Advanced Accounting 14th Edition
14th Edition
ISBN: 9781260726442
Author: By Joe Ben Hoyle And Thomas Schaefer And Timothy Doupnik
Publisher: Mc Grawhill Education
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Question
Chapter 5, Problem 4P
To determine
Introduction: To account for related companies as a single entity all the effects of intercompany sales and purchases are eliminated. Total recorded inter-entity sales are deleted regardless of whether it is from parent to subsidiary or from subsidiary to parent.
The total amount of assets reported in the consolidated balances sheet on December 31, 2020.
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Students have asked these similar questions
Alpha Company owns 80 percent of the voting stock of Beta Company. Alpha and Beta reported the following account
information from their year-end separate financial records:
Alpha Beta
$95,000 $88,000
800,000 300,000
Cost of Goods Sold 600,000 180,000
Inventory
Sales Revenue
During the current year, Alpha sold inventory to Beta for $100,000. As of year end, Beta had resold only 60 percent of
these intra-entity purchases. Alpha sells inventory to Beta at the same markup it uses for all of its customers.
What is the total for consolidated cost of goods sold?
Alpha Company owns 80 percent of the voting stock of Beta Company. Alpha and Beta reported the following account information from their year-end separate financial records:
Alpha Beta
Inventory $95,000 $88,000
Sales Revenue 800,000 300,000
Cost of Goods Sold 600,000 180,000
During the current year, Alpha sold inventory to Beta for $100,000. As of year end, Beta had resold only 60 percent of these intra-entity purchases. Alpha sells inventory to Beta at the same markup it uses for all of its customers.
What is the total for consolidated sales revenue?
Luffman Inc. owns 30% of Bruce Inc. and appropriately applies the equity method. During the current year, Bruce bought inventory
costing $52,000 and then sold it to Luffman for $80,000. At year-end, all of the merchandise had been sold by Luffman to other
customers. What amount of gross profit on intra-entity sales must be deferred by Luffman?
Chapter 5 Solutions
Advanced Accounting 14th Edition
Ch. 5 - Prob. 1QCh. 5 - Prob. 2QCh. 5 - Prob. 3QCh. 5 - Prob. 4QCh. 5 - James, Inc., sells inventory to Matthews Company,...Ch. 5 - Prob. 6QCh. 5 - Prob. 7QCh. 5 - Prob. 8QCh. 5 - Prob. 9QCh. 5 - Prob. 10Q
Ch. 5 - Prob. 11QCh. 5 - Prob. 12QCh. 5 - Prob. 13QCh. 5 - Prob. 1PCh. 5 - Prob. 2PCh. 5 - Prob. 3PCh. 5 - Prob. 4PCh. 5 - Prob. 5PCh. 5 - Prob. 6PCh. 5 - Prob. 8PCh. 5 - Prob. 11PCh. 5 - What is the total of consolidated cost of goods...Ch. 5 - Prob. 13PCh. 5 - Prob. 14PCh. 5 - Prob. 15PCh. 5 - What is the consolidated total for inventory at...
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