Procter Company owns 80% of the outstanding stock of Silex Company.On January 1, 2019, Silex Company sold land to Procter Company for $350,000 and a buildingfor $500,000. Silex had originally purchased the land on June 30, 2010, for $200,000. SilexCompany originally purchased a building for 600,000 in January of 2009.The estimated useful life of the building and the new machinery is 15 years.Required:A. Prepare the entries on the books of Procter related to the intercompany sale of land for theyears ended December 31, 2019 and December 31, 2020.B. Prepare in general journal form the workpaper entries necessary because of the intercompanysale of land in:1. The consolidated financial statements workpaper for the year ended December 31, 2019.2. The consolidated financial statements workpaper for the year ended December 31, 2020.

Journal entry is an account where the company records the financial transactions of the company on…

Procter Company owns 80% of the outstanding stock of Silex Company. On January 1, 2019, Silex Company sold land to Procter Company for $350,000 and a building for $500,000. Silex had originally purchased the land on June 30, 2010, for $200,000. Silex Company originally purchased a building for 600,000 in January of 2009.

Procter Company owns 80% of the outstanding stock of Silex Company. On January 1, 2019, Silex Company sold land to Procter Company for $350,000 and a building for $500,000. Silex had originally purchased the land on June 30, 2010, for $200,000. Silex Company originally purchased a building for 600,000 in January of 2009.

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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