d. With respect to the deferred gain on intercompany sale, what effect (i.e., amount) will it have on the [AD]] entry necessary to prepare the consolidated financial statements for the year ended December 31, 2016? In addition, specify the account that will be debited and the account that will be credited in the [ADJ] entry for the effect of the deferred gain on intercompany sale. Prepare the [AD]] consolidation entry for December 31, 2016 to show the effect of the deferred gain on the intercompany sale. Consolidation Journal [AD] gain] Description [idep] e. Prepare the required [] consolidation entry in 2016 (assuming the subsidiary is still holding the equipment). Consolidation Journal Equipment Description 0 Debit D 0 D D 0 Debit 0 Credit 0 0 0 0 Credit 0 0 0 0 0
d. With respect to the deferred gain on intercompany sale, what effect (i.e., amount) will it have on the [AD]] entry necessary to prepare the consolidated financial statements for the year ended December 31, 2016? In addition, specify the account that will be debited and the account that will be credited in the [ADJ] entry for the effect of the deferred gain on intercompany sale. Prepare the [AD]] consolidation entry for December 31, 2016 to show the effect of the deferred gain on the intercompany sale. Consolidation Journal [AD] gain] Description [idep] e. Prepare the required [] consolidation entry in 2016 (assuming the subsidiary is still holding the equipment). Consolidation Journal Equipment Description 0 Debit D 0 D D 0 Debit 0 Credit 0 0 0 0 Credit 0 0 0 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Please help! Cost method is extremely confusing to me! Zooming in to see the numbers helps!
Dont Allow image format
![d. With respect to the deferred gain on intercompany sale, what effect (i.e., amount) will it have on the [AD]] entry necessary to prepare the consolidated financial statements for the year ended December 31, 2016? In addition, specify the account that will be
debited and the account that will be credited in the [ADJ] entry for the effect of the deferred gain on Intercompany sale.
Prepare the [ADJ] consolidation entry for December 31, 2016 to show the effect of the deferred gain on the intercompany sale.
Consolidation Journal
[AD]]
[gain]
[idep]
Description
Equipment
+
÷
Description
e. Prepare the required [1] consolidation entry in 2016 (assuming the subsidiary is still holding the equipment).
Consolidation Journal
+
Debit
+
+
+
0
0
Debit
Credit
0
0
0
0
0
0
0
Credit
0
0
0
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faaae2147-9264-47d1-984e-b2380e2f6ae6%2F7087f1df-ac02-4579-9a29-5d24c002a5af%2Fd82x1u8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:d. With respect to the deferred gain on intercompany sale, what effect (i.e., amount) will it have on the [AD]] entry necessary to prepare the consolidated financial statements for the year ended December 31, 2016? In addition, specify the account that will be
debited and the account that will be credited in the [ADJ] entry for the effect of the deferred gain on Intercompany sale.
Prepare the [ADJ] consolidation entry for December 31, 2016 to show the effect of the deferred gain on the intercompany sale.
Consolidation Journal
[AD]]
[gain]
[idep]
Description
Equipment
+
÷
Description
e. Prepare the required [1] consolidation entry in 2016 (assuming the subsidiary is still holding the equipment).
Consolidation Journal
+
Debit
+
+
+
0
0
Debit
Credit
0
0
0
0
0
0
0
Credit
0
0
0
0
0
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