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pany transferre the year invento pared the follows tin Subsidiary (e Esidi armings-Sub st of Goods Sol

pany transferre the year invento pared the follows tin Subsidiary (e Esidi armings-Sub st of Goods Sol

FINANCIAL ACCOUNTING
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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Parent company transferred inventory to its 60% owned subsidiary in 2020, The transfer price was $240,000 and the goods cost S180,000. By the end of the year inventory on hand are valued at $48,000 transfer price. Parent company uses the equity method in its intemal records. Khalid prepared the following consolidation entry "G without amounts in 2021: "G Investment in Subsidiary (60%) Retained Earnings-Subsidiary (40%) XXX XXX Cost of Goods Sold Required: i Do you agree with Khalid? 2 If you don't agroe calculate the necessary amount and record the proper journal entry
Transcribed Image Text:Parent company transferred inventory to its 60% owned subsidiary in 2020, The transfer price was $240,000 and the goods cost S180,000. By the end of the year inventory on hand are valued at $48,000 transfer price. Parent company uses the equity method in its intemal records. Khalid prepared the following consolidation entry "G without amounts in 2021: "G Investment in Subsidiary (60%) Retained Earnings-Subsidiary (40%) XXX XXX Cost of Goods Sold Required: i Do you agree with Khalid? 2 If you don't agroe calculate the necessary amount and record the proper journal entry
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