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Required: Determine the account balance for each account on the three financial statements after the new transaction is recorded.

Required: Determine the account balance for each account on the three financial statements after the new transaction is recorded.

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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Selected accounts from the year-to-date financial statements for Nowak Company and its wholly owned subsidiary, Shawinigan Ltd., were as follows: Cash Inventory Deferred income tax asset Sales Cost of sales Income tax expense Additional Information . Nowak Shawinigan $ 570 $ 750 210 • The above statements include the only intercompany transaction this year which was a cash sale of $600 by Nowak to Shawinigan at its regular margin of 30% of sales and accrued income tax at its tax rate of 40%. Cash Inventory Deferred income tax asset 9,100 6,370 910 Sales Cost of sales Income tax expense Today, Shawinigan sold $400 of the inventory it had purchased from Nowak to an arm's length party at its regular markup of 30% over cost and accrued income tax at its tax rate of 40%. 180 1,740 90 5,200 4,000 450 Required: Determine the account balance for each account on the three financial statements after the new transaction is recorded. (Input all amounts as positive values. Omit $ sign in your response.) $ $ Consolidated 750 2,310 372 13,700 8,800 1,340 Nowak Shawinigan $ Consolidated $
Transcribed Image Text:Selected accounts from the year-to-date financial statements for Nowak Company and its wholly owned subsidiary, Shawinigan Ltd., were as follows: Cash Inventory Deferred income tax asset Sales Cost of sales Income tax expense Additional Information . Nowak Shawinigan $ 570 $ 750 210 • The above statements include the only intercompany transaction this year which was a cash sale of $600 by Nowak to Shawinigan at its regular margin of 30% of sales and accrued income tax at its tax rate of 40%. Cash Inventory Deferred income tax asset 9,100 6,370 910 Sales Cost of sales Income tax expense Today, Shawinigan sold $400 of the inventory it had purchased from Nowak to an arm's length party at its regular markup of 30% over cost and accrued income tax at its tax rate of 40%. 180 1,740 90 5,200 4,000 450 Required: Determine the account balance for each account on the three financial statements after the new transaction is recorded. (Input all amounts as positive values. Omit $ sign in your response.) $ $ Consolidated 750 2,310 372 13,700 8,800 1,340 Nowak Shawinigan $ Consolidated $
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