d. With respect to the deferred gain on intercompany sale, what effect (i.e., amount) will it have on the [AD]] entry necessary to prepare the consolidated financial statements for the year ended December 31, 2016? In addition, specify the account that will be debited and the account that will be credited in the [ADJ] entry for the effect of the deferred gain on intercompany sale. Prepare the [AD]] consolidation entry for December 31, 2016 to show the effect of the deferred gain on the intercompany sale. Consolidation Journal [AD] gain] Description [idep] e. Prepare the required [] consolidation entry in 2016 (assuming the subsidiary is still holding the equipment). Consolidation Journal Equipment Description 0 Debit D 0 D D 0 Debit 0 Credit 0 0 0 0 Credit 0 0 0 0 0
d. With respect to the deferred gain on intercompany sale, what effect (i.e., amount) will it have on the [AD]] entry necessary to prepare the consolidated financial statements for the year ended December 31, 2016? In addition, specify the account that will be debited and the account that will be credited in the [ADJ] entry for the effect of the deferred gain on intercompany sale. Prepare the [AD]] consolidation entry for December 31, 2016 to show the effect of the deferred gain on the intercompany sale. Consolidation Journal [AD] gain] Description [idep] e. Prepare the required [] consolidation entry in 2016 (assuming the subsidiary is still holding the equipment). Consolidation Journal Equipment Description 0 Debit D 0 D D 0 Debit 0 Credit 0 0 0 0 Credit 0 0 0 0 0
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter6: Audit Evidence
Section: Chapter Questions
Problem 15CYBK
Related questions
Question
Please help! Cost method is extremely confusing to me! Zooming in to see the numbers helps!
Dont Allow image format
![d. With respect to the deferred gain on intercompany sale, what effect (i.e., amount) will it have on the [AD]] entry necessary to prepare the consolidated financial statements for the year ended December 31, 2016? In addition, specify the account that will be
debited and the account that will be credited in the [ADJ] entry for the effect of the deferred gain on Intercompany sale.
Prepare the [ADJ] consolidation entry for December 31, 2016 to show the effect of the deferred gain on the intercompany sale.
Consolidation Journal
[AD]]
[gain]
[idep]
Description
Equipment
+
÷
Description
e. Prepare the required [1] consolidation entry in 2016 (assuming the subsidiary is still holding the equipment).
Consolidation Journal
+
Debit
+
+
+
0
0
Debit
Credit
0
0
0
0
0
0
0
Credit
0
0
0
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faaae2147-9264-47d1-984e-b2380e2f6ae6%2F7087f1df-ac02-4579-9a29-5d24c002a5af%2Fd82x1u8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:d. With respect to the deferred gain on intercompany sale, what effect (i.e., amount) will it have on the [AD]] entry necessary to prepare the consolidated financial statements for the year ended December 31, 2016? In addition, specify the account that will be
debited and the account that will be credited in the [ADJ] entry for the effect of the deferred gain on Intercompany sale.
Prepare the [ADJ] consolidation entry for December 31, 2016 to show the effect of the deferred gain on the intercompany sale.
Consolidation Journal
[AD]]
[gain]
[idep]
Description
Equipment
+
÷
Description
e. Prepare the required [1] consolidation entry in 2016 (assuming the subsidiary is still holding the equipment).
Consolidation Journal
+
Debit
+
+
+
0
0
Debit
Credit
0
0
0
0
0
0
0
Credit
0
0
0
0
0
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q…
Accounting
ISBN:
9781305080577
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
South-Western College Pub
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q…
Accounting
ISBN:
9781305080577
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
South-Western College Pub
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning