Advanced Financial Accounting
11th Edition
ISBN: 9780078025877
Author: Theodore E. Christensen, David M Cottrell, Cassy JH Budd Advanced Financial Accounting
Publisher: McGraw-Hill Education
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Chapter 6, Problem 6.7E
(a)
To determine
Introduction : Journal entries are a systematic method of recording transactions as and when they occur. It is a summary of transactions divided into the debit and credit items that are recorded chronologically. It is an act of keeping and recording all the transactions occurring in the business.
The journal entries recorded for purchase of inventory and resale.
(b)
To determine
Introduction: Journal entries are a systematic method of recording transactions as and when they occur. It is a summary of transactions divided into the debit and credit items that are recorded chronologically. It is an act of keeping and recording all the transactions occurring in the business.
The journal entries recorded by O for purchase of inventory and resale to retail establishments
(c)
To determine
Introduction: Journal entries are a systematic method of recording transactions as and when they occur. It is a summary of transactions divided into the debit and credit items that are recorded chronologically. It is an act of keeping and recording all the transactions occurring in the business.
The eliminating journal entries in preparing consolidated financial statements for the year ended 20X4.
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Accounting
Woody Ltd sold inventory items to its subsidiary Buzz Lightyear Ltd and had the
following intercompany transactions:
Cost of inventory $600 000 sold for $750 000 for the year ended 30 June 2022.
One third of the inventory items were sold by Buzz Lightyear Ltd to external
parties before the financial year end 30 June 2022.
Cost of inventory $200 000 sold for $150 000 for the year ended 30 June 2023.
Half of the inventory items were sold by Buzz Lightyear Ltd to external parties
before the financial year end 30 June 2023.
Ignoring taxes, which of the following statements is correct with respect to this
transaction only for the year ended 30 June 2023
А.
Consolidated sales will decrease by $200 00
В.
Consolidated sales will increase by $550 000
C.
Consolidated profit will increase by $125 000.
D.
Consolidated profit will increase by $24 000
B.
Anderson Company, a 90% owned subsidiary of Philbin Corporation, transfers inventory to Philbin at a 25% gross profit rate. The following data are available pertaining specifically to Philbin’s intra-entity purchases from Anderson. Anderson was acquired on January 1, 2020.
2020
2021
2022
Purchases by Philbin
$
8,000
$
12,000
$
15,000
Ending inventory on Philbin’s books
1,200
4,000
3,000
Assume the equity method is used. The following data are available pertaining to Anderson’s income and dividends.
2020
2021
2022
Anderson’s net income
$
70,000
$
85,000
$
94,000
Dividends paid by Anderson
10,000
10,000
15,000
For consolidation purposes, what amount would be debited to January 1 retained earnings for the 2022 consolidation worksheet entry with regard to the unrecognized intra-entity gross profit remaining in ending inventory with respect to the 2021 intra-entity transfer of merchandise?
Multiple Choice
$3,000.…
Anderson Company, a 90% owned subsidiary of Philbin Corporation, transfers inventory to Philbin at a 25% gross profit rate.
The following data are available pertaining specifically to Philbin's intra-entity purchases from Anderson. Anderson was
acquired on january 1, 2020.
2020
2021
2022
Purchases by Philbin
Ending inventory on Philbin's books 1,200 4,000
$ ৪,000 5 12,000 $15.000
3,000
Assume the equity method is used. The following data are available pertaining to Anderson's income and dividends.
2020
2021
2022
$ 70,000 $ 85,000 $ 94,000
Dividends paid by Anderson 10,000 10,000 15,000
Anderson's net income
Assuming there are no excess amortizations associated with the consolidation, and no other intra-entity asset transfers,
compute the net income attributable to the noncontrolling interest of Anderson for 2022.
O $9,400.
$9,375.
$9,425.
$8,485.
$9,325.
Chapter 6 Solutions
Advanced Financial Accounting
Ch. 6 - Why must inventory transfers to related companies...Ch. 6 - Why is there a need for a consolidation entry when...Ch. 6 - Prob. 6.3QCh. 6 - How do unrealized intercompany profits on a...Ch. 6 - How do unrealized intercompany profits on an...Ch. 6 - Prob. 6.6QCh. 6 - Prob. 6.9QCh. 6 - Prob. 6.10QCh. 6 - How is the amount of consolidated retained...Ch. 6 - How will the elimination of unrealized...
Ch. 6 - Prob. 6.14QCh. 6 - Is an inventory sale from one subsidiary to...Ch. 6 - Prob. 6.16QCh. 6 - Prob. 6.1.1ECh. 6 - Prob. 6.1.2ECh. 6 - MultipleChoice Questions on Intercompany Inventory...Ch. 6 - MultipleChoice Questions on Intercompany Inventory...Ch. 6 - Prob. 6.1.5ECh. 6 - Prob. 6.1.6ECh. 6 - Prob. 6.3.1ECh. 6 - Prob. 6.3.2ECh. 6 - Prob. 6.3.3ECh. 6 - Prob. 6.4.1ECh. 6 - Prob. 6.4.2ECh. 6 - Prob. 6.4.3ECh. 6 - Prob. 6.4.4ECh. 6 - Prob. 6.5.1ECh. 6 - Prob. 6.5.2ECh. 6 - Prob. 6.5.3ECh. 6 - Prob. 6.7ECh. 6 - Prob. 6.8ECh. 6 - Prob. 6.9ECh. 6 - Prob. 6.10ECh. 6 - Prob. 6.11ECh. 6 - Prob. 6.12ECh. 6 - Prob. 6.13ECh. 6 - Prob. 6.15ECh. 6 - Prior-Period Inventory Profits Home Products...Ch. 6 - Prob. 6.17PCh. 6 - Prob. 6.18PCh. 6 - Prob. 6.19PCh. 6 - Prob. 6.20PCh. 6 - Prob. 6.21PCh. 6 - Prob. 6.22PCh. 6 - Prob. 6.24PCh. 6 - Prob. 6.26PCh. 6 - Prob. 6.27PCh. 6 - Prob. 6.28PCh. 6 - Prob. 6.29PCh. 6 - Prob. 6.30PCh. 6 - Prob. 6.31PCh. 6 - Prob. 6.33PCh. 6 - Prob. 6.34PCh. 6 - Prob. 6.35APCh. 6 - Prob. 6.36AP
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