Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Chapter 5, Problem 4P
To determine
Introduction: To account for related companies as a single entity all the effects of intercompany sales and purchases are eliminated. Total recorded inter-entity sales are deleted regardless of whether it is from parent to subsidiary or from subsidiary to parent.
The total amount of assets reported in the consolidated balances sheet on December 31, 2020.
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Palm Company owns 100% of Soso Company. During year X1, Soso sold merchandise costing $50,000 to Palm for $80,000. As of 12/31/X1, 40% of the merchandise remained in Palm's inventory. Assuming that Soso reported a $100,000 net income an paid $20,000 of dividends in year X1, how much investment income should should Palm recognize in year X1?
Alpha Company owns 80 percent of the voting stock of Beta Company. Alpha and Beta reported the following account information from their year-end separate financial records:
Alpha Beta
Inventory $95,000 $88,000
Sales Revenue 800,000 300,000
Cost of Goods Sold 600,000 180,000
During the current year, Alpha sold inventory to Beta for $100,000. As of year end, Beta had resold only 60 percent of these intra-entity purchases. Alpha sells inventory to Beta at the same markup it uses for all of its customers.
What is the total for consolidated sales revenue?
Alpha Company owns 80 percent of the voting stock of Beta Company. Alpha and Beta reported the following account
information from their year-end separate financial records:
Alpha Beta
$95,000 $88,000
800,000 300,000
Cost of Goods Sold 600,000 180,000
Inventory
Sales Revenue
During the current year, Alpha sold inventory to Beta for $100,000. As of year end, Beta had resold only 60 percent of
these intra-entity purchases. Alpha sells inventory to Beta at the same markup it uses for all of its customers.
What is the total for consolidated cost of goods sold?
Chapter 5 Solutions
Advanced Accounting
Ch. 5 - Prob. 1QCh. 5 - Prob. 2QCh. 5 - Prob. 3QCh. 5 - Prob. 4QCh. 5 - James, Inc., sells inventory to Matthews Company,...Ch. 5 - Prob. 6QCh. 5 - Prob. 7QCh. 5 - Prob. 8QCh. 5 - Prob. 9QCh. 5 - Prob. 10Q
Ch. 5 - Prob. 11QCh. 5 - Prob. 12QCh. 5 - Prob. 13QCh. 5 - Prob. 1PCh. 5 - Prob. 2PCh. 5 - Prob. 3PCh. 5 - Prob. 4PCh. 5 - Prob. 5PCh. 5 - Prob. 6PCh. 5 - Prob. 8PCh. 5 - Prob. 11PCh. 5 - What is the total of consolidated cost of goods...Ch. 5 - Prob. 13PCh. 5 - Prob. 14PCh. 5 - Prob. 15PCh. 5 - What is the consolidated total for inventory at...
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