b. Prepare the consolidation entry or entries in the consolidation worksheet prepared as of December 31, 20X4, to remove the effects of the intercompany sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to nearest dollar.) No A B Event 1 2 Answer is complete but not entirely correct. Accounts Equipment Investment in Series Company Accumulated depreciation Accumulated depreciation Depreciation expense Debit 4,000 9,429 3,143 Credit 13,429 3,143
b. Prepare the consolidation entry or entries in the consolidation worksheet prepared as of December 31, 20X4, to remove the effects of the intercompany sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to nearest dollar.) No A B Event 1 2 Answer is complete but not entirely correct. Accounts Equipment Investment in Series Company Accumulated depreciation Accumulated depreciation Depreciation expense Debit 4,000 9,429 3,143 Credit 13,429 3,143
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: acounting
Transcribed Image Text:b. Prepare the consolidation entry or entries in the consolidation worksheet prepared as of December 31, 20X4, to remove the effects
of the intercompany sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Round your answers to nearest dollar.)
No
A
B
Event
1
2
Answer is complete but not entirely correct.
Accounts
Equipment
Investment in Series Company
Accumulated depreciation
Accumulated depreciation
Depreciation expense
Debit
4,000
9,429
3,143
Credit
13,429
3,143
Transcribed Image Text:Playoff Corporation holds 90 percent ownership of Series Company. On July 1, 20X3, Playoff sold equipment that it had purchased for
$36,000 on January 1, 20X1, to Series for $32,000. The equipment's original six-year estimated total economic life remains
unchanged. Both companies use straight-line depreciation. The equipment's residual value is considered negligible.
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