On January 1, 2021, Seema an affiliated company sold land that cost $240,000 to its parent, Prime Company at a transfer price of $400,000. On August 18, 2030, Prime sold the land to outside parties for $460,000 cash. 1-Prepare consolidated entries necessary, (LEAVE EMPTY LINE BETWEEN ENTRIES.) a-at the end of the year of the intra-entity transfer 2021. b-in 2022 and subsequent years. c-the sale of the land to outsiders in 2030.

On January 1, 2021, Seema an affiliated company sold land that cost $240,000 to its parent, Prime Company at a transfer price of $400,000. On August 18, 2030, Prime sold the land to outside parties for $460,000 cash. 1-Prepare consolidated entries necessary, (LEAVE EMPTY LINE BETWEEN ENTRIES.) a-at the end of the year of the intra-entity transfer 2021. b-in 2022 and subsequent years. c-the sale of the land to outsiders in 2030.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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