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 workpapers to eliminate the effects of the intercompany sales for 2020.

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 workpapers to eliminate the effects of the intercompany sales for 2020.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 2RE: Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of...

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Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.
Baelfire Corporation owns an 80% interest in Sheriff Corporation acquired several years ago. Sheriff regularly sells merchandise to its parent at 125% of Sheriff's cost. Gross profit data of Baelfire and Sheriff for the year 2020 are as follows: Baelfire P650,000 520,000 P 130,000 Sheriff P520,000 416,000 P104,000 Sales Cost of goods sold . Gross profit . During 2020, Baelfire purchases inventory items from Sheriff at a transfer price of P260,000. Baelfire's December 31, 2019 and 2020 inventories included goods acquired from Sheriff of P65,000 and P81,250, respectively. The Unrealized profits in the year-end 2019 and 2020 inventories were: 65,000 and 81,250 respectively O 30,400 and 13,000 respectively 13,000 and 16,250 respectively 520,000 and 65,000 respectively
PP Co. regularly sells merchandise to its 80%-owned subsidiary, SS Co. In 2021, PP sold merchandise to SS that cost P64,000 for P80,000. Half of the merchandise remained in the inventory of SS as of December 31, 2021. During 2022, PP sold merchandise that cost P100,000 to SS for P125,000. 60% of the 2022 inter company sale was resold to the customers of SS. Selected profit or loss items for 2022 are provided below: PP SS Sales P600,000 P300,000 Cost of sales 480,000 250,000 Operating expenses 40,000 20,000 How much is the consolidated cost of sales? A. 607,000 B. 603,000 C. 732,000 D. 853,000 How much is the consolidated net income attributable to the parent for 2022? A 102,000 B. None of the choices C. 108,000 D. 102,400 How much is the consolidated sales for 2022? A. 855,000 B. 800,000 C. 900,000 D. 775.000 How much is the consolidated net income…
Jellicent Corporation is an 80% owned subsidiary of Frilish Corporation. During 2018, Jellicent sold merchandise that cost P120,000 to Frilish for P160,000. Frilish’s ending inventory at December 31, 2018 contained unrealized profit of P8,000 from the intercompany sales.During 2019, Jellicent sold merchandise that cost P140,000 to Frilish for P190,000. One-half of this remained unsold by Frilish at December 31, 2019. For 2019, Frilish’s separate income (does not include investment income) was P250,000 and Jellicent 's reported net income was P190,000. The consolidated net income attributable to parent for 2019 will be: *a. P356,000b. P388,400c. P342,500d. P377,500
Volley corporation owns an 80% interest in Basket corporation acquired several years ago. Basket regularly sells merchandise to experience at 125% of studies cost. Gross profit data for Volley and Basket for the year 2019 are as follows: Volley Basket Sales 1,000,000 800,000 Cost of Goods Sold 800,000 640,000 Gross Profit 160,000 160,000 During 2019 Volley purchased inventory items from Basket and a transfer price of 400,000. Volley December 31 2018 and 2019 inventory include goods acquired from Basket of 100,000 and 125,000 respectively. The consolidated cost of goods sold of Volley and subsidiary for 2019 was: a. 1,024,000 b. 1,045,000 c. 1,052,800 d. 1,056,000
Volley corporation owns an 80% interest in Basket corporation acquired several years ago. Basket regularly sells merchandise to experience at 125% of studies cost. Gross profit data for Volley and Basket for the year 2019 are as follows: Volley Basket Sales 1,000,000 800,000 Cost of Goods Sold 800,000 640,000 Gross Profit 160,000 160,000 During 2019 Volley purchased inventory items from Basket and a transfer price of 400,000. Volley December 31 2018 and 2019 inventory include goods acquired from Basket of 100,000 and 125,000 respectively. The consolidated sales of Volley corporation and subsidiary for 2019 were: a. 1,800,000 b.1,425,000 c.1,400,000 d.1,240,000
During 2020, a parent 'sold' inventory priced at $10500 to its subsidiary. The parent's cost of these goods was $5000. During the year, the subsidiary sold 70% of that inventory to outside customers for $20000. What amount should be reported in the 2020 consolidated income statement for SALES? BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000. Your Answer:
Volley corporation owns an 80% interest in Basket corporation acquired several years ago. Basket regularly sells merchandise to experience at 125% of studies cost. Gross profit data for Volley and Basket for the year 2019 are shown in the image. During 2019 Volley purchased inventory items from Basket and a transfer price of 400,000. Volley December 31 2018 and 2019 inventory include goods acquired from Basket of 100,000 and 125,000 respectively. The consolidated sales of Volley corporation and subsidiary for 2019 were: a. 1,800,000 b.1,425,000 c.1,400,000 d.1,240,000 Using the same information, the unrealized profits in the year end 2018 and 2019 inventories were: a. 100K and 125K respectively. b. 800K and 100K respectively. c. 20K and 25K respectively. d. 16K and 20K respectively Using the same information in no.5, the consolidated cost of goods sold of Volley and subsidiary for 2019 was: a. 1,024,000 b. 1,045,000 c. 1,052,800 d. 1,056,000
On January 3, 2019 Abracada acquired 90% of Deli Co. at book value. The following information is available: 2020 2019 Ending inventory 60,000 40,000 Intercompany Cost of Goods sold 120,000 120,000 Downstream sale 240,000 200,000 Net income - Deli Co. 450,000 400,000 Net income - Abracada Co. 1,100,000 1,000,000 What is the profit attributable to equity holders of parent or Controlling Interest in Net Income for 2020?
Pal Corporation acquired a 60% interest in Sun Corporation on January 1, 2020, at a cost equal to book value and fair value. Sun reports net income of $880,000 for 2020. Sun regularly sells merchandise to Pal at 120% of Sun’s cost. The intercompany sales information for 2020 is as follows: Selling price for intercompany transaction $672,000 Value of inventory unsold by Pal 132,000 Instructions: Determined unrealized profit in Sun as at 31 December 2020 Compute Pal income from Sun as at 31 December 2020
X Inc. owns 70% of Y Inc. During 2020, X Inc. sold inventory to Y for $10,000. Half of this inventory remained in Y's warehouse at year end. Y Inc. sold inventory to X Inc. for $5,000. 40% of this intentory remained in X's warehouse at year end. The gross profit percentage on sales is 20% for both companies. Unless otherwise stated, assume X Inc. uses the cost method to account for its investment in Y Inc. What effect (if any) would the unrealized profits on the above intercompany sales have on the non-controlling interest account on the consolidated balance sheet? There would be a decrease to the non-controlling interest account for the amount of $120 There would be a decrease to the non-controlling interest account for the amount of $80 There would be a decrease to the non-controlling interest account for the amount of $400 There would be no impact on the non-controlling interest account.
Pearl company acquired 80% of Coral company on January 1, 2020. On December 2021 Pearl reported sales of $1,700,000, cost of goods sold of $800,000 and operating expenses of 250,000. Coral reported sales of $900,000, cost of goods sold of $400,000 and operating expenses $120,000. Coral sold inventory costing $150,000 to Pearl for $200,000. 40% of the goods transferred remain in ending inventory at transfer price. Required: 1. Calculate consolidated cost of goods sold. 2. Prepare consolidation entry 'G'. 3. Calculate net income attributable to noncontrolling interest. 4. Explain how net income attributable to noncontrolling interest would differ assuming the transfer is downstream. NO CALCULATION IS REQUIRED.