Pizza Corporation Acquired 100 Percent of Slice Company on January

Essay

Pizza Corporation acquired 100 percent of Slice Company on January 1,20X5,for $350,000.Following are selected account balances from Pizza and Slice Corporation as of December 31,20X5:

Additional Information:
On January 1,20X5 the fair market value of Slice's assets equaled their book value with the exception of Plant Assets (with an estimated economic life of 6 years)which had a fair market value in excess in Slice's depreciable assets of $33,000.
Pizza used the equity method in accounting for its investment in Slice.
Detailed analysis of receivables and payables showed that Slice owed Pizza $10,000 on December 31,20X5.
Required:
a.Give all journal entries recorded by Pizza with regard to its investment in Slice during 20X5.
b.Give all consolidating entries needed to prepare a full set of consolidated financial statements for 20X5.
c.Prepare a three-part consolidation worksheet as of December 31,20X5.