1. Prepare required entries in Aziz Books using fully adjusted equity method in 2019 and 2020. 2. Prepare all required elimination entries in 2019 and 2020. 3. Compute Consolidated net income in 2019 and 2020 and income assigned to NCI and to CI.
Nidal Corp. acquired 90% of Wail Corp for $270,000 on Jan.1,2019, on that date Jazzy fair value of net assets equal book value. Following intercompany transactions occurred:
* During 2019 Aziz sold Jazzy inventory by $60,000 at end of 2019, the original cost is $45,000 only $5,000 of inventory is still on hand at Jazzy book while remaining was sold during 2020.
* On Jan.1, 2019 Jazzy Sold inventory to Aziz by $100,000, the original cost of them is $80,000, at end of 2019 $10,000 of inventory is still on hand and they were sold in 2020.
Jazzy determined income and paid dividends as following:
Income Dividends
2019 $80,000 $20,000
2020 $100,000 $20,000
In 2020 Aziz determined net income of $200,000
Required:
1. Prepare required entries in Aziz Books using fully adjusted equity method in 2019 and 2020.
2. Prepare all required elimination entries in 2019 and 2020.
3. Compute Consolidated net income in 2019 and 2020 and income assigned to NCI and to CI.
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