Carlos Bakery owns 60 percent of the stocks of Zeus Products acquired several years ago at book values. On January 1, 2021, inventory reported by Carlos included 20,000 bags of flour purchased from Zeus at P90 per bag. By December 31, 2021, all of these had been baked into products and sold to customers by Carlos Bakery. There were no other transactions between them during 2021. Both Carlos and Zeus price their sales at cost plus 50% mark up for profit. Carlos reported net income from its own operations of P3,000,000 and Zeus reported net income of P2,500,000 in 2021. Compute the consolidated net income for 2021
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- Nicolo manufacturing produced 10,000 Kitchen clocks in 2021 for P50 each and sold them to San Mig Corp at P150 each. San Mig resoled 8,000 units at P220 each in 2021 and held the remaining units in inventory on December 31, 2021. San Mig owns 70% of the stocks of Nicolo Manufacturing. How much gross profit must be included in the consolidated income statement for 2021?Virginia Corp. owned all of the voting common stock of Stateside Co. Both companies use the perpetual inventory method, and Virginia decided to use the partial equity method to account for this investment. During 2020, Virginia made cash sales of $400,000 to Stateside. The gross profit rate was 30% of the selling price. By the end of 2020, Stateside had sold 75% of the goods to outside parties for $420,000 cash. Prepare journal entries for Virginia and Stateside to record the sales/purchases during 2020.Westar Co. formed a subsidiary, Star Co., in 2019 to retail a special line of Westar's products. All Star's purchases are made from Westar Co. at 30% above Wastar's cost. During 2019, Westar sold merchandise that cost $45,000 to Star for $53,000, and Star sold all the merchandise to its customers for $59,500. Journalize the merchandise entries for both Westar and Star
- On December 31, 2018 Berry Corporation sold some of its product to Flynn Company, accepting a 3%, four-year promissory note having a maturity value of $800,000 (interest payable annually on December 31). Berry Corporation pays 5% for its borrowed funds. Flynn Company, however, pays 8% for its borrowed funds. The product sold is carried on the books of Berry at a manufactured cost of $395,000. Assume Berry uses a perpetual inventory system. Instructions (a) Prepare the journal entries to record the transaction on the books of Berry Corporation at December 31, 2018. (Assume that the effective interest method is used. Use the interest tables below and round to the nearest dollar.) (b) Make all appropriate entries for 2019 on the books of Berry Corporation. (c) Make all appropriate entries for 2020 on the books of Berry Corporation.ABC owns 80% interest of DEF Company and at December 31, 2021, ABC's investment in DEF under the cost method was equal to 80% of DEF's shareholders' equity. During 2022, DEF sells merchandise to ABC for P130,000 at a gross profit to DEF of P26,000. At December 31, 2022, half of this merchandise is included in ABC's inventory. Separate incomes fo ABC and DEF amounted to P162,500 and P91,000 respectively. In the consolidated income statement for 2022, the non-controlling interest in net income of DEF is:Daniels Company engaged in the following transactions during 2020: a. Purchased $25,000 of merchandise from XYZ Supplies on January 26. Amount due in full on February 28. b. Paid for 40% of the purchased merchandise (Transaction a) on February 26. c. On February 28, negotiate a payment extension with XYZ for the remainder of the balance from the January 26 purchase by signing a 1-year, 8% note. d. Borrowed $500,000 on an 8-month, 9% interest-bearing note on July 31. e. Purchased $140,000 of merchandise on August 2. Amount due in full on September 30. f. Paid for the purchased merchandise (Transaction e) on September 28. g. Received from Martel Inc. on October 4, a $60,000 deposit against a total selling price of $600,000 for services to be performed for Martel. h. Paid quarterly installments of Social Security, Medicare, and individual income tax withholdings, as shown below, on October 10. The Social Security and Medicare were previously recorded as expenses during…
- The company completed the following transactions during 2020. • Jan 10 sold inventory to Natty Paul, $11,000, on account • May 15 wrote off as uncollectible the accounts of Terry Carter, $2,500 and Maggie Cube $400 • August 04 received 70% of the amount owed by Natty Paul and wrote off the remainder as uncollectible • October 26 received 30% of the funds owed from Maggie Cube as part payment of her account which had been written off earlier as uncollectible. • December 31, The Aging schedule showed an estimated $116,500 as uncollectible Requirements: 1. Prepare journal entries for each transaction (No narrations required) 2. Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based on the information presented and balance off each account. 3. Prepare the balance sheet extract as at Dec 31, 2020, to show the net realizable value for the Accounts Receivable. 4. Assume credit sales for 2019 were $312,000 and that on December 31, 10% of credit sales are estimated…The company completed the following transactions during 2020. • Jan 10 sold inventory to Natty Paul, $11,000, on account • May 15 wrote off as uncollectible the accounts of Terry Carter, $2,500 and Maggie Cube $400 • August 04 received 70% of the amount owed by Natty Paul and wrote off the remainder as uncollectible • October 26 received 30% of the funds owed from Maggie Cube as part payment of her account which had been written off earlier as uncollectible. • December 31, The Aging schedule showed an estimated $116,500 as uncollectible Requirements: 1. Prepare journal entries for each transaction (No narrations required) 2. Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based on the information presented and balance off each account. 3. Prepare the balance sheet extract as at Dec 31, 2020, to show the net realizable value for the Accounts Receivable. 4. Assume credit sales for 2019 were $312,000 and that on December 31, 10% of credit…On October 9, 2020, Steven Company purchased $4,500 of product on account from Bryant Company on with credit terms of 2/15 n/30. The product cost Bryant Company $3,750. The freight terms were F.O.B. shipping point, the cost was $125 and the freight was paid in cash to ABC Trucking Company on Oct 12, 2020. On October 15, Bryant Company purchased $2,000 of product from Mitchell Company, with credit terms of 3/10, n/60. The product cost Mitchell Company $1,200. The freight terms were F.O.B. destination. the cost was $75 and the freight was paid in cash to ABC Trucking Company on October 16. On October 17, Steven Company paid for the purchase made on October 9. On October 30, Bryant Company paid for the purchase made on October 15. Prepare the journal entries for Steven, Bryant, and Mitchell Companies. Calculate the gross margin on Bryant’s sale to Steven Company and on Mitchell’s sale to Bryant Company.
- Riverbed is a cologne retailer. During 2020, Riverbed had the following non-monetary transactions. Scenario 1: Riverbed exchanged 4,500 of its common shares (FMV of $9 each) for equipment with a FMV of $45,000. Scenario 2: Riverbed traded machinery with a cost of $14,700 and accumulated depreciation of $5,880 for an inventory management equipment owned by Francis Inc. which is expected to help increase the speed with which Riverbed fills its orders. An additional $3,200 was paid by Riverbed in the exchange. The inventory management equipment has a cost of $18,600 and accumulated depreciation of $11,160 on Francis’ accounting records. Fair values for the machinery and the inventory management equipment are $9,820 and $13,020 respectively. For each of the above independent scenarios, prepare the journal entry necessary to record the transaction, assuming that Riverbed follows IFRS Hint: Scenario 1: 2 entries Scenario 2: 5 entriesOn June 30, 2021, Casio Sony Company sold a property carried in inventory at a cost of P1,894,200 for P2,800,000. A 20% down payment was made and the balance payable in 8 equal installments of P280,000, payable quarterly starting September 30 and December 31, 2021. The market rate of interest is 12%.Required:How much is the total realized gross profit in 2021?Inic CHAS, Inc. is engaged in the sale of parts for electric gate motors for residential and commercial garages and driveways. CHAS closes its books on December 31 of each year. The 10k report and the 2021 annual report were published on March 25, 2022. On December 15, 2021, CHAS purchased inventory on credit for $850,000 with terms 3/10, n/30. The company uses the gross method to account for its accounts payable. On December 23, 2021, 60% of the balance due was paid in cash, and the rest was paid in January 2022. The balance paid in January 2022 was made with working capital from the company itself. Determine the balance of accounts payable that the company should have reported as part of its current debts in the 2021 Annual Report (10K). to. $510,000 b. $340,000 с. $355,300 d. $0 acBook Air