Razor Afternoon Co. owns 80% interest in Slice Morning Co. During 2019, Razor sold inventories costing ₱200,000 to Slice for ₱300,000. One-fourth of the inventories were unsold as of December 31, 2019 and were included in Slice’s year-end statement of financial position at the purchase price from Razor. The individual financial statements of Razor and Slice on December 31, 2019 show the following information: Razor Slice Inventory 1,260,000 380,000 Sales 6,700,000 2,700,000 Cost of sales (3,015,000) (1,755,000) Gross profit 3,685,000 945,000 There are no fair value adjustments arising from the business combination date. Write the Eliminating Entries for Periodic Inventory System.
Razor Afternoon Co. owns 80% interest in Slice Morning Co. During 2019, Razor sold inventories costing ₱200,000 to Slice for ₱300,000. One-fourth of the inventories were unsold as of December 31, 2019 and were included in Slice’s year-end
|
|
Razor |
Slice |
|
Inventory |
1,260,000 |
380,000 |
|
Sales |
6,700,000 |
2,700,000 |
|
Cost of sales |
(3,015,000) |
(1,755,000) |
|
Gross profit |
3,685,000 |
945,000 |
There are no fair value adjustments arising from the business combination date.
Write the Eliminating Entries for Periodic Inventory System.
Step by step
Solved in 2 steps
