4. Pine Company, a computer manufacturer, owns 90% of the outstanding stock of Slider Company. On January 1, 2017, Pine sold computers to Slider for $500,000. The computers, which are inventory to Pine, had a cost to Pine of $350,000. Slider Company estimated that the computers had a useful life of six years from the date of purchase. Slider Company reported net income of $310,000, and Pine Company reported net income of $870,000 from its independent operations (including sales to affiliates) for the year ended December 31, 2017. Required: A. Prepare in general journal form the workpaper entries necessary because of the intercompany sales in the consolidated statements workpaper for both 2017 and 2018. B. Calculate controlling interest in consolidated net income for 2017.

Chemistry: An Atoms First Approach
2nd Edition
ISBN:9781305079243
Author:Steven S. Zumdahl, Susan A. Zumdahl
Publisher:Steven S. Zumdahl, Susan A. Zumdahl
Chapter7: Chemical Energy
Section: Chapter Questions
Problem 28E: Consider the accompanying diagram. Ball A is allowed to fall and strike ball B. Assume that all of...
icon
Related questions
Question

hh.1

4. Pine Company, a computer manufacturer, owns 90% of the outstanding stock of Slider
Company. On January 1, 2017, Pine sold computers to Slider for $500,000. The computers,
which are inventory to Pine, had a cost to Pine of $350,000. Slider Company estimated that the
computers had a useful life of six years from the date of purchase.
Slider Company reported net income of $310,000, and Pine Company reported net income of
$870,000 from its independent operations (including sales to affiliates) for the year ended
December 31, 2017.
Required:
A. Prepare in general journal form the workpaper entries necessary because of the
intercompany sales in the consolidated statements workpaper for both 2017 and 2018.
B. Calculate controlling interest in consolidated net income for 2017.
Transcribed Image Text:4. Pine Company, a computer manufacturer, owns 90% of the outstanding stock of Slider Company. On January 1, 2017, Pine sold computers to Slider for $500,000. The computers, which are inventory to Pine, had a cost to Pine of $350,000. Slider Company estimated that the computers had a useful life of six years from the date of purchase. Slider Company reported net income of $310,000, and Pine Company reported net income of $870,000 from its independent operations (including sales to affiliates) for the year ended December 31, 2017. Required: A. Prepare in general journal form the workpaper entries necessary because of the intercompany sales in the consolidated statements workpaper for both 2017 and 2018. B. Calculate controlling interest in consolidated net income for 2017.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Chemistry: An Atoms First Approach
Chemistry: An Atoms First Approach
Chemistry
ISBN:
9781305079243
Author:
Steven S. Zumdahl, Susan A. Zumdahl
Publisher:
Cengage Learning
Chemistry & Chemical Reactivity
Chemistry & Chemical Reactivity
Chemistry
ISBN:
9781337399074
Author:
John C. Kotz, Paul M. Treichel, John Townsend, David Treichel
Publisher:
Cengage Learning
Chemistry & Chemical Reactivity
Chemistry & Chemical Reactivity
Chemistry
ISBN:
9781133949640
Author:
John C. Kotz, Paul M. Treichel, John Townsend, David Treichel
Publisher:
Cengage Learning
Chemistry for Engineering Students
Chemistry for Engineering Students
Chemistry
ISBN:
9781337398909
Author:
Lawrence S. Brown, Tom Holme
Publisher:
Cengage Learning
Chemistry: The Molecular Science
Chemistry: The Molecular Science
Chemistry
ISBN:
9781285199047
Author:
John W. Moore, Conrad L. Stanitski
Publisher:
Cengage Learning
General Chemistry - Standalone book (MindTap Cour…
General Chemistry - Standalone book (MindTap Cour…
Chemistry
ISBN:
9781305580343
Author:
Steven D. Gammon, Ebbing, Darrell Ebbing, Steven D., Darrell; Gammon, Darrell Ebbing; Steven D. Gammon, Darrell D.; Gammon, Ebbing; Steven D. Gammon; Darrell
Publisher:
Cengage Learning