fifth of this goods inventory. The following information pertains to PP and SS's sales for 20x9: (see image below) In its 20x9 consolidated income statement, what amount should PP report as cost of sales? *
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- GG Co. had the following transactions with two subsidiaries, OO and RR during 2020: Sales of P105,000 to OO, Inc., with P31,500 gross profit, OO had P26,250 of this inventory on hand at year end. Purchases of raw materials totaling P420,000 from RR Corp., a wholly owned subsidiary. RR’s gross profit on the sale was P84,000. GG had P98,000 of this inventory remaining on December 31, 2020. Before eliminating entries, GG had combined current assets of P525,000. What amount should GG report in its December 31, 2020 consolidated financial position for current assets?CC 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 ____.In 2022, ABC Company sold inventory costing P150,000 to its 80%-owned subsidiary for P210,000. A portion of this was resold by the subsidiary in 2022 for P200,000. Other information available at the end of 2022 were as follows: Parent Subsidiary Sales P4,750,000 P2,700,000 Cost of sales 3,100,000 1,750,000 Net income 225,000 120,000 Dividends declared 150,000 150,000 Inventory From outsiders 120,000 60,000 From parent 63,000 How much is the consolidated inventory as of December 31, 2022? How much is the consolidated cost of sales for 2022? How much is the consolidated sales for 2022?
- In 2022, ABC Company sold inventory costing P150,000 to its 80%-owned subsidiary for P210,000. A portion of this was resold by the subsidiary in 2022 for P200,000. Other information available at the end of 2022 were as follows: Parent Subsidiary Sales P4,750,000 P2,700,000 Cost of sales 3,100,000 1,750,000 Net income 225,000 120,000 Dividends declared 150,000 150,000 Inventory From outsiders 120,000 60,000 From parent 63,000 How much is the consolidated cost of sales for 2022? How much is the consolidated sales for 2022? How much is the net income attributable to the parent for 2022?In 2022, ABC Company sold inventory costing P150,000 to its 80%-owned subsidiary for P210,000. A portion of this was resold by the subsidiary in 2022 for P200,000. Other information available at the end of 2022 were as follows: Parent Subsidiary Sales 4, 750,000 2,700,000 Cost of Sales 3,100,000 1,750,000 Net Income 225,000 120,000 Dividends declared 150,000 150,000 Inventory From Outsiders 120,000 60,000 From Parent 0 63,000 1. How much is the consolidated sales for 2022? 2. How much is the net income attributable to the parent for 2022? 3. How much is the net income attributable to the non-controlling interests for 2022?Selected information from the separate and consolidated income statements of Poster Corporation and its subsidiary, Sign Company for the year ended December 31, 20x2 are as follows: Poster Corp. Sign Co. Consolidated Sales P 600,000 P 420,000 P 924,000 Cost of Goods Sold 450,000 335,000 693,000 Gross Profit P 150,000 P 85,000 P 231,000 During 2025, Poster Corporation sold goods to Sign Company at the same mark-up on cost that Poster uses for all sales. At December 31, 20x2, Sign had not paid all of these goods and still held 25% of them in inventory. What is the amount of intercompany sale of inventor?
- Bisharp Corporation owns 80% of Rufflet, Inc. common stock. During 20A, Bisharp sold to Rufflet inventory of P250,000 on the same terms as sales made to third parties. Rufflet sold all of the inventory purchased from Bisharp in 20A. The following information pertains to Bisharp and Rufflet's sales for 20A, respectively: Sales P1,000,000 and P700,000; Cost of merchandise sold P400,000 and P350,000. What amount should Bisharp report as cost of merchandise sold in its 20A consolidated income statement?Alford Company and its 80 percent–owned subsidiary, Knight, have the following income statements for 2021: Alford Knight Revenues $ (500,000 ) $ (230,000 ) Cost of goods sold 300,000 140,000 Depreciation and amortization 40,000 10,000 Other expenses 20,000 20,000 Gain on sale of equipment (30,000 ) 0 Equity in earnings of Knight (36,200 ) 0 Net income $ (206,200 ) $ (60,000 ) Additional Information for 2021 Intra-entity inventory transfers during the year amounted to $90,000. All intra-entity transfers were downstream from Alford to Knight. Intra-entity gross profits in inventory at January 1 were $6,000, but at December 31, they are $9,000. Annual excess amortization expense resulting from the acquisition is $11,000. Knight paid dividends totaling $20,000. The noncontrolling interest's share of the subsidiary's income is $9,800. During the year, consolidated inventory rose by $11,000 while accounts…KK Co. holds 90% of the common stock of LL Co. During 20x2, KK reported sales of P1,120,000 and cost of goods sold of P840,000. For this same period, LL had sales of P420,000 and cost of goods sold of P252,000. Also during 20x2, KK sold merchandise to LL for P140,000. The subsidiary still possesses 40% of this inventory at the end of 20x2. KK had established the transfer price based on its normal markup. What are consolidated sales?
- Selected information from the separate and consolidated income statements of CHAELISA LTD.and as subsidiary, JENSOO INC. for the year ended December 31, 2021 are as follows: CHAELISA LTD. JENSOOINC. ConsolidatedSales P600,000 P420,000 P924,000COGS 450,000 330,000 693,000Gross profit P150,000 P 90,000 P231,000 During 2021, CHAELISA LTD. sold goods to JENSOO INC. at the same mark-up on cost that CHAELISA LTD. uses for all sales. At December 31, 2021, JENSOO INC. had not paid all of these goods and still held 37.5% of them in inventory. Compute for the original cost of goods in JENSOO INC.’s inventory acquired from Apple.(a) Jessica Ltd sold inventory during the current period to its wholly owned subsidiary, Amelie Ltd, for $15 000.These items previously cost Jessica Ltd $12 000. Amelie Ltd subsequently sold half the items to Ningbo Ltd for$8000. The tax rate is 30%. The group accountant for Jessica Ltd, Li Chen, maintains that the appropriateconsolidation adjustment entries are as follows: Dr Sales 15,000 Cr Cost of Sales 13,000Cr Inventory 2,000 Dr Deferred Tax Asset 300Cr Income Tax Exp 300Required(i) Discuss whether the entries suggested by Li Chen are correct, explaining on a line-by-line basisthe correct adjustment entry. (ii)Determine the consolidation worksheet entries in the following year, assuming the inventoryhas been –sold, and explain the adjustments on a line-by-line basis. (b) On 1 July 2016 Liala Ltd sold an item of plant to Jordan Ltd for $450000 when its’ carrying value in Liala Ltd bookwas $600000 (costs $900000, accumulated depreciation $300000). This…(a) Jessica Ltd sold inventory during the current period to its wholly owned subsidiary, Amelie Ltd, for $15 000.These items previously cost Jessica Ltd $12 000. Amelie Ltd subsequently sold half the items to Ningbo Ltd for$8000. The tax rate is 30%. The group accountant for Jessica Ltd, Li Chen, maintains that the appropriateconsolidation adjustment entries are as follows: Sales Dr $15,000 Cost of Sales Cr $13,000 Inventory Cr $2,000 Deferred Tax Asset Dr $300 Income Tax Expense Cr $300 Required:(i) Discuss whether the entries suggested by Li Chen are correct, explaining on a line-by-line basisthe correct adjustment entry.(ii)Determine the consolidation worksheet entries in the following year, assuming the inventoryhas been –sold, and explain the adjustments on a line-by-line basis.
