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: Price Company Consolidated Cash $22,960 $40,015 Accounts receivable 31,920 59,330 Inventory 121,760 175,450 Investment in Shipley Company 193,560 —0— Plant and equipment (net) 199,520 320,530 Land 123,190 205,993    Total $692,910 $801,318 Accounts payable $41,610 $115,860 Note payable 97,900 97,900 Noncontrolling interest in Shipley Company —0— 34,158 Common stock 304,200 304,200 Other contributed capital 155,970 155,970 Retained earnings 93,230 93,230    Total $692,910 $801,318 On the date of acquisition, the stockholders’ equity section of Shipley Company’s balance sheet was as follows: Common stock $84,810 Other contributed capital 92,240 Retained earnings 44,730 Total $221,780 (a) 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

Answer 1

34158 Non controlling Interest - 15.2. Aescontrolling Interest A. 34158 227718 ( Implied value ) * Implied value = Parent's value + NCI = 193560 +34158 = 2277 18 Gredit Particulares. Common Stock other contributed capital Shipley Retring earrings - Shipley Fond (227718-221280) To zamestment in Shipley To Nonconkobling Interest Debit 84810 92240 44 7.30 5938 193560 34158