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Pizza Corporation acquired 80 percent ownership of Slice Products Company on January 1, 20X1, for $153,000. On that date, the fair value of the noncontrolling interest was $38,250, and Slice reported retained earnings of $44,000 and had $99,000 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: Item Cash & Receivables Inventory Land Buildings & Equipment Investment in Slice Products Company Cont of Goods Sold Depreciation Expense Inventory Losses Dividends Declared Necumulated Depreciation Accounts Payable Notes Payable Common Stock Retained Earnings Sales Income from Slice Products Company Pizza slice Corporation Products Company Debit Credit Debit Credit 87,000 $ 77,000 262,000 91,000 86,000 86.000 507,000 169.000 188,260 113,000 44,000 22.000 12.000 12,000 5.000 44,000 22,800 $ 185,000 $ 84,000 55,000 12,000 246, 320 115,800 292.000 99,000 306,000 89,000 204,000 107,000 32,940 $1,321,260 $1,321,260 $506,800 $506,800 Additional Information b. Prepare all consolidation entries needed to prepare consolidated statements for 20X5. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list transaction list No Event Credit Debit 99,000 89,000 36,800 Accounts Common stock Retained earnings Income from Slice Products Company NCI in Nl of Slice Products Company Dividends declared Investment in Slice Products Company NCI in NA of Slice Products Company 22,800 Depreciation expense Income from Slice Products Company NCI in Nl of Slice Products Company 3,860 48.250 Buildings and equipment Accumulated depreciation 22,000 Income from Slice Products Company NCI in NA of Slice Products Company D4 Accounts payable 10,000 c. Prepare a three-part worksheet as of December 31, 20X5. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.) PIZZA CORPORATION AND SUBSIDIARY Worksheet for Consolidated Financial Statements December 31, 20x5 Consolidation Entries Pizza Corp. Slice Products Co. _DR C R Consolidated Income Statement Sales $ 1 204,000 $ (113,000) (22,000) (12.000) 32, 9401 89.940 $ 107,000 (44,000) (12.000) (5,000)| 311,000 (157,000) (34,000) (17,000) 3 $ 6,800 36,800 3,860 3.860 45,000 $ $ 103,000 Less: COGS Less: Depreciation expense Less: Inventory losses Income from Slice Products Company Consolidated net income NCI in net income Controlling Interest in Net Income Statement of Retained Earnings Beginning balance Net Income Loss Dividends declared $ 89,940 S 4 6,000 $ 35,800 $ 3,860 S 103,000 $ $ $ $ 300,000 89,940 (44.000) 89,000 6,000 (22. 800 89,000 36,800 4 3,860 2,800] 306,000 103,000 (44000) 2 (5,000) (17,000) (12,000) 32,940 89,940 $ $ 36,800 36,800 46,000 $ 3,860 3,860 $ $ 103,000 $ 89,940 $ 46,000 $ 36,800 $ 3,860 $ 103,000 $ $ $ $ 89,000 36,800 306,000 89.940 (44,000) 351,940 89,000 46,000 (22,800) 112,200 3,860 22,800 26,660 306,000 103,000 (44,000) 365,000 $ $ $ 125,800 $ $ Less: Inventory losses Income from Slice Products Company Consolidated net income NCI in net income Controlling Interest in Net Income Statement of Retained Earnings Beginning balance 1 2 Net income Less: Dividends declared Ending Balance Balance Sheet Cash and receivables Inventory Land Buildings and equipment Less: Accumulated depreciation Investment in Slice Products Company Total Assets Accounts payable Notes payable Common stock Retained earnings NCI in NA of Slice Products Company Total Liabilities and Equity $ $ 10,000 $ 87,000 262,000 86,000 507.000 (185,000) 77,000 91,000 86,000 169,000| (84,000) 154,000 353,000 172,000 724,250 (291,000) 48,250 22,000 $ 48,250 $ 32,000 $ $ $ $ 757,000 55,000 246,320 292,000 351,940 339,000 12,000 115,800 99,000 112,200 1,112,250 67,000 362,120 292,000 365,000 99,000 125,800 26,660 945,260 $ 339,000 $ 224,800 $ 26,660 $ 1,086,120

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