ownership of Slice Products
Company on January 20X1.10 5158.000. On that date, the fait voue of the noncontoiling interest was $39.500, and Slice reported retained earnings of 548.000 and had $100.000 of common stock outstanding, Pizza has used the equity method in accounting for its investment in slice Tilal balance data for the two companies on December 31, 2045, are as follows: Iten Carh Receivable Investory Land Bugs Equdprent Invest in slite Products Coy Cost of Goods Sold Depreciation type I ventory losses Dividendi Oclared Acculated depreciation Accounts Payable Notes Payable Comen Stock Retate at Sales Income from Slice Products
Company Pina Slika Corporation Products Copy Delle Credit Debat Credit $ 67,000 571,000 270,000 100,000 $9,00 13,000 583,000 155,000 109,240 211,000 20,000 10,000 10,000 5,000 49,000 17,200 $ 199,000 $ 78,000 10,000 11,000 242,000 133,200 293,000 100,000 305,000 90,000 210,000 109,000 22,24 $1,524,34 51,194,340 5506,00 5926,200 Additional Information 1. On the date of combination, the fair value of Slice's depreciable assets was $49.500 more than book value. The accumulated depreciation on these assets was $10,000 on the acquistion date. The differential assigned to depreciable assets should be written off over the followng 10-year period 2. There was $12.000 of Intercorporate recevables and payables at the end of 20X5.
PIZZA CORPORATION AND SUBSIDIARY Worksheet for Consolidated Fancial Stats December 31, 2005 Consolidation Entries Pie C Slice Products Co. OR CR Conced 5 a 5 5 $ $ $ O $ $ 5 Income Stat Sales Lee COGS Lees Depreciation expen Lessentary se Income from Products
Company Consoleret come NC com Controlling Interest in Net Income
Statement of Retained Earnings Eeginning balance Niet income Less Odds declared Ending Balance Balance Shese Codec Inventory Land Buldings and man Les Accumbed decision Imantiske Products
Company Total Ass ACCO payable Notes pable Com ock Reidaming NC No Sicer
Company Total Liabilities and Equity 5 5 5 5 5