I want to correct answer accounting Webb Co. acquired 100% of Rand Inc. on January 5, 2018. During2018, Webb sold goods to Rand for $2,400,000 that cost Webb$1,800,000. Rand still owned 40% of the goods at the end of theyear. Cost of goods sold was $10,800,000 for Webb and$6,400,000 for Rand. What was consolidated cost of goods sold?a. $17,200,000.b. $15,160,000.c. $14,800,000.d. $15,400,000.e. $14,560,000.

Step 1: Define Cost Of Goods SoldThe cost of goods sold means the cost of the products which are…

Answered: Webb Co. acquired 100% of Rand Inc. on…

Principles of Accounting Volume 2

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Chapter12: Balanced Scorecard And Other Performance Measures

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Pepper bought 70% of Salt on 1 July 2016. The following are the statements of profit or loss of Pepper and Salt for the year ended 31 March 2017. Pepper Salt GHS’000 GHS’000 Revenue 31,200 10,400 Cost of sales (17,800) (5,600) Gross profit 13,400 4,800 Operating expenses (8,500) (3,200) Profit from operations 4,900 1,600 Investment income 2,000 Profit before tax 6,900 1,600 Tax…
12. RS Inc. sold a total of $23,000 of its products. As of the end of the year, a total of $9,600 of these sales had still not yet been collected. The original cost of products sold was $8,100. n Transactio Transactio Cash Asset + n Noncash Assets Cash Asset + Balance Sheet Noncash Assets = II Liabil- ities Balance Sheet = 13. On December 13, 2020, RS Inc. signed a contract with the organizer of the International Fair for Electronic Consumer Products for 100 units of RS's smaller spray cans, which are intended to be given away to visitors of the trade show. The selling price specified in the contract is $5 per unit. RS Inc. promised to deliver the units on March 10, 2021. IFECP has up to 30 days after delivery to pay for the spray cans. II Contrib. Capital Liabil- ities + Contrib. Capital Earned Rev- Capital enues + Income Statement Earned Rev- Capital enues Expen ses Expen = ses II Income Statement Net Incom e Net = Incom e II
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Paige, Inc. owns 80% of Sigler, Inc. During 2011, Paige sold goods with a 40% gross profit to Sigler. Sigler sold all of these goods in 2011. For the 2011 consolidated financial statements, how should the summation of Paige and Sigler income statement items be adjusted? a. Sales and cost of goods sold should be reduced by the intercompany sales. b. Sales and cost of goods sold should be reduced by 80% of the intercompany sales. c. Net income should be reduced by 80% of the gross profit on intercompany sales. d. No adjustment is necessary.
Cayman Inc. bought 25% of Maya Company on January 1, 2022 for $800,000. The equity method of accounting was used. The book value and fair value of the net assets of Maya on that date were $2,100,000. Maya began supplying inventory to Cayman as follows: Year Cost to Maya Transfer Price Amount Held by Cayman at Year-End 2022$ 30,000 $ 45,000 $ 8,400 2023$ 48,000 $ 80,000 $ 20,000 Maya reported net income of $100,000 in 2022 and $120,000 in 2023 while paying $40,000 in dividends each year. What is equity in Maya income that should be recognized by Cayman in 2023? O $25,000 Ob $28,700 O $2,000 Od $31,300 e$30,000
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