Sweeny Corporation owns 60 percent 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: What amount of intercorporate sales occurred in 20X2? How much unrealized intercompany profit existed on January 1, 20X2? On December 31, 20X2? Give the worksheet consolidation entries relating to inventory and cost of goods sold needed to prepare consolidated financial statements for 20X2.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Sweeny Corporation owns 60 percent 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:

What amount of intercorporate sales occurred in 20X2?

How much unrealized intercompany profit existed on January 1, 20X2? On December 31, 20X2?

Give the worksheet consolidation entries relating to inventory and cost of goods sold needed to prepare consolidated financial statements for 20X2.

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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