Sweeny Corporation owns 60 per cent of Bitner Company's shares. Partial 20X2 financial data for the companies and consolidated entity were as follows: Sweeny Corporation Bitner Company Consolidated Totals Sales $550,000 $450,000 $820,000 Cost of Goods Sold 310,000 300,000 420,000 Inventory, Dec. 31 180,000 210,000 375,000 On January 1, 20X2, Sweeny's inventory contained items purchased from Bitner for $75,000. The cost of the units to Bitner was $50,000. Bitner made all intercorporate sales during 20X2 to Sweeny. Required: 1. What amount of intercorporate sales occurred in 20X2? 2. How much unrealized intercompany profit existed on January 1, 20X2? On December 31, 20X2? 3. Give the worksheet consolidation entries relating to inventory and cost of goods sold needed to prepare consolidated financial statements for 20X2 4. If Bitner reports a net income of $90,000 for 20X2, what amount of income is assigned to the noncontrolling interest in the 20X2 consolidated income statement
Sweeny Corporation owns 60 per cent of Bitner Company's shares. Partial 20X2 financial data for the companies and consolidated entity were as follows:
|
|
Sweeny Corporation |
Bitner Company |
Consolidated Totals |
|
Sales |
$550,000 |
$450,000 |
$820,000 |
|
Cost of Goods Sold |
310,000 |
300,000 |
420,000 |
|
Inventory, Dec. 31 |
180,000 |
210,000 |
375,000 |
On January 1, 20X2, Sweeny's inventory contained items purchased from Bitner for $75,000. The cost of the units to Bitner was $50,000. Bitner made all intercorporate sales during 20X2 to Sweeny.
Required:
1. What amount of intercorporate sales occurred in 20X2?
2. How much unrealized intercompany profit existed on January 1, 20X2? On December 31, 20X2?
3. Give the worksheet consolidation entries relating to inventory and cost of goods sold needed to prepare consolidated financial statements for 20X2
4. If Bitner reports a net income of $90,000 for 20X2, what amount of income is assigned to the noncontrolling interest in the 20X2 consolidated income statement
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