Lorn Corporation purchased inventory from Dresser Corporation for P120,000 on September 20, 20x2, and resold 80% of the purchased inventory to unaffiliated companies prior to December 31, 20x2, for P140,000. Dresser produced the inventory sold to Lorn for P75,000. Lorn owns 70% of Dresser’s voting common stock. The companies had no other transactions during 20x2. What inventory balance will be provided by the consolidated entity on December 31, 20x2? A. P15,000            C. P24, 000 B. P16, 800           D. P39, 000

Q: What is the double entry when: During 20x0, Subsea Co will sell inventory which it bought for…

A: An unrealised inter-company profit exists only when there is a sale of goods by one company in the…

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: On January 1, 20X1, Rivera Company (RC) and Caventa Company (CC) each acquired 40% of the ordinary…

A: 1. The amount of income RC should recognize from, TC P60000

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

A:

Q: Shark Company purchased inventory from Dolphin Corporation for P120,000 on October 4, 2020, and…

A: Consolidated Statement: It is a financial statement, which present the all income ,expenses, assets…

Q: Pit Coporation owns 75% of Stop Company's outstanding common stock.  On 08/28/21, Pit sold inventory…

A: Consolidated entry is the single entry by taking multiple accounts or businesses into a single point…

Q: Paggle Corporation owns 80% of Spillway Inc.'s common stock that was purchased at its underlying…

A: The question is based on the concept of Consolidated Financial Statements.

Q: statement in 2020?*

A: The cost of goods manufactured (COGM) is the sum of the cost of direct labor used, the cost of…

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: 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: Pit Coporation owns 75% of Stop Company's outstanding common stock.  On 08/28/21, Pit sold inventory…

A: Pit's journal entries:- 1). To acquire the inventory  Inventory  A/c   debit     $324,000      To…

Q: BB Inc., acquired a 60 percent interest in HH Company several years ago. During 20x7, HH sold…

A: The cost of goods sold as reported on the consolidated financial statements of the Borrower and its…

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

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

Q: Parkette, Inc., acquired a 60 percent interest in Skybox Company several years ago. During 2020,…

A: Unrealized Profit Upto 31/12/2020   Profit from Intra Activity = (110,000 -90,200) = 19,800 Closing…

Q: Lorn Corporation purchased inventory from Dresser Corporation for P 120,000 on September 20, 20x2,…

A: A parent company is said to be the company that holds enough stock of another firm to have control…

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

A: The total of all expenditures and expenses that are directly connected to the manufacturing of…

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

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

Q: What inventory balance will be provided by the consolidated entity on December 31, 20x2? A. P15,…

A: Inventory reported by Lorn P 24,000 Unrealized profit (P45,000 x .20) (9,000)

Q: Lorn Corporation purchased inventory from Dresser Corporation for P 120,000 on September 20, 20x2,…

A: Following are the answers to the given questions

Q: The following transactions occurred for the period ended regarding LL and its two subsidiaries L1…

A: Calculation of LL Sales Revenue =P3,000,000 Calculation of L1 Sales Revenue =P2,000,000 Calculation…

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

A: Cost of goods sold is the amount of direct expenses and overhead applied of the goods and does not…

Q: Paggle Corporation owns 80% of Spillway Inc.'s common stock that was purchased at its underlying…

A: Working Notes: 1. Total Profit from downstream sales: = Sales - Cost  = ($50,000-$40,000) = $10,000…

Q: Paggle Corporation owns 80% of Spillway Inc.'s common stock that was purchased at its underlying…

A: Explanation: 1. Paggle Corporation owns 80% of Spillway Inc.'s common stock. So, Paggle Corporation…

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

A: Answer Option E is the Correct Answer i.e 69,200

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.