question D only Problem 2Pawn Company holds 70% of Sell Company stock.Pawn has sold inventory to Sell Company as follows:Year2019202020212022SalesPrice toCost toPawnSell$203,000$355,000$208,000 $312,000$360,000 $450,000$150,000 $250,000Percentof SoldInventoryHeld atYear end30%40%25%20%The following balances were included in the individualfinancial statements of each company for the year ended12/31/2022:SellSalesPawn$6,500,000 3,700,000$ 3,470,000 2,200,000$ 590,000 350,000Cost of goods soldMerch. inventorya. What will be reported as consolidated sales in the year 2022?b. What will be reported as consolidated inventory at 12/31/2022?c. What will be reported as consolidated cost of goods sold for 2022?d. Were the intra-entity sales of inventory items upstream ordownstream?

Inventory refers to the products or items an entity is required to trade so that it can generate…

Problem 2 Pawn Company holds 70% of Sell Company stock. Pawn has sold inventory to Sell Company as follows: Percent of Sold Inventory Held at Year end 30% 40% 25% 20% Year 2019 2020 2021 2022 Sales Cost to Price to Pawn Sell $203,000 $355,000 $208,000 $312,000 $360,000 $450,000 $150,000 $250,000 The following balances were included in the individual financial statements of each company for the year ended 12/31/2022: Pawn Sell 3,700,000 Sales $6,500,000 Cost of goods sold Merch. inventory $ 3,470,000 2,200,000 $ 590,000 350,000 a. What will be reported as consolidated sales in the year 2022? b. What will be reported as consolidated inventory at 12/31/2022? c. What will be reported as consolidated cost of goods sold for 2022? d. Were the intra-entity sales of inventory items upstream or downstream?

Problem 2 Pawn Company holds 70% of Sell Company stock. Pawn has sold inventory to Sell Company as follows: Percent of Sold Inventory Held at Year end 30% 40% 25% 20% Year 2019 2020 2021 2022 Sales Cost to Price to Pawn Sell $203,000 $355,000 $208,000 $312,000 $360,000 $450,000 $150,000 $250,000 The following balances were included in the individual financial statements of each company for the year ended 12/31/2022: Pawn Sell 3,700,000 Sales $6,500,000 Cost of goods sold Merch. inventory $ 3,470,000 2,200,000 $ 590,000 350,000 a. What will be reported as consolidated sales in the year 2022? b. What will be reported as consolidated inventory at 12/31/2022? c. What will be reported as consolidated cost of goods sold for 2022? d. Were the intra-entity sales of inventory items upstream or downstream?

Financial & Managerial Accounting

13th Edition

ISBN:9781285866307

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter13MJ: Mornin' Joe

Section: Chapter Questions

Problem 3IFRS

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