69. A parent owns 80% of its subsidiary, and sells merchandise to its subsidiary at a 25% markup on cost. The subsidiary's ending inventory includes $750,000 purchased from the parent. The subsidiary's beginning inventory includes $825,000 purchased from the parent. What is the effect of the above on the parent's equity in net income of the subsidiary for the current year? a. P15,000 increase b. P12,000 increase 70 Yukor Co 27597 C. P15,000 decrease d. no effect ont of the voting common stock of Ontario Corn on January 1

69. A parent owns 80% of its subsidiary, and sells merchandise to its subsidiary at a 25% markup on cost. The subsidiary's ending inventory includes $750,000 purchased from the parent. The subsidiary's beginning inventory includes $825,000 purchased from the parent. What is the effect of the above on the parent's equity in net income of the subsidiary for the current year? a. P15,000 increase b. P12,000 increase 70 Yukor Co 27597 C. P15,000 decrease d. no effect ont of the voting common stock of Ontario Corn on January 1

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Parent Subsidiary Sales $1,500,000 $500,000Cost of Goods Sold 750,000 250,000Operating Expenses 550,000 150,000Net Income $200,000 $100,000 Inventory 12/31/X1 $120,000 $60,000 - Parent owns 80% of Subsidiary’s common stocks.- Subsidiary sold $200,000 of goods to Parent.- Of the $200,000 goods, $60,000 were not sold on 12/31/X1.- Parent and Subsidiary have a uniform margin (gross profit rate) on all of its sales. 1/ What amount will be reported as consolidated sales? a. 2,000,000 b. 1,900,000 c. 1,940,000 d. 1,800,000 2/ What amount will be reported as a consolidated cost of goods sold a. 800,000 b. 830,000 c. 1,000,000 d. 770,000
If the unrealized profit of sales from parent to a subsidiary is GHC2,000 and NCI in the subsidiary has 30% share interest, what amount of the unrealized profit is chargeable to the group's retained earnings? DA GHC2.000 B. GHC1400 OC GHC600 D. GHCO
Compute for Consolidated Total Equity *Consolidated Inventories *
What is the journal entry for Subsidiary if it sold an inventory bought at $300 to its Parent company at a price of $200?
Help for parts D, E,F
4
Pizza Factory Company owns 100% controlling interest in its long held subsidiary; The Sugar Company and they use the Equity Method. Pizza Factor sells inventory to Sugar Company for a 25% Gross Profit. During 2019 and 2020, intercompany sales amounted to: Intercompany Sales: 2019 840,000 2020 930,000 At the end of 2019, Sugar Company had one-fifth of the goods purchased that year from Pizza Factory in its ending inventory. At the end of 2020, Sugar Company's 2020 ending inventory contained one-fourth of that year’s purchases from Pizza Factory. There were no intercompany sales prior to 2019. Prepare in general journal form all entries necessary on the consolidated statements…
Consolidated Retained Earnings *Non-Controlling Interest
4. Jackson company owns 80% of Canton corporation's common stock during October canceled merchandise to Jackson for $250,000 at December 31, 40% of the merchandise remains in Jackson's inventory gross profit percentage is 120% for Jackson and 30% for Canon the amount of intra- entity gross profit in inventory at December 31 That should be eliminated in the consolidation process is a. Zero b. $24,000, c. $75,000 d. $30,000