# Intra-Entity Inventory Transfer: Example and Journal Entries## Scenario OverviewBrooks owns 30% of Ghost Inc. The following details an intra-entity transfer involving inventory, and illustrates the necessary accounting journal entries.### Inventory Transfer Details- **Year:** 2020- **Cost to Ghost Inc.:** $42,000- **Price to Brooks (Selling Price):** $63,000- **Ending Inventory Balance for Brooks (as of 12/31/2020):** $15,000### Required Journal EntriesThe task is to determine the appropriate journal entries for December 31, 2020, and the entries for 2021, assuming the remaining inventory is sold.#### Journal Entries Template| Date | Account | Debit | Credit ||------------|-----------------------------|-------|--------|| | | | |## Instructions1. **For 12/31/2020:** - Record any necessary adjustments or entries reflecting the intra-entity transfer and ending inventory balance.2. **For 2021:** - If the remaining inventory is sold, record the journal entry reflecting this transaction.This scenario is intended to provide a practical understanding of handling inventory transfers within entities and the implications for financial reporting.

Elimination entries: In consolidation worksheet preparation, few entries are recorded to eliminate…

Brooks owns 30% of Ghost Inc. The following information pertains to an intra entity transfer. What is the journal entry for 12/31/20 and what is the journal entry in 2021 if the remaining inventory is sold? Make sure to date your journal entries. Cost to Ghost Price to Brooks (selling price) $63,000 Year 12/31 (ending inventory bal. for Brooks) 2020 $42,000 $15,000 BI Format Date Account Debit Credit

Brooks owns 30% of Ghost Inc. The following information pertains to an intra entity transfer. What is the journal entry for 12/31/20 and what is the journal entry in 2021 if the remaining inventory is sold? Make sure to date your journal entries. Cost to Ghost Price to Brooks (selling price) $63,000 Year 12/31 (ending inventory bal. for Brooks) 2020 $42,000 $15,000 BI Format Date Account Debit Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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