a) Prepare any necessary journal entries in the consolidation journal to adjust for this transaction during the year ended 30 June 20X2. Cost of goods sold → Income tax expense + Dr (Eliminate the intra-group revenue/expense on the sale before tax) Dr ⇒ → → Cr (Adjust for tax effects of elimination of intra-group transaction) b) Prepare any necessary journal entries in the consolidation journal to adjust for this transaction during the year ended 30 June 20X3. Dr Cr = (Eliminate impact of prior year's intra-group transaction)
Q: At the start of the year, Kylie’s time deposit has a balance of 250,000. At the end of the year, the…
A: Return on Deposit :— The returns on Fixed Deposits are the fixed interest that you get for investing…
Q: On March 1, Wayne Michaels bought 10 bonds from a particular company with a coupon rate of 9.625%.…
A: Bonds are a form of investment which is secured in terms of fixed coupon or interest payments and…
Q: On November 10 JT's Consulting Services purchased office equipment on ?account for $12,000. Which…
A: In double entry accounting each transaction effect two account with same amount both debit and…
Q: Discussion Week 5: Richmond, Inc. operates 44 shopping malls. Two years ago, the Richmond Board of…
A: Ethical practices are very important in every aspect of business, whether it is related to any…
Q: Compute, in accordance with IAS 2 Inventories, the value at which the inventory of these motorcycles…
A: As per IAS 2 Inventories, Inventories are valued at the cost or net realisable value (NRV) whichever…
Q: Lawson Consulting had the following accounts and amounts on December 31. The Retained Earnings…
A: The financial statements of the business includes the income statement and balance sheet. The income…
Q: Which of the following shows how the year-end adjustment to recognize supplies expense will affect a…
A: Supplies Expense :— It is an expense account. It means purchase of inventory. Year end adjustment…
Q: Mickley Company's plantwide predetermined overhead rate is $21.00 per direct labor-hour and its…
A: The expenses incurred during the creation of a product are known as manufacturing costs. Direct…
Q: Cost of Materials Issuances Under the FIFO Method An incomplete subsidiary ledger of materials…
A: Received Issued Balance Receiving Report Number Quantity Unit Price Materials Requisition Number…
Q: Pacific Gas and Electric Company is a large gas and electric utility operating in northern and…
A: Lets understand the basics. For calculating earning per share, we need to use below formula. Earning…
Q: (2) (4) (8) Supplies 2,450 (8) 1,400 Common Stock 35,100 Operating Expenses 3,850 1,400 Prepare the…
A: Recording of journal entries is one of the initial step of financial accounting process. Under this,…
Q: gross margin
A: Since you have specifically asked from one part, we have answered the same for you. Gross margin…
Q: 1 Build the unadjusted trial balance columns from the given information. Only input amounts for…
A:
Q: The following account balances were drawn from the Year 1 financial statements of Grayson Company:…
A: Introduction: Common stock refers to ownership in the shares issued by the corporation. Holders of…
Q: Using the information from your worksheet above, prepare appropriate journal entries to record the…
A: Depreciation Accounting :— Depreciation is the Decrease in Value of Assets due to wear, Tear and…
Q: On 1 January 2020, Halwani Construction Company entered into a two-year lease for an excavator. The…
A: Lease liability refers to the obligation which is of financial nature against the payments required…
Q: Give the consolidation entry or entries needed to prepare a consolidated balance sheet immediately…
A: It has been given in the question that on the date of acquisition which is on December 31, 20X2 the…
Q: Question Content Area Cash Flows from (Used for) Operating Activities Indicate whether each of the…
A: Cash Flow Statement :— It is one of the financial statement that shows change in cash and cash…
Q: On 1/1/2022 - Rami purchased a new machine paying $30,000 cash along with voyage insurance $1000,…
A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…
Q: Using the data below compute the Current Ratio and Quick Ratio Show your solutions Razor Company has…
A: Ratio analysis is one of the important decision making tool used in management accounting. Under…
Q: The following transactions were completed by the company. a. The owner invested $17,200 cash in the…
A: Accounting equation refers to the equation which forms the basics of the accounting as this equation…
Q: City Pizza is adding salads and pasta dishes to their available menu items. The they will sell 1…
A: Management Accounting - In order to assist managers in making decisions, management accounting can…
Q: The following information of Mimosa General Dealers for July 2021 has been provided to you: •…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: Question 1 Dividend Policy The following represents the stockholder's equity account of Security…
A: EPS is earnings per share, which means earnings and income available for each common shareholder.…
Q: Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the…
A: Introduction: Process costing is used in mass production of items, where the cost of individual item…
Q: The manager of the Fleet division of Potlatch Automotive is evaluated on her division’s return on…
A: Return on investment=Operating MarginInvested Capital×100 Residual Income=Operating Margin-Required…
Q: Tammy Company paid cash to purchase a long-term operational asset. The cost of the asset will be…
A: Option 1 is incorrect. At the end of the asset's useful life, the cost won't be expensed…
Q: please anser and explain Including the new proposed term loan, what is Nuts n' Seeds Incorporated's…
A: Answer:- Debt to equity ratio meaning:- The debt-equity ratio serves as a gauge for how equally…
Q: Delph Company uses a job-order costing system and has two manufacturing departments-Molding and…
A: Predetermined overhead rate is the estimated rate which is determined to compute the estimated…
Q: Wages paid to assembly workers Wages paid to painters President's salary Plastic tubing Assembly…
A: Fixed and variable costs seem to be two significant components of any goods or service's cost. When…
Q: How do I calculate the percentage of total revenue that end as net earnings
A: The net earnings are the net profit drives from the sale revenue after deducting cost, operating and…
Q: Which of the following statements is true regarding accrual accounting? Multiple Choice Revenue is…
A: Accrual accounting: Accrual accounting is a accounting method which says the entity should record…
Q: Bell Company produces stainless steel drink tumblers, its only product. These tumblers are stamped…
A: Cost of job : These are the expense incurred to complete the job. Material, labour are variable…
Q: Sales Gross profit Indirect labor Indirect materials Other factory overhead Materials purchased…
A: A cost sheet is a method of allocating total costs into different categories. It helps to identify…
Q: Creative Advertising obtained 12% 5-year loan of $20,000 from the bank. Which ?account is debited…
A: "Debit what comes in, Credit what goes out" is the second golden rule of accounting which will be…
Q: (2) Compute total asset turnover for the current year and one year ago. Current Year: 1 Year Ago:…
A: The total asset turnover ratio helps in the measurement of the efficiency of the assets of the…
Q: The following transaction incurred in Guarantee section in the main branch of Petra bank on Monday…
A: According to the given question, we need to prepare the journal entries of bank guarantees. Journal…
Q: Selected data about Pitkin Company's manufacturing operations at two levels of activity are given…
A: Variable Cost :— Under the Marginal Costing System Variable Cost is a Cost which is Varry Per unit.…
Q: Pam Fisher opens a web consulting business called Fisher Consulting and completes the following…
A: Statement of owners equity :— It is one of the financial statement that shows capital introduced and…
Q: Compute cost of goods sold using the following information. Merchandise inventory, beginning Cost of…
A: This question requires us to compute the Cost of Goods Sold. Cost of Goods Sold = Beginning…
Q: Assess the Federal net operating loss rules. Scenario: The Smith Company, a C Corporation, in 2021…
A: The Federal income taxes are require to be paid on the income earned during the taxable financial…
Q: Frank and Bob are equal members in Soxy Socks, LLC. When forming the LLC, Frank contributed $44,000…
A: The original Amount of built-in gain on the contributed land must be allocated to the contributing…
Q: Factory Overhead Rates, Entries, and Account Balance Eclipse Solar Company operates two factories.…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: ?Paid $500 for a utility bill. Which account is debited Salaries Expense Supplies Equipment…
A: Salaries expenses account :— It is an expense account. This account is debited when salaries expense…
Q: The following selected transactions were completed during October of the current year: 1. Billed…
A: Journal entries are the daily transactions which are recorded in the books of accounts. These are…
Q: Badgersize Company has the following information for its Forming Department for the month of August.…
A: The work-in-process inventories at the conclusion of an accounting cycle are generally referred to…
Q: selling per year's of capital if Mala Prohibita will issue new shares of its ordinary shares? ution:…
A: Cost of capital: it is the expected rate that an investor wants from its investment. while computing…
Q: According to the single index model, the factor that drives the returns of all assets is: a. Money.…
A: Single index model :— This model is used to calculate risk and return on the stock. According to…
Q: Journal entries Crazy Mountain Tours Co. is a travel agency. The nine transactions recorded by Crazy…
A: Journal Entries :— It is an act of recording transaction in book of account when it is occured for…
Q: Please answer with valid reason True or False In general Before Tax IRR should be lower than…
A: IRR :— Internal rate of return is the rate of Discount at which the sum of Discounted cash Inflow…
Step by step
Solved in 3 steps
- Parent Company owns 90% of Subsidiary Company. For the current year, Parent and Subsidiary each report sales of P1,000,000 and P900,000 each, respectively. Also in the current year, Subsidiary sold goods to Parent P200,000. 40% of the goods purchased by the Subsidiary still remain unsold by the end of the year. Parent and Subsidiary have gross profit rates of 20% and 10% respectively and also report ending inventory of P85,000 and P90,000, each respectively. Required: Determine the consolidated inventory at year-end, consolidated cost of sales. and consolidated salesParent Company owns 90% of Subsidiary Company. For the current year, Parent and Subsidiary each report sales of P1,000,000 and P900,000 each, respectively. Also in the current year, Subsidiary sold goods to Parent P200,000. 40% of the goods purchased by the Subsidiary still remain unsold by the end of the year. Parent and Subsidiary have gross profit rates of 20% and 10% respectively and also report ending inventory of P85,000 and P90,000, each respectively. 1. Determine consolidated sales 2. Determine consolidated consolidated cost of sales 3. Determine consolidated inventory at year-end.Pre-consolidation bookkeeping, upstream intercompany sales, profits in ending inventory - Cost method Assume a parent company owns a 100% controlling interest in its long-held subsidiary. The following excerpts are from the parent’s and subsidiary’s “stand alone” pre-consolidation income statements for the year ending December 31, 2019, prior to any investment bookkeeping or intercompany adjustments: Parent Subsidiary Revenues $4,000,000 $2,500,000 Cost of goods sold (2,800,000) (1,500,000) Gross profit 1,200,000 1,000,000 Selling general & administrative expenses (780,000) (606,000) Net income $420,000 $394,000 On January 1, 2019, neither company held any inventories purchased from the other affiliate. All of the sales made by either company have the same gross margin regardless of whether they are made to affiliates or non-affiliates. The subsidiary declared and paid $200,000 of dividends during 2019. Assume during the year ended December 31, 2019, the subsidiary sold…
- Parent and its 70% owned Subsidiary report the following at December 31 of the current year: Parent Net Income, P300,000; Parent Dividends, P20,000. Subsidiary Net Income, P250,000; Subsidiary Dividends, P20,000. On January 3, of the current year, Parent sold equipment to Subsidiary with a remaining 5-year life reporting a gain on sale of P20,000. The gain is included in the net income reported by the Parent. 1. Determine the equity holders of parent’s net income and the non-controlling interest net income. 2. Determine the equity holders of parent's net income.Pre-consolidation bookkeeping, downstream intercompany sales, profits in ending inventory-Equity method Assume a parent company owns a 100% controlling interest in its long-held subsidiary. The following excerpts are from the parent's and subsidiary's "stand alone" pre-consolidation income statements for the year ending December 31, 2013, prior to any investment bookkeeping or intercompany adjustments: Parent Subsidiary Revenues $4,200,000 $2,850,000 Cost of goods sold (2,730,000) (1,710,000) Gross profit 1,470,000 1,140,000 Selling general & administrative expenses (975,000) (757,500) Net income $495,000 $382,500 On January 1, 2013, neither company held any inventories purchased from the other affiliate. All of the sales made by either company have the same gross margin regardless of whether they are made to affiliates or non-affiliates. Assume that during the year ended December 31, 2013, the parent sold to the subsidiary $250,000 of merchandise. At December 31, 2013, the…What is the amount of pre-acquisition earnings on the acquisition date consolidated income statement if the parent acquires 90 percent of the subsidiary’s stock and the following income statement accounts exist at the acquisition date? Parent Subsidiary Sales P250,000 P60,000 Cost of Goods Sold 120,000 12,000 Depreciation Expense 10,000 5,000 Operating Expenses 40,000 8,000 Income Tax Expense 32,000 14,000 2. Using the same information in No. 1, what is the imputed value of a subsidiary if the parent pays P56,000 for 80 percent of the subsidiary’s stock? Use the following information for question 3 and 4: Marksman acquired 100 percent of Tribal Transit for P275,000. At the date of acquisition, Fast Transit…
- Parent and its 80% owned Subsidiary report the following at December 31 of the current year: Parent Net Income, P100,000; Parent Dividends, P20,000, Parent Land, P500,000. Subsidiary Net Income, P80,000; Subsidiary Dividends, P10,000; Subsidiary Land, P300,000. On June 1, of the current year, Subsidiary sold land to Parent reporting a gain on sale of P10,000. The gain is included in the net income reported by the Subsidiary. 1. Determine the equity holders of parent’s net income and the non-controlling interest net income. 2. Determine the non-controlling interest net income.On January 1, 20X1, Rivera Company (RC) and Caventa Company (CC) each acquired 40% of the ordinaryvoting shares of Tulang Company (TC) for P500,000. They then both agreed to share control of TC.In 20X1, RC purchased goods from TC for P150,000. On December 31, 20X1, P80,000 of the goods purchasedremains in TC’s inventory. TC sells goods at 25% mark-up based on the sale.For the year ended December 31, 20X1, TC reported a profit of P400,000 and declared and paid dividends ofP150,0000. Also, the fair value of each venturer’s investment in TC is P600,000. There is no published quotationfor TC.RC and CC account for jointly controlled entities using the equity method.Required: Determine the following:1. The amount of income RC should recognize from TC.2. The value of RC’s investment in TC at December 31, 20X1.3. The amount of income CC should recognize from TC.4. The value of CC’s investment in TC at December 31, 20X1.Presto Inc. acquired 75% outstanding ordinary shares of Sun Corp. Presto regularly sells inventory to Sun Corp with profit. The computation of non-controlling interest in net income will be: Group of answer choices A. (Net income of subsidiary – realized profit in beginning inventory + unrealized profit in ending inventory) x 25% B. (Net income of subsidiary + amortization of overvalued assets – amortization of undervalued assets + realized profit in beginning inventory – unrealized profit in ending inventory) x 25% C. (Net income of subsidiary + amortization of overvalued assets – amortization of undervalued assets) x 25% D. (Net income of subsidiary + realized profit in beginning inventory – unrealized profit in ending inventory) x 25%
- H has a 75% owned subsidiary S. During the year ending 31 December 2021 H sold inventory to S for an invoice price of £800,000. S have since sold 75% of that inventory to third parties. The sale was at a mark-up of 25%on cost to H. S is the only subsidiary of H. What is the adjustment to inventory that would be included in the consolidated statement of financial position of H at the year-ending 31 December 2021 resulting from this sale? Show you calculations.Question: A Company own 90% of the outstanding shares of B Company and 80% of the outstanding shares of C Company. The companies sell goods to each other. For the current year, A sold goods to C for P250,000 at a 40% mark-up. C sold 70% of the goods to B for P250,000. B in turn sold 65% of the goods to outside parties for P300,000. 1 . Compute for the consolidated cost of sales. a) 274,120 b) 50,120 c) 59,528 d) 283,528 2 . Compute the consolidated gross profit. a) 149,880 b) 240,472 c) 249,880 d) 140,472CC Company sold inventory with a cost of P40,000 to its 90%-owned subsidiary, RR Corp., for P100,000 in 20X9. Range resold P75,000 of this inventory for P100,000 in 20X9. Based on this information, the amount of inventory reported on the consolidated financial statements at the end of 20X9 is ____.