What amount of cost of goods sold will be reported in the 20x2 consolidated income statement?
Q: Corn Corporation purchased inventory from Beef Corporation for P 120,000 on September 20, 2012, and…
A: Here are the cases to be recorded in the consolidated financial statements.
Q: Shark Company purchased inventory from Dolphin Corporation for P120,000 on October 4, 2020, and…
A: Consolidated Sales is the total sales of the group less inter company sales Consolidated Sales =…
Q: Pop Corporation (PC) purchased 75% of the voting stock of Samantha Company (SC) on January 1, 20x1…
A: Consolidation financial statement:- Consolidation financial statements are defined as the financial…
Q: Pit Corporation owns 90% of Stop Company's outstanding common stock. On 07/01/20, Pit sold inventory…
A: Journal entry: A journal entry is used to record day-to-day transactions of the business by debiting…
Q: Jarvis owns 30% of McLintock. During the year to 31 December 20X4 McLintock sold $2 million of goods…
A: We have the following information: Jarvis owns 30% of McLintock During the year to 31 December…
Q: Pepper Corporation owns 75 percent of Salt Company's voting shares. During 20X8, Pepper produced…
A: Pepper corporation owns Salt company voting shares = 75% During 20X8, Pepper produced chairs = 50000…
Q: P Corporation acquired an 80% interest in S Corporation on January 1, 2014, when the book values of…
A: Unrealized loss on inventory sold to S = (Cost of merchandise sold - sales value of merchandise…
Q: On January 1, 20X1, Rivera Company (RC) and Caventa Company (CC) each acquired 40% of the ordinary…
A: 1. The amount of income RC should recognize from, TC P60000
Q: TT Company owns 100 percent of the capital stock of both BB Corporation and CC Corporation. BB…
A: Income statement is prepared by the business organizations so as to know how much amount of gross…
Q: Planner Corporation owns 70 percent of Schedule Company's voting shares. During 20X3, Planner…
A: Introduction: The cost of goods sold refers to the direct costs of delivering the product sold by a…
Q: Sanchez Company acquired inventories on June 1, 2021 from its 60% owned subsidiary, Black…
A: Eliminating the inter company transactions Inventory in stock of Sanchez= P 285000*30%= P 85500…
Q: Jubilee, Inc., owns 30 percent of JPW Company and applies the equity method. During the current…
A: Gross Profit Percentage = (Sales - Cost ) / Sales = ($133,000 - $93,100) / $133,000 = 30%
Q: What amount of consolidated net income will be assigned to the controlling interest for 20x2? A.…
A: Consolidated sales $140,000Cost of goods sold (60,000)Consolidated net income $ 80,000Income to…
Q: Lorn Corporation purchased inventory from Dresser Corporation for P120,000 on September 20, 20x2,…
A: Given: Purchased inventory : P120,000 Inventory reported: 20% of P120,000
Q: What amount of sales will be reported in the 20x2 consolidated income statement?
A: Consolidated revenue is the amount of sale of goods to the customers.
Q: On April 1, 2021, BBC Co. acquired a 30% stake in LTI Inc. for $ 100,000. This amount includes $…
A: Consolidated Income Statement: It can be referred to as an income statement prepared by the parent…
Q: Pilfer Company acquired 90 percent ownership of Scrooge Corporation in 20X7, at underlying book…
A: Non of the answer given above is correct Solution Cost of Goods Sold = 55000 * 60% = 33000 Sales =…
Q: Planner Corporation owns 70 percent of Schedule Company's voting shares. During 20X3, Planner…
A: Introduction: The cost of goods sold refers to the direct costs of providing a company's product…
Q: ansa Co. acquired 60% interest in Arya on January 1, 2025 for $46,800 when Arya's net assets had a…
A: Consolidated Financial statements : When a company invests in another company for more than…
Q: P Inc. owns a 60% interest in S Corp. During 2020 S sold inventory costing $160,000 to P for…
A:
Q: ABC owns 30% of MELY, which it purchased on 1 January 20X7 for $5,000,000. At that date, MELY had…
A: The corporation which has substantial amount of investment in other corporation is called parent…
Q: During 20x9, PP Corporation recorded sales of inventory costing P500,0000 to SS Company, its wholly…
A: Cost of sales is the amount at which the inventory was purchased by the entity. This amount is being…
Q: X Corporation acquired an 80% interest in Y Corporation on January 1, 2014, when the book values of…
A: Consolidation - It occurs when two or more company to combine to form new company, with expectation…
Q: Pepper Corporation owns 75 percent of Salt Company's voting shares. During 20X8, Pepper produced…
A: When one company acquired shares of another company then one company is parent company and other…
Q: Prepare the necessary entries to be made by both companies for 20X1 and 20X2. • Allocate the…
A:
Q: Pepper Corporation owns 75 percent of Salt Company's voting shares. During 20X8, Pepper produced…
A: Cost of goods sold exhibits direct cost incurred by company for producing goods and services.
Q: P Corporation acquired an 80% interest in S Corporation on January 1, 2014, when the book values of…
A: Following is the answer to the given question
Q: During 20x9, PP Corporation recorded sales of inventory costing P500,0000 to SS Company, its wholly…
A: The cost of goods sold includes the costs incurred by the business in respect of manufacturing and…
Q: How much is the share in the profit of associate in 20x1?
A: In this case the share in the profit of associate would be calculated as share in profit of…
Q: BB Inc., acquired a 60 percent interest in HH Company several years ago. During 20x7, HH sold…
A: The cost of goods sold as reported on the consolidated financial statements of the Borrower and its…
Q: Lorn Corporation purchased inventory from Dresser Corporation for P120,000 on September 20, 20x2,…
A: (A). P60,000 is the correct option.
Q: Part B Boromir Ltd owns 100% of Samwise Ltd, which in turn owns 100% of Saruman Ltd. During the…
A: Intercompany transaction required to be adjusted in consolidated financial statements. Not adjusting…
Q: Lorn Corporation purchased inventory from Dresser Corporation for P 120,000 on September 20, 20x2,…
A: A parent company is said to be the company that holds enough stock of another firm to have control…
Q: On March 1, 2010, JJ Corporation acquired for P 5,600,000 all of the assets of ZZ Company. On this…
A: The goodwill is calculated by deducting the fair value of the assets from the acquisition price.
Q: P Corporation acquired an 80% interest in S Corporation on January 1, 2014, when the book values of…
A: P income from S for 2014 = Separate income of S x Separate incomes
Q: P Co acquired 75% of the shares in S Co on 1 January 20X2 when the retained earnings of S Co stood…
A: A consolidated financial position statement is a key fiscal summary if there should be an occurrence…
Q: Padlock Corp. owns 90 percent of Safeco, Inc. During the year, Padlock sold 3,000 locking mechanisms…
A: Determine the amount of intra-entity profit that remains in S company inventory at year-end.
Q: P Corporation acquired an 80% interest in S Corporation on January 1, 2014, when the book values of…
A: Consolidation of accounts is a type of accounting used for accounting for group companies. In this,…
Q: Lorn Corporation purchased inventory from Dresser Corporation for P120,000 on September 20, 20x2,…
A: Consolidated revenue is the amount of sale of goods to the customers.
Q: Brandy Corporation owns 60 percent of Downer's voting shares. During 20X3, Brandy produced 50,000…
A: Working Notes: 1. Sales = Number of desks sold to Downer's * selling Price = 20,000 desks * $94 =…
Q: Angela, Inc., holds a 90 percent interest in Corby Company. During 2017, Corby sold inventory…
A: Consolidated financial statements: When an investor company holds above 50% in the outstanding…
Q: What inventory balance will be provided by the consolidated entity on December 31, 20x2? A. P15,…
A: Inventory reported by Lorn P 24,000 Unrealized profit (P45,000 x .20) (9,000)
Q: In 20X6, Vines Inc. (Vines) purchased 40% of the common shares of Bottles Inc. (Bottles). At the…
A: Equity Income refers to income earned by investors from stock dividends.
Q: Fried Inc. purchased 90% ownership of Chicken Corp. in 2020, at underlying book value. On that…
A:
Q: Lorn Corporation purchased inventory from Dresser Corporation for P 120,000 on September 20, 20x2,…
A: Following are the answers to the given questions
Q: Detner International purchases 80% of the outstanding stock of Hardy Company for $1,600,000 on…
A: Determination of value analysis…
Q: income of P160,000 and P180,000, respectively. During 20A, Vullaby sold merchandise to Braviary…
A: Minority interest is established when someone holds less than 50% share in the company. It is…
Q: Rommel, Inc. acquired a 60% interest in Mikee Company several years ago. During 2020, Mikee sold…
A: Answer - Calculation of consolidated cost of sales - Particulars Amount Cost of sales of…
Q: Lorn Corporation purchased inventory from Dresser Corporation for P120,000 on September 20, 20x2,…
A: Answer Option E is the Correct Answer i.e 69,200
Lorn Corporation purchased inventory from Dresser Corporation for P 120,000 on September 20, 20x2, and resold 80% of the purchased inventory to unaffiliated companies prior to December 31, 20x2, for P140,000. Dresser produced the inventory sold to Lorn for P75,000. Lorn owns 70% of Dresser’s voting common stock. The companies had no other transactions during 20x2.
What amount of cost of goods sold will be reported in the 20x2 consolidated income statement?
A. P60, 000
B. P75, 000
C. P96, 000
D. P120, 000
E. P171, 000
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Lorn Corporation purchased inventory from Dresser Corporation for P120,000 on September 20, 20x2, and resold 80% of the purchased inventory to unaffiliated companies prior to December 31, 20x2, for P140,000. Dresser produced the inventory sold to Lorn for P75,000. Lorn owns 70% of Dresser’s voting common stock. The companies had no other transactions during 20x2. What amount of cost of goods sold will be reported in the 20x2 consolidated income statement? A. P60,000 C. P96, 000B. P75, 000 D. P120, 000 E. P171, 000Pepper Corporation owns 75 percent of Salt Company's voting shares. During 20X8, Pepper produced 50,000 chairs at a cost of $79 each and sold 35,000 chairs to Salt for $90 each. Salt sold 18,000 of the chairs to unaffiliated companies for $117 each prior to December 31, 20X8, and sold the remainder in early 20X9 to unaffiliated companies for $130 each. Both companies use perpetual inventory systems. Based on the information given above, what amount of cost of goods sold must be eliminated from the consolidated income statement for 20X8? Multiple Choice A. $2,963,000 B. $1,620,000 C. $2,765,000 D. $1,422,000Pepper Corporation owns 75 percent of Salt Company's voting shares. During 20X8, Pepper produced 50,000 chairs at a cost of $79 each and sold 35,000 chairs to Salt for $90 each. Salt sold 18,000 of the chairs to unaffiliated companies for $117 each prior to December 31, 20X8, and sold the remainder in early 20X9 to unaffiliated companies for $130 each. Both companies use perpetual inventory systems. Based on the information given above, what amount of cost of goods sold must be eliminated from the consolidated income statement for 20X9? Multiple Choice A. $221,000 B.$1,422,000 C.$187,000 D.$2,963,000
- Pepper Corporation owns 75 percent of Salt Company's voting shares. During 20X8, Pepper produced 50,000 chairs at a cost of $79 each and sold 35,000 chairs to Salt for $90 each. Salt sold 18,000 of the chairs to unaffiliated companies for $117 each prior to December 31, 20X8, and sold the remainder in early 20X9 to unaffiliated companies for $130 each. Both companies use perpetual inventory systems. Based on the information given above, what amount of cost of goods sold must be reported in the consolidated income statement for 20X8? Multiple Choice A. $1,422,000B. $2,963,000 C. $1,620,000 D. $2,765,000Lorn Corporation purchased inventory from Dresser Corporation for P 120,000 on September 20, 20x2, and resold 80% of the purchased inventory to unaffiliated companies prior to December 31, 20x2, for P140,000. Dresser produced the inventory sold to Lorn for P75,000. Lorn owns 70% of Dresser’s voting common stock. The companies had no other transactions during 20x2 What amount of sales will be reported in the 20x2 consolidated income statement? A. P98, 000 B. P120, 000 C. P140, 000 D. P260, 000Lorn Corporation purchased inventory from Dresser Corporation for P120,000 on September 20, 20x2, and resold 80% of the purchased inventory to unaffiliated companies prior to December 31, 20x2, for P140,000. Dresser produced the inventory sold to Lorn for P75,000. Lorn owns 70% of Dresser’s voting common stock. The companies had no other transactions during 20x2. What amount of consolidated net income will be assigned to the controlling interest for 20x2? A. P20,000 D. P45, 000B. P30, 800 E. 69, 200C. P44, 000 F. 80, 000
- Lorn Corporation purchased inventory from Dresser Corporation for P 120,000 on September 20, 20x2, and resold 80% of the purchased inventory to unaffiliated companies prior to December 31, 20x2, for P140,000. Dresser produced the inventory sold to Lorn for P75,000. Lorn owns 70% of Dresser’s voting common stock. The companies had no other transactions during 20x2. What amount of consolidated net income will be assigned to the controlling interest for 20x2? A. P20, 000 B. P30, 800 C. P44, 000 D. P45, 000 E. 69, 200 F. 80, 000Baxter, Inc., owns 90 percent of Wisconsin, Inc., and 20 percent of Cleveland Company. Wisconsin, in turn, holds 60 percent of Cleveland’s outstanding stock. No excess amortization resulted from these acquisitions. During the current year, Cleveland sold a variety of inventory items to Wisconsin for $40,000 although the original cost was $30,000. Of this total, Wisconsin still held $12,000 in inventory (at transfer price) at year-end.During this same period, Wisconsin sold merchandise to Baxter for $100,000 although the original cost was only $70,000. At year-end, $40,000 of these goods (at the transfer price) was still on hand.The initial value method was used to record each of these investments. None of the companies holds any other investments.Using the following separate income statements, determine the figures that would appear on a consolidated income statement:Baxter, Inc., owns 90 percent of Wisconsin, Inc., and 20 percent of Cleveland Company. Wisconsin, in turn, holds 60 percent of Cleveland's outstanding stock. No excess amortization resulted from these acquisitions. During the current year, Cleveland sold a variety of inventory items to Wisconsin for $40,000 although the original cost was $30,000. Of this total, Wisconsin still held $12,000 in inventory (at transfer price) at year-end. During this same period, Wisconsin sold merchandise to Baxter for $100,000 although the original cost was only $70,000. At year-end, $40,000 of these goods (at the transfer price) was still on hand. The initial value method was used to record each of these investments. None of the companies holds any other investments. Using the following separate income statements, determine the figures that would appear on a consolidated income statement: Baxter Wisconsin Cleveland Sales $ (1,000,000 ) $ (450,000 ) $ (280,000 ) Cost of goods sold…
- Planner Corporation owns 60 percent of Schedule Company’s voting shares. During 20X3, Planner produced 29,000 computer desks at a cost of $96 each and sold 14,000 of them to Schedule for $108 each. Schedule sold 9,000 of the desks to unaffiliated companies for $134 each prior to December 31, 20X3, and sold the remainder in early 20X4 for $144 each. Both companies use perpetual inventory systems. Required: What amounts of cost of goods sold did Planner and Schedule record in 20X3? What amount of cost of goods sold must be reported in the consolidated income statement for 20X3? Prepare the worksheet consolidation entry or entries needed in preparing consolidated financial statements at December 31, 20X3, relating to the intercorporate sale of inventory.Ram Company bought all the shares of Lal Company on January 1, Year 1 for 2,000,000. During that year Ram sold Lal for 80,000. inventory that had cost him $40,000. At the end of the period, LAL still had not sold the inventory to outsiders, but still owed Ram the $50,000. For that year, Ram has a balance of 550,000 in cost of goods sold and Lal of 150,000. What should be the total cost of goods sold presented in the consolidated statement of income and expenses? 650,000 700,000 660,000 640,000Lorn Corporation purchased inventory from Dresser Corporation for P 120,000 on September 20, 20x2, and resold 80% of the purchased inventory to unaffiliated companies prior to December 31, 20x2, for P140,000. Dresser produced the inventory sold to Lorn for P75,000. Lorn owns 70% of Dresser’s voting common stock. The companies had no other transactions during 20x2. What inventory balance will be provided by the consolidated entity on December 31, 20x2? A. P15, 000 B. P16, 800 C. P24, 000 D. P39, 000