KK Corporation owns 80 percent of LL Corporation’s common stock. During October, LL sold merchandise to KK for P100.000. At December 31, 50 percent of this merchandise remains in KK’s inventory. Gross profit percentages were 30 percent for KK and 40 percent for LL. The amount of unrealized intercompany profit in ending inventory at December 31 that should eliminated in the consolidation process is

Q: Cattle Company sold inventory with a cost of $40,000 to its 90%-owned subsidiary, Range Corp., for…

A: Lets understand the basics. When inter company transaction of inventory is made between the parent…

Q: In 2022, ABC Company sold inventory costing P150,000 to its 80%-owned subsidiary for P210,000. A…

A: Consolidated Financial statements present assets, liabilities, equities , income , expenses etc of…

Q: Dave Company sold inventory to Raine Company, its 90%-owned subsidiary. The sale is on account and…

A: While preparing the consolidated financial statement, intercompany receivables and payables are…

Q: The following are several figures reported for Allister and Barone as of December 31, 2021:…

A: A degree of confidence regarding the correctness and dependability of the reported financial…

Q: Planner Corporation owns 60 percent of Schedule Company’s voting shares. During 20X3, Planner…

A: Ending inventory: Sales = (14,000 x $108) – (9,000 x $108) = $1,512,000 – $972,000 = $540,000 Cost…

Q: Pint Co. owns 90% of the outstanding shares of Glass Inc. During 2022, Pint sold merchandise costing…

A: In financial accounting, Consolidation refers to the financial statement consolidation process in…

Q: Scarlet Company owns 80% of Tamara Corp.’s common stock. During October 2019 Tamara sold merchandise…

A: Profit from the sale of inventory between consolidating entities is included within the net income…

Q: Proform acquired 70 percent of ClipRite on June 30, 2020, for $910,000 in cash.  Based on ClipRites…

A: The cost of a product to a distributor, producer, or retailer is known as the cost of goods sold…

Q: The following are several figures reported for Allister and Barone as of December 31, 2021:…

A: To determine balances for the above-mentioned items that would appear on Allister's consolidated…

Q: Inventory s 948,400 $ 1,924,000 $ 875,600 Sales Cost of goods sold Operating expenses 622,000 Net…

A: When the parent company and the subsidiary company merge their financial statement, then the…

Q: What amount of consolidated net income will be assigned to the controlling interest for 20x2?   A.…

A: Consolidated sales $140,000Cost of goods sold (60,000)Consolidated net income $ 80,000Income to…

Q: Let Company owns 80% of Tam Corp.’s common stock. During October 2019 Tam sold merchandise to Let…

A: The question is multiple choice question and related to Consolidated Financial Statements.

Q: Planet Corporation acquired 90 percent of Saturn Company’s voting shares of stock in 20X1. During…

A: Answer to (1) : Journal entries Planet recorded for the purchase of inventory and resale to Saturn…

Q: Alpha Company owns 80 percent of the voting stock of Beta Company. Alpha and Beta reported the…

A: Consolidation is a method of representing the financial statements of the company. It includes the…

Q: What are the consolidated balances for? Cost of Goods Sold Net income attributable to non…

A: Consolidation is a process of acquiring the various small companies by the large ones by obtaining…

Q: What amount of sales will be reported in the 20x2 consolidated income statement?

A: Consolidated revenue is the amount of sale of goods to the customers.

Q: entory costing to Its 80%-owned subsidiary for P210,000. A portion of this was resold by the…

A: 1. 225,000 2. 4,658,000 3. 7,240,000 1. Record upon sale to subsidiary   Debit Credit Parent…

Q: Monroe Company purchased ốf Adams Company on January 1, The purchase price paid was $600,000. On…

A: When a company invests more than 20% but less than 50%, it uses equity method to account for such…

Q: Alpha Company owns 80 percent of the voting stock of Beta Company. Alpha and Beta reported the…

A: Consolidation, in the context of financial accounting and reporting, in the context of financial…

Q: Inventory Sales Investment income Cost of goods sold Operating expenses eporte TOT All and Allister…

A: A consolidated financial statement is a combination of a financial statement of a parent company and…

Q: P Inc. owns a 60% interest in S Corp.  During 2020 S sold inventory costing $160,000 to P for…

A:

Q: Alex Company owns 80 percen Company. During the year, Alex sold merchandise that cost $9,000 to…

A: Parent company is that company which controls other company known as subsidiary company.…

Q: Parent Co. owns 80% of Subsidiary Co. During 2021, Parent Co. sold goods with a 40% gross profit to…

A: Following is the answer to the given question

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A: Cost of goods sold (COGS) is a section on an income statement that shows the expenses a company…

Q: K owns 80% of T’s common stock.  During October T sold merchandise to K for $250,000.  On December…

A: Ending inventory with Parent company = Total inventory sold x 40% = $250000 x 40% = $100,000

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A: The objective of the question is to calculate the minority interest income in the consolidated…

Q: Martindale Company, a 100% owned subsidiary of Weisman Corporation, sells inventory to Weisman at a…

A: Pre-consolidation income (loss) refers to the net income or loss generated by a subsidiary before…

Q: fifth of this goods inventory. The following information pertains to PP and SS's sales for 20x9:…

A: P100,000 should be added to the Cost of Sales in PP Company.

Q: If company A acquired 70% of company B on 1/1/16. During 2016 company A made several inventory sales…

A: When sales are made by a parent to a subsidiary it is a downstream sales. When sales is made by a…

Q: 5-Parent Co. acquired 100% of Sub, Inc. on January 1, 2021. During 2021, Parent sold goods to Sub…

A: Journal entry is the process of recording the business transactions in the accounting books for the…

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: Planet Corporation acquired 90 percent of Saturn Company’s voting shares of stock in 20X1. During…

A: A journal entry is used to record a business deal in the company's accounting records.  In addition…

Q: AAA acquired a 70% interest in BBB on January 2, 20x1 for $468,000 when BBB net assets had a book…

A: Consolidated net income is determined after making adjustments of the net realized profit that arise…

Q: During 20x9, PP Corporation recorded sales of inventory costing P500,0000 to SS Company, its wholly…

A: The cost of goods sold includes the costs incurred by the business in respect of manufacturing and…

Q: ClipRite sold ProForm inventory costing $72,000 during the last six months of 2020 for $120,000.  At…

A: Consolidation is a term used for merging of several companies of an industry. The assets,…

Q: Tiberend, Inc., sold $150,000 in inventory to Schilling Company during 2017 for $225,000. Schilling…

A: Gross Profit Gross profit is refer as the profit of the company which are calculated by deducting…

Q: In 2020, parent reports Cost of Goods Sold of $4,000,000.  Its 90% owned subsidiary reports Cost of…

A: Cost of goods sold: The direct expense incurred by the company in producing the products that the…

Q: Lorn Corporation purchased inventory from Dresser Corporation for P120,000 on September 20, 20x2,…

A: (A). P60,000 is the correct option.

Q: Scarlet Company owns 80% of Tamara Corp.'s common stock. During October 2019 Tamara sold merchandise…

A: Unrealized profit is a kind of potential profit that existed in the books, generated from an…

Q: Ice Corporation owns 30% of Idea Company and applies the equity method. In 2XX0, Ice Corp. sells…

A: Gross profit is a measure of a company's financial health and performance. It represents the amount…

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.