Secam is a 80% owned subsidairy of Pal corporation, acquired at book value severa ago. Compartive separate compay income statements items for 2020 is shown below Pal 30,000,000 Secam 12,800,000 Sales 800,000 Gain on sale of truck Cost of goods sold 20,000,000 8,000,000 Operating expenses 4,000,000 2,600,000 On January 1, 2020 Secam sold a truck with a 10 year remaining useful life to $1,800,000 cash Cost of the truck was $1.400.000 and accumulated depre- $400,000. At year-end 2020. Pal owed S $1.500. Required: 1- Record journal entries prepared by "parent" during 2020 2- Prepare elimination/adjusting entries for the year 2020. 135 P TV * ww HAAS ا سر من

Secam is a 80% owned subsidairy of Pal corporation, acquired at book value severa ago. Compartive separate compay income statements items for 2020 is shown below Pal 30,000,000 Secam 12,800,000 Sales 800,000 Gain on sale of truck Cost of goods sold 20,000,000 8,000,000 Operating expenses 4,000,000 2,600,000 On January 1, 2020 Secam sold a truck with a 10 year remaining useful life to $1,800,000 cash Cost of the truck was $1.400.000 and accumulated depre- $400,000. At year-end 2020. Pal owed S $1.500. Required: 1- Record journal entries prepared by "parent" during 2020 2- Prepare elimination/adjusting entries for the year 2020. 135 P TV * ww HAAS ا سر من

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2P

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Question

Secam is a 80% owned subsidairy of Pal corporation, acquired at book value several years
ago. Compartive separate compay income statements items for 2020 is shown below:
Secam
Pal
30,000,000
Sales
12,800,000
Gain on sale of truck
800,000
Cost of goods sold
20,000,000
8,000,000
Operating expenses
4,000,000
2,600,000
On January 1, 2020 Secam sold a truck with a 10 year remaining useful life to Pal for
$1,800,000 cash
Cost of the truck was $1.400.000 and accumulated depreciation
$400,000. At year-end 2020, Pal owed S$1.500.
Required:
1- Record journal entries prepared by "parent" during 2020
2- Prepare elimination/adjusting entries for the year 2020.
113 P.
ا حسین

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