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 P 150,000 P 85,000 P 231,000 Gross Profit 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 original cost of goods in Sign's inventory acquired from Poster Corp.? O 4.000 O 92,000 96,000 5,000

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 P 150,000 P 85,000 P 231,000 Gross Profit 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 original cost of goods in Sign's inventory acquired from Poster Corp.? O 4.000 O 92,000 96,000 5,000

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter14: Intercorporate Investments In Common Stock

Section: Chapter Questions

Problem 20E

See similar textbooks

Similar questions

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?
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.
21. 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 P420,000 P924,000 Cost of Goods Sold 450,000 335,000 693,000 Gross Profit P150,000 P85,000 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 original cost of goods in Sign’s inventory acquired from Poster Corp.?…
20. 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 P420,000 P924,000 Cost of Goods Sold 450,000 335,000 693,000 Gross Profit P150,000 P85,000 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 inventory?
Company Big owns 80% of Company Small. Their separate statements of profit or loss for the financial year ended on 31 December 2021 are as follows: Big (€) Small (€) Sales revenue 800,000 500,000 Cost of sales 560,000 300,000 Gross profit 240,000 200,000 During the year 2021 Co Big sold goods to Co small for €150,000. These goods had cost Co Big €120,000. What amounts are reported on the consolidated statement of profit or loss for the year ended 31 December 2021 for the group if all the goods were still in the inventory of Small Co at the year-end: Sales revenue ["1,180,000", "1,040,000", "1,300,000", "1,150,000"] Cost of sales ["740,000", "710,000", "860,000", "688,000"] Gross profit ["470,000", "440,000", "352,000", "410,000"]
The consolidated income statement of P Corp. and its 80% subsidiary follows: P. Corp and Subsidiary Consolidated Income Statement For the year ended December 31, 2013 Sales P402,000 Cost of Goods Sold 246,000 Gross Profit 156,000 Operating expenses 81,000 Consolidated net income 75,000 Non-controlling interest in net income 6,000 Share of P. Corp. in the consolidated net income P69,000 How much of the consolidated net income was the result of the operation of the subsidiary? A. P51,000 B. P24,000 C. P7,500 D. P30,000
Comparative income statements of Sub Corporation for the calendar years 2019, 2020, and 2021 are as follows (in thousands): 2019 2020 2021Sales $22,000 $18,500 $19,250Cost of sales 10,600 9,900 10,100Gross profit 11400 8600 9150Operating expenses 5,700 5,500 6,000Net income $ 5700 $ 3100 $ 3150ADDITIONAL INFORMATION1. Sub was an 80 percent-owned subsidiary of Pub Corporation throughout the 2019–2021 period. Pub’s separate income (excludes income from Sub) was $7,200,000, $6,600,000, and $7,500,000 in 2019, 2020, and 2021, respectively. Pub acquired its interest in Sub at its underlying book value, which was equal to fair value on July 1, 2017.2. Pub sold inventory items to Sub during 2019 at a gross profit to Pub of $720,000. Half the merchandise remained in Sub’s inventory at December 31, 2019. Total sales by Pub to Sub in 2019 were $1,800,000. The remaining merchandise was sold by Sub in 2020.3. Pub’s inventory at December 31, 2020, included items acquired from Sub on…
Comparative income statements of Sub Corporation for the calendar years 2019, 2020, and 2021 are as follows (in thousands): 2019 2020 2021Sales $22,000 $18,500 $19,250Cost of sales 10,600 9,900 10,100Gross profit 11400 8600 9150Operating expenses 5,700 5,500 6,000Net income $ 5700 $ 3100 $ 3150ADDITIONAL INFORMATION1. Sub was an 80 percent-owned subsidiary of Pub Corporation throughout the 2019–2021 period. Pub’s…
Comparative income statements of Sub Corporation for the calendar years 2019, 2020, and 2021 are as follows (in thousands): 2019 2020 2021Sales $22,000 $18,500 $19,250Cost of sales 10,600 9,900 10,100Gross profit 11400 8600 9150Operating expenses 5,700 5,500 6,000Net income $ 5700 $ 3100 $ 3150ADDITIONAL INFORMATION1. Sub was an 80 percent-owned subsidiary of Pub Corporation throughout the 2019–2021 period. Pub’s separate income (excludes income from Sub) was $7,200,000, $6,600,000, and $7,500,000 in 2019, 2020, and 2021, respectively. Pub acquired its interest in Sub at its underlying book value, which was equal to fair value on July 1, 2017.2. Pub sold inventory items to Sub during 2019 at a gross profit to Pub of $720,000. Half the merchandise remained in Sub’s inventory at December 31, 2019. Total sales by Pub to Sub in 2019 were $1,800,000. The remaining merchandise was sold by Sub in 2020.3. Pub’s inventory at December 31, 2020, included items acquired from Sub on which Sub made…
Comparative income statements of Sub Corporation for the calendar years 2019, 2020, and 2021 are as follows (in thousands): 2019 2020 2021 Sales $22,000 $18,500 $19,250 Cost of sales 10,600 9,900 10,100 Gross profit 11400 8600 9150 Operating expenses 5,700 5,500 6,000 Net income $ 5700 $ 3100 $ 3150 ADDITIONAL INFORMATION Sub was an 80 percent-owned subsidiary of Pub Corporation throughout the 2019–2021 period. Pub’s separate income (excludes income from Sub) was $7,200,000, $6,600,000, and $7,500,000 in 2019, 2020, and 2021, respectively. Pub acquired its interest in Sub at its underlying book value, which was equal to fair value on July 1, 2017. Pub sold inventory items to Sub during…
For the year ended December 31, the following results were given: Dividend Paid Net Income Parent Company P15,000 P30,200Subsidiary Company 4,000 9,400 Using the proportionate basis or partial goodwill method, compute the consolidated retained earnings on December 31.A. P 64,760 C. P 69,400B. P65,090 D. P 69,800 Note: Just use the information provided to arrive at the answer.
The financial statements of Harry Ltd and its subsidiary Olivia Ltd have been extracted from their financial records at 30 June 2023 and are presented below. Harry Ltd $ Olivia Ltd $ Sales 839 250 725 000 Cost of goods sold (580 000) (297 500) Gross profit 259 250 427 500 Dividends received 116 250 - Management fee revenue 33 125 Gain on sale of plant 43 750 Less Expenses Administration (38 500) (48 375) Depreciation (30 625) (71 000) Management fee - (33 125) Other expenses (126 375) (96 250) Profit before tax 256 875 178 750 Tax expense (76 875) (52 750) Profit after tax 180 000 126 000 Retained earnings 1 July 2022 399 250 299 000 579 250 425 000 Dividends paid (171 750) (116 250) Retained earnings 30 June 2023 407 500 308 750 Statement of financial position Harry Ltd $ Olivia Ltd $ Shareholders’ equity Retained earnings 407 500 308 750 Share capital 437 500 250 000 Current liabilities Accounts payable 57 875 Tax payable 100 000 31 250 Non-current liabilities Loans 236 000 145 000…