ntory that S Company purchased from P Company in the December 31, 2019 consolidated Statement of financial position.
ntory that S Company purchased from P Company in the December 31, 2019 consolidated Statement of financial position.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 17E: Income Statement and Retained Earnings Huff Company presents the following items derived from its...
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Determine the carrying amount of the inventory that S Company purchased from P Company in the December 31, 2019 consolidated
![Selected information from the separate and consolidated statements of financial position and statements of
comprehensive income of P Company. and its subsidiary, S Company., as of December 31, 2019, and for the
year then ended is as follows:
P Company
S Company
Consolidated
Statement of financial position accounts
Accounts receivable .
Inventory..
Investment in S Co.
Goodwill.
Noncontrolling interest.
Stockholders' equity..
P 26,000
30,000
67,000
P19,000
25,000
P 42,000
50,000
30,000
10,000
154,000
154,000
50,000
Statement of comprehensive income accounts
P200,000
150,000
50,000
Revenues.
P140,000
P300,000
Cost of goods sold.
Gross profit.
110.000
30,000
225.000
75,000
P9,000
Equity in earnings of S Co.
Net income.
P36,000
P20,000
P36,000
Additional information
During 2019, P Company sold goods toS Company at the same markup on cost that P Co uses
for all sales. At December 31, 2019, S Co had not paid for all of these goods and still held 50% of
them in inventory.
P Company acquired its interest in S Company five years earlier (as of December 31, 2019)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F897cb48c-0087-45aa-952b-7af7d4f7170e%2F2e0a2644-7637-4584-9bfe-f4d369ecc088%2Fb4vgqh8_processed.png&w=3840&q=75)
Transcribed Image Text:Selected information from the separate and consolidated statements of financial position and statements of
comprehensive income of P Company. and its subsidiary, S Company., as of December 31, 2019, and for the
year then ended is as follows:
P Company
S Company
Consolidated
Statement of financial position accounts
Accounts receivable .
Inventory..
Investment in S Co.
Goodwill.
Noncontrolling interest.
Stockholders' equity..
P 26,000
30,000
67,000
P19,000
25,000
P 42,000
50,000
30,000
10,000
154,000
154,000
50,000
Statement of comprehensive income accounts
P200,000
150,000
50,000
Revenues.
P140,000
P300,000
Cost of goods sold.
Gross profit.
110.000
30,000
225.000
75,000
P9,000
Equity in earnings of S Co.
Net income.
P36,000
P20,000
P36,000
Additional information
During 2019, P Company sold goods toS Company at the same markup on cost that P Co uses
for all sales. At December 31, 2019, S Co had not paid for all of these goods and still held 50% of
them in inventory.
P Company acquired its interest in S Company five years earlier (as of December 31, 2019)
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