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Player Company acquired 70 percent ownership of Scout Company's voting shares on January 1, 20X2. Du purchased Inventory for $23,000 and sold the full amount to Scout Company for $33,000. On December 31 nventory Included $6,600 of Items purchased from Player. Also in 20X5, Scout purchased Inventory for $50 Player for $80,000. Player Included $20,000 of its purchase from Scout in ending Inventory on December 3 Summary Income statement data for the two companies revealed the following: Sales Income from Scout Cost of Goods Sold Other Expenses Total Expenses Net Income Required: Player Company $ 354,450 48,050 $ 482,500 $ 230,000 69,000 $ (299,000) $ 103,500 Scout Company $ 210,000 $ 210,000 $ 101,000 30,000 $ (131,000) $ 79,000

Player Company acquired 70 percent ownership of Scout Company's voting shares on January 1, 20X2. Du purchased Inventory for $23,000 and sold the full amount to Scout Company for $33,000. On December 31 nventory Included $6,600 of Items purchased from Player. Also in 20X5, Scout purchased Inventory for $50 Player for $80,000. Player Included $20,000 of its purchase from Scout in ending Inventory on December 3 Summary Income statement data for the two companies revealed the following: Sales Income from Scout Cost of Goods Sold Other Expenses Total Expenses Net Income Required: Player Company $ 354,450 48,050 $ 482,500 $ 230,000 69,000 $ (299,000) $ 103,500 Scout Company $ 210,000 $ 210,000 $ 101,000 30,000 $ (131,000) $ 79,000

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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Player Company acquired 70 percent ownership of Scout Company's voting shares on January 1, 20X2. During 20X5, Player purchased Inventory for $23,000 and sold the full amount to Scout Company for $33,000. On December 31, 20X5. Scout's ending Inventory Included $6.600 of Items purchased from Player. Also in 20X5, Scout purchased Inventory for $50,000 and sold the units to Player for $80,000. Player Included $20,000 of Its purchase from Scout in ending Inventory on December 31, 20X5. Summary Income statement data for the two companies revealed the following: Sales Income from Scout Cost of Goods Sold Other Expenses Total Expenses Net Income Consolidated sales Required: a. Compute the amount to be reported as sales in the 20X5 consolidated Income statement. Consolidated COGS Player Company $ 354,450 48,050 $ 482,500 $ 230,000 69,000 $ (299,000) $ 103,500 Scout Company $ 210,000 b. Compute the amount to be reported as cost of goods sold in the 20X5 consolidated Income statement. Note: Do not round Intermediate calculations. Income to NCI $ 210,000 $ 101,000 30,000 $ (131,000) $ 79,000 c. What amount of Income will be assigned to the noncontrolling shareholders in the 20X5 consolidated Income statement? Note: Do not round Intermediate calculations. Income to controlling interest d. What amount of Income will be assigned to the controlling Interest in the 20X5 consolidated Income statement? Note: Do not round Intermediate calculations.
Transcribed Image Text:Player Company acquired 70 percent ownership of Scout Company's voting shares on January 1, 20X2. During 20X5, Player purchased Inventory for $23,000 and sold the full amount to Scout Company for $33,000. On December 31, 20X5. Scout's ending Inventory Included $6.600 of Items purchased from Player. Also in 20X5, Scout purchased Inventory for $50,000 and sold the units to Player for $80,000. Player Included $20,000 of Its purchase from Scout in ending Inventory on December 31, 20X5. Summary Income statement data for the two companies revealed the following: Sales Income from Scout Cost of Goods Sold Other Expenses Total Expenses Net Income Consolidated sales Required: a. Compute the amount to be reported as sales in the 20X5 consolidated Income statement. Consolidated COGS Player Company $ 354,450 48,050 $ 482,500 $ 230,000 69,000 $ (299,000) $ 103,500 Scout Company $ 210,000 b. Compute the amount to be reported as cost of goods sold in the 20X5 consolidated Income statement. Note: Do not round Intermediate calculations. Income to NCI $ 210,000 $ 101,000 30,000 $ (131,000) $ 79,000 c. What amount of Income will be assigned to the noncontrolling shareholders in the 20X5 consolidated Income statement? Note: Do not round Intermediate calculations. Income to controlling interest d. What amount of Income will be assigned to the controlling Interest in the 20X5 consolidated Income statement? Note: Do not round Intermediate calculations.
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