Corn Corporation purchased inventory from Beef Corporation for P 120,000 on September 20, 2012, and resold 80% of the purchased inventory to unaffiliated companies prior to December 31, 2012, for P140,000. Beef produced the inventory sold to Lorn for P75,000. Lorn owns 70% of Beef's voting common stock. The companies had no other transactions during 2012.

Corn Corporation purchased inventory from Beef Corporation for P 120,000 on September 20, 2012, and resold 80% of the purchased inventory to unaffiliated companies prior to December 31, 2012, for P140,000. Beef produced the inventory sold to Lorn for P75,000. Lorn owns 70% of Beef's voting common stock. The companies had no other transactions during 2012.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: bove, was prepared immediately before this transaction. Provide the Investor Company's balances…

A: A balance sheet is an accounting report that shows a corporation's assets liabilities, and…

Q: Company Y purchases a controlling interest in Company Z on January 1, 2019. Which of the following…

A: Ans. C Company Y's Shareholders' Equity as well as Company Y's proportional share ofCompany Z's net…

Q: On September 17, 2021 Ziltech inc entered into an agreement to sell one of its divisions that…

A: The assets are recognized as held for sale if it satisfies some conditions are as follows:…

Q: When the acquisition of a subsidiary occurs during a reporting period, the com O and subsidiary…

A: A corporation which belongs to another corporation which is usually referred to as parent…

Q: How is the noncontrolling interest in a subsidiary company calculated as of the end of a reporting…

A: Definition: Non-controlling interest in a subsidiary company: The non-controlling interest does…

Q: Prepare a balance sheet for Pop Corporation as of January 2, 2016, immediately after the merger,…

A: The excess consideration paid by the acquirer (purchasor) to the acquiree (sellor) over the net…

Q: Use the following to answer questions 8 through 10: On May 1, 2021, Jazzie Co. agreed to sell the…

A: SOLUTION- WORKING NOTE- GAIN ON ASSET SALE = ($80 MILLION - $ 48 MILLION)…

Q: The following condensed income statements of the Jackson Holding Company are presented for the two…

A: An income statement stands for the statement that shows profits and loss of the firm, its revenue…

Q: During a fiscal year, the balance of a parent company's Investment in Subsidiary ledger account for…

A: An equity measure is a method of accounting in which an investment is initially recognized at cost…

Q: Please do not give image format

A: Long term assets which the company plans to dispose in future are known as held for sale.Such assets…

Q: Selected information from the separate and consolidated statements of financial position and…

A: The percent of non-controlling interest ownership in S Company as of December 31, 2019.

Q: On January 1, 2022, a Parent company has a debt outstanding that was originally issued at a discount…

A: If the debt was purchased at a premium, there will be a gain or loss from the constructive…

Q: Under PFRS9, reclassification of investment in equity securities: A. Is allowed as long as it is…

A: Introduction:- This question is related to the accounting treatment of investments in equity…

Q: adjustment for consolidated entry

A: If there are intra group transactions in a consolidated group of companies, the effect of the…

Q: a) Based on the above information, calculate the non-controlling interest as at 30 June 2019. b)…

Q: On January 1, 2012, Aspen Company acquired 80 percent of Birch Company's outstanding voting stock…

A: A business combination is a transaction in which a buyer takes over control of another company (the…

Q: Repurchased share transactions are reported on the: A) income statement as a part of continuing…

A: Share repurchase-When a company buys its own shares from the market place or from the shareholders,…

Q: In May 2020, a parent sold inventories to a subsidiary entity for $60 000. The inventories had…

A: CONSOLIDATED JOURNAL ENTRY Under the consolidation method, the accounting statement merges…

Q: (a) Prepare the consolidated statement of cash flow for Maya group for the year ended 31 December…

A: The movement of money into and out of a company's or an individual's financial accounts is referred…

Q: How are rights, warrants, and options of subsidiary companies treated in the computation of…

Q: The balance sheets of E Ltd. and J Ltd. on December 30, Year 6, were as follows: E Ltd. $ 96,150…

A: Consolidation is an activity in which financial statements of a parent and its subsidiary should be…

Q: In Bell Group's consolidation worksheet, the opening balance of retained earnings under 'group'…

A: Consolidation is the process of joining together smaller businesses, assets, or operations to form a…

Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

What amount of consolidated net income will be assigned to the controlling interest for 2012?

What inventory balance will be provided by the consolidated entity on December 31, 2012?

Corn Corporation purchased inventory from Beef Corporation for P 120,000 on September 20, 2012, and
resold 80% of the purchased inventory to unaffiliated companies prior to December 31, 2012, for P140,000.
Beef produced the inventory sold to Lorn for P75,000. Lorn owns 70% of Beef's voting common stock.
The companies had no other transactions during 2012.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

CONS Group complies with IFRS 10 by consolidating the parent's financial statements at date December 31 with subsidiaries' financial statements at date June 30. Select one: True False
Intra-group transaction Question (worksheet adjustment entries for the following independent transactions) Sydney Ltd owns all of the shares of Mel Ltd. In relation to the following intragroup transactions, all parts of which are independent unless specified, prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 2019. Assume an income tax rate of 30%. (a) SYD Ltd sold inventory to MEL Ltd on 1 September 2018 for $30 000. This inventory had cost SYD Ltd $18 000. One-third of the inventory was sold by Mel Ltd to QLD Ltd for $14 000 and one-third to ADL Ltd for $14 200. (b) SYD Ltd manufactures certain items which it then markets through MEL Ltd. During the current period, SYD Ltd sold items for $60 000 to MEL Ltd at cost plus 20%. MEL Ltd has sold 75% of these transferred items at 30 June 2019. (c) During June 2019, MEL Ltd declared a $3000 dividend. The dividend was paid in August 2020. (d) In…
What is the journal entry for Subsidiary if it sold an inventory bought at $300 to its Parent company at a price of $200?
At December 31, 2023, Sandhill Corp's general ledger includes the following account balances: Copyrights $52500 Deposits with advertising agency (will be used to promote goodwill) 43000 Discount on bonds payable 74000 Excess of cost over fair value of identifiable net assets of acquired subsidiary 589500 Trademarks 106000 In the preparation of Sandhill's balance sheet as of December 31, 2023, what should be reported as total intangible assets? O $158500 O $748000 $791000 O $822000
Please answer requirement 1 - 9