3. 4. 5. Assume Weisman uses the equity method to account for its investment in Martindale. What is the balance in the pre-consolidation Income (loss) from subsidiary account for 2021? $136,000 $140,800 a. b. C. d. Assume Weisman uses the equity method to account for its investment in Martindale. What is the balance in pre-consolidation Income (loss) from subsidiary for 2022? a. b. $141,600 $142,800 C. d. $235,000 $264,600 $265,400 $268,600 What would be the net debit or credit to cost of goods sold on the 2021 consolidation worksheet?
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- The financial statements for Wiley Ltd are presented below: Statement of profit or loss and other comprehensive income for Wiley Ltd for the year ending 30 June 2019 $ $ Sales (credit) 250 000 Cost of sales – Inventory—01 July 2018 (25 000) – Purchases (152 500) – Inventory—30 June 2019 27 500 (150 000) Gross profit 100 000 Selling and administrative expenses (20 000) Depreciation (40 000) Profit before tax 40 000 Income tax expense (20 per cent) (10 000) Profit after tax 30 000 Other comprehensive income – Total comprehensive income 30 000 Statement of financial position for Wiley Ltd as of 30 June 2019 ($) Cash 34000 Accounts receivable 46000 Inventory (cost) 27500 Plant and equipment 125000 less Accumulated depreciation (30000) Land 50000 Total assets 252500 Share capital 150000…2) At December 31, 2021, The Comparative income statements of Polo Corporation and Solo Corporation show the following (in thousands): Sales Income from Solo Cost of goods sold Operating expenses Polo $3,200 384 1,800 800 Solo $1,300 400 400 Additional information 1. Polo Corporation acquired 80 percent of Solo for $1,600,000 on January 1, 2019, when Solo's Stockholders' equity at book value was $1,400,000. 2. The excess of the cost Polo's investment in Solo over book value acquired was allocated $60,000 to undervalued inventories that were sold in 2019, $80,000 to undervalued equipment with a four-year remaining useful life, and the remainder to goodwill. Required: Prepare a consolidated income statement for Polo Corporation and Subsidiary for the year ended December 31, 2021.Below are the Statements of Comprehensive Income of Riego and Mercadejas Companies for 2020. Riego Company's Statement of Comprehensive Income was prepared before it reported its share of Mercadejas Company's income. Riego Company uses the equity method. Mercadejas Co. Riego Co. 800,000 320,000 480,000 380,000 100,000 Sales Cost of sales Gross profit Operating Expenses Net Income Inventories, 1/1/20: Purchased from outsiders Purchased intercompany Inventories, 12/31/20: Purchased from outsiders Purchased intercompany 200,000 90,000 110,000 60,000 50,000 15,000 20,000 10,000 25,000 5,000 5,000 The gross profit rate, as a percentage of sales, has been stable for several years and 60% of Mercadejas Company's sales are to Riego Company. 75% of Mercadejas Company's was acquired by Riego Company some time ago at book value. Mercadejas Company's equity at December 31, 2020 consisted of P20,000 of capital stock and P60,000 of retained earnings. REQUIRED: Compute the amount of the following in…
- The data shown below were obtained from the financial records of the BST Corporation for the year ended December 31, 2020. Sound Break Corporation Income and Retained Earnings Statement For the year Ended December 31, 2020 Net Sales P1,000,000 Cost of Goods Sold: Inventory, Dec. 31, 2019 P250,000 Purchases 720,000 Total Goods Available P970,000 Inventory 220,000 750,000 Gross Margin on Sales P 250,000 Selling and Administrative (including Depreciation of P20,000)…The following information was extracted from the financial records of Mxo Limited at 28 February 2021, the end of the financial year. 2021 2020 R R Inventory 75 300 22 400 Other financial assets 130 000 125 000 Other financial liabilities 159 000 180 000 Trade receivables 57 300 47 400 Trade payables 32 900 28 500 Additional information: 1. The gross profit percentage is 38% on sales. 2. Purchases for the year amounted to R295 000 and 49% thereof were on credit. 3. Ratios reported in year ended 28 February 2020: Trade receivables collection period – 66.9 days Trade payables payment period – 64.9 days Inventory turnover rate – 6 times 4. Only 27% of the total sales were cash sales.Arriba and its 80 percent-owned subsidiary (Abajo) reported the following figures for the year ending December 31, 2021 (credit balances indicated by parentheses). Abajo paid dividends of $34,000 during this period. Abajo $(340,000) 158,800 68,000 Arriba $(680,000) 340,000 197,200 (27,200) Sales Cost of goods sold Operating expenses Dividend income Net income $(170,000) $(113,200) In 2020, intra-entity gross profits of $34,000 on upstream transfers of $102,000 were deferred into 2021. In 2021 intra-entity gross profits of $45,200 on upstream transfers of $124,400 were deferred into 2022. a. What amounts appear for each line in a consolidated income statement for the year ending December 31, 2021? b. What income tax expense should appear on the consolidated income statement if each company files a separate return? Assume that the tax rate is 21 percent.
- The data shown below were obtained from the financial records of the BST Corporation for the year ended December 31, 2020. Sound Break Corporation Income and Retained Earnings Statement For the year Ended December 31, 2020 Net Sales P1,000,000 Cost of Goods Sold: Inventory, Dec. 31, 2019 P250,000 Purchases 720,000 Total Goods Available P970,000 Inventory 220,000 750,000 Gross Margin on Sales Selling and Administrative (including P 250,000 Depreciation of P20,000) 125,000 Net Income before Tax P 125,000 Provision for Income Tax 35,000 Net Income for the Year P 90,000 Retained Earnings, beginning 130,000 Total P 220,000 Dividends Paid 30,000 Retained Earnings, December 31, 2020 P 190,000 Sound Break Corporation BALANCE SHEET December 31, 2019 and 2020 ASSETS 2019 2020 Current Assets: Cash P 75,000 P 85,000 Marketable Securities 25,000 25,000 Trade Receivables, net 185,000 245,000 Inventory, at cost 250,000 220,000 Prepaid Expenses 15,000 10,000 Total Current Assets P550,000 P585,000…Statement of profit or loss and other comprehensive income for Wiley Ltd for the year ending 30 June 2019 $ $ Sales (credit) 250 000 Cost of sales – Inventory—01 July 2018 (25 000) – Purchases (152 500) – Inventory—30 June 2019 27 500 (150 000) Gross profit 100 000 Selling and administrative expenses (20 000) Depreciation (40 000) Profit before tax 40 000 Income tax expense (20 per cent) (10 000) Profit after tax 30 000 Other comprehensive income – Total comprehensive income 30 000 Statement of financial position for Wiley Ltd as of 30 June 2019 ($) Cash 34000 Accounts receivable 46000 Inventory (cost) 27500 Plant and equipment 125000 less Accumulated depreciation (30000) Land 50000 Total assets 252500 Share capital 150000 Retained earnings 30 000 Current liabilities Accounts payable Dividends payable 12 500 10 000 Non-current liabilities Long-term bonds 50 000 Total shareholders’ equity and liabilities 252500 Required: Calculate the operating cycle for year 2019 using…Pinky Company has 80% holdings over Silk Company. During 2018, Pinky Company sold merchandise to Silk Company for P120,000 and in turn, purchased P90,000 from Silk Company. Both sales were made on account. Intercompany sales of merchandise during 2018 were made at the following gross profit rates: Downstream intercompany sale Upstream intercompany sale 25% based on sales 20% based on cost As of December 31, 2018, 30% of all intercompany sales remain in ending inventory of the buying affiliate. The beginning inventory of Pinky includes P2,500 worth of merchandise acquired from Silk on which Silk reported a profit of P1,000 while the beginning inventory of Silk also includes P3,000 of merchandise acquired from Pinky at 35% mark- up. Using cost method, the following results of operations for 2018 are as follows: Pinky Company 198,000 60,000 Silk Company 75,000 10,000 Net income Dividends declared and paid 33. How much of the consolidated net income for 2018 is attributable to the…
- The following information is available for Cane Mill River Company for the year 2024: Cost of goods sold $60,000 Dividend revenue 2,500 Income tax expense 6,000 Operating expenses 23,000 Sales revenue 100,000 Cane Mill River's multi-step income statement will report gross profit of Select one: $40,000. $42,500. $0 because this is not a subtotal reported on a multi-step income statement. $13,500.The following are summarized financial statements of Anna Limited for the year ended 31st December 2022.Comparable figures for the previous year are also shown Income statement for the year ended 31st December 2022 2021 Shs 000 Shs 000 Sales 57,600 36,000 Less cost of goods (35,400) (21,000) GROSS PROFIT 22,200 15,000 Trading expenses (9,900) (8,100) Net profit before interest and tax 1 2,300 6,900 Less debenture interest (450) (450) Net profit before tax 11,850 6,450 Less corporate tax (5,760)…Gee Hee Traders started operating in 2021. For the year ended 2021, the sales, purchases, and closing inventory are P500,000, P200,000, and P10,000 respectively. What is the gross profit for the entity? Your answer