Question

Exercise 3-6 On December 31, 2013, Price Company purchased a controlling interest in Shipley Company. The balance sheet of Price Company and the consolidated balance sheet on December 3, 2013, were as follows: Cash Accounts receivable Inventory Investment in Shipley Company Plant and equipment (net) Land Total Price Company $23,140 36,350 123,490 216,430 174,540 110,290 Consolidated $40,992 52,500 151,399 -0- 331,390 223,723 $684,240 $800,004 Accounts payable Note payable Noncontrolling interest in Shipley Company Common stock Other contributed capital Retained earnings Total $42,480 99,100 -0- 295,900 179,490 67,270 $684,240 $120,050 99,100 38,194 295,900 179,490 67,270 $800,004 On the date of acquisition, the stockholders' equity section of Shipley Company's balance sheet was as follows: Common stock Other contributed capital Retained earnings Total $93,130 92,240 53,100 $238,470 (a) Your answer is correct. Prepare the investment elimination entry made to complete a consolidated balance sheet workpaper. Any difference between book value and the value implied by the purchase price relates to subsidiary land. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Common Stock 93130 Other Contributed Capital 92240 Retained Earnings 53100 Land 161541 Investment in Shipley 216430 Noncontrolling Interest 38194 SHOW LIST OF ACCOUNTS LINK TO TEXT Attempts: 4 of 5 used

Exercise 3-6 On December 31, 2013, Price Company purchased a controlling interest in Shipley Company. The balance sheet of Price Company and the consolidated balance sheet on December 3, 2013, were as follows: Price Company Consolidated Cash $23,140 $40,992 Accounts receivable 36,350 52,500 Inventory 123,490 151,399 Investment in Shipley Company 216,430 —0— Plant and equipment (net) 174,540 331,390 Land 110,290 223,723    Total $684,240 $800,004 Accounts payable $42,480 $120,050 Note payable 99,100 99,100 Noncontrolling interest in Shipley Company —0— 38,194 Common stock 295,900 295,900 Other contributed capital 179,490 179,490 Retained earnings 67,270 67,270    Total $684,240 $800,004 On the date of acquisition, the stockholders’ equity section of Shipley Company’s balance sheet was as follows: Common stock $93,130 Other contributed capital 92,240 Retained earnings 53,100 Total $238,470

(a) Your answer is correct. Prepare the investment elimination entry made to complete a consolidated balance sheet workpaper. Any difference between book value and the value implied by the purchase price relates to subsidiary land. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT Attempts: 4 of 5 used

(b) Your answer is partially correct. Try again. Prepare Shipley Company’s balance sheet as it appeared on December 31, 2013. (List assets in order of liquidity.) SHIPLEY COMPANY Balance Sheet December 31, 2013For the Year Ended December 31, 2013For the Quarter Ended December 31, 2013 Assets $ $ Liabilities and Stockholders' Equity $ $

Answer 1

POO Answer: @ Investment in shipley company by price = 496,420 NCI = $38394 Total = $216,430+$ 38,194 - $254,624. investment in shipley company-NCi NCIA. = $38,194 $254,624 -15.). Journal Entry Account Titles and splanation Debitct7 common stock $ 93,130 Other contributed capital $99,240 $53,100 land 1$ 16,154 Cadit c6 2 Refained earnings Investment in shipley company Non controlling interest $216,430 $ 38,194 to second cliccination story

श ② balance sheet: cash Accounts Receivable $17,852 $16,150 $27,909 Inventory plant and Equipment mit land (203,723-110,290 – 16,154) $156,850 $92027 Total Assets $316,040 Accounts payable $27,510 93,120 Common stock other contributed capital $92240 Retained Earning $53.100 Lotal babilities and equity $316,040