Pop Corporation acquired 70 percent of Soda Company’s voting common shares on January 1, 20X2, f

Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $119,000. At that date, the noncontrolling Interest had a falr value of $51,000 and Soda reported $70,000 of common stock outstanding and retained earnings of $33,000. The differential is assigned to buildings and equipment, which had a falr value $29,000 higher than book value and a remaining 10-year life, and to patents, which had a fair value $38,000 higher than book value and a remaining life of five years at the date of the business combination. Trial balances for the companles as of December 31, 20X3, are as follows: Pop Corporation Debit Credit Soda Company Debit Credit $ 24,600 38,000 43,000 263,000 Item Cash & Accounts Receivable Inventory Land Buildings & Equipment Investment in Soda Company Cost of Goods Sold Depreciation Expense Interest Expense Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Bond Premium Common Stock Retained Earnings Sales Other Income Income from Soda Company 18,400 168,000 83,000 370,000 117, 235 189,000 20,000 19,000 33,000 82,800 15,000 8,200 18,000 143,000 95,400 240,790 $ 75,000 38,000 110,000 1,600 70,000 63,000 135,000 123,000 130, 900 263,000 12,600 8,945 $1,017,635 $1,017,635 $492,600 $492,600 On December 31, 20X2, Soda purchased Inventory for $31,200 and sold it to Pop for $48,000. Pop resold $30,000 of the Inventory (1.e., $30,000 of the $48,000 acquired from Soda) during 20X3 and had the remaining balance in Inventory at December 31, 20X3. During 20X3, Soda sold Inventory purchased for $65,000 to Pop for $100,000, and Pop resold all but $29,000 of its purchase. On March 10, 20X3, Pop sold Inventory purchased for $17,000 to Soda for $34,000. Soda sold all but $8,500 of the Inventory prior to December 31, 20X3. Assume Pop uses the fully adjusted equity method, that both companles 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 fleld.) Consolidation Worksheet Entries A B C D E F G Record the basic consolidation entry. Note: Enter debits before credits. Entry Accounts Debit Credit Record entry Clear entry view consolidation entries Consolidation Worksheet Entries C D E F G Record the amortized excess value reclassification entry. Note: Enter debits before credits. Accounts Debit Credit Entry 2 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries Consolidation Worksheet Entries Consolidation Worksheet Entries Consolidation Worksheet Entries We were unable to transcribe this image

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