What inventory balance will be provided by the consolidated entity on December 31, 20x2? A. P15, 000 B. P16, 800 C. P24, 000 D. P39, 000
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Lorn Corporation purchased inventory from Dresser Corporation for P 120,000 on September 20, 20x2, and resold 80% of the purchased inventory to unaffiliated companies prior to December 31, 20x2, for P140,000. Dresser produced the inventory sold to Lorn for P75,000. Lorn owns 70% of Dresser’s voting common stock. The companies had no other transactions during 20x2.
What inventory balance will be provided by the consolidated entity on December 31, 20x2?
A. P15, 000
B. P16, 800
C. P24, 000
D. P39, 000
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- Lorn Corporation purchased inventory from Dresser Corporation for P120,000 on September 20, 20x2, and resold 80% of the purchased inventory to unaffiliated companies prior to December 31, 20x2, for P140,000. Dresser produced the inventory sold to Lorn for P75,000. Lorn owns 70% of Dresser’s voting common stock. The companies had no other transactions during 20x2. What inventory balance will be provided by the consolidated entity on December 31, 20x2? A. P15,000 C. P24, 000B. P16, 800 D. P39, 000Lorn Corporation purchased inventory from Dresser Corporation for P 120,000 on September 20, 20x2, and resold 80% of the purchased inventory to unaffiliated companies prior to December 31, 20x2, for P140,000. Dresser produced the inventory sold to Lorn for P75,000. Lorn owns 70% of Dresser’s voting common stock. The companies had no other transactions during 20x2. What amount of cost of goods sold will be reported in the 20x2 consolidated income statement? A. P60, 000 B. P75, 000 C. P96, 000 D. P120, 000 E. P171, 000Lorn Corporation purchased inventory from Dresser Corporation for P120,000 on September 20, 20x2, and resold 80% of the purchased inventory to unaffiliated companies prior to December 31, 20x2, for P140,000. Dresser produced the inventory sold to Lorn for P75,000. Lorn owns 70% of Dresser’s voting common stock. The companies had no other transactions during 20x2.What amount of sales will be reported in the 20x2 consolidated income statement? A. P98,000 C. P140, 000B. P120, 000 D. P260, 000
- Lorn Corporation purchased inventory from Dresser Corporation for P 120,000 on September 20, 20x2, and resold 80% of the purchased inventory to unaffiliated companies prior to December 31, 20x2, for P140,000. Dresser produced the inventory sold to Lorn for P75,000. Lorn owns 70% of Dresser’s voting common stock. The companies had no other transactionsduring 20x2. 1. What amount of sales will be reported in the 20x2 consolidated income statement? A. P98,000 C. P140, 000B. P120, 000 D. P260, 000 2. What amount of cost of goods sold will be reported in the 20x2 consolidated income statement? A. P60,000 C. P96, 000B. P75, 000 D. P120, 000 E. P171, 000 3. What amount of consolidated net income will be assigned to the controlling interest for 20x2? A. P20,000 D. P45, 000B. P30, 800 E. 69, 200C. P44, 000 F. 80, 000Lorn Corporation purchased inventory from Dresser Corporation for P120,000 on September 20, 20x2, and resold 80% of the purchased inventory to unaffiliated companies prior to December 31, 20x2, for P140,000. Dresser produced the inventory sold to Lorn for P75,000. Lorn owns 70% of Dresser’s voting common stock. The companies had no other transactions during 20x2. What amount of cost of goods sold will be reported in the 20x2 consolidated income statement? A. P60,000 C. P96, 000B. P75, 000 D. P120, 000 E. P171, 000Lorn Corporation purchased inventory from Dresser Corporation for P 120,000 on September 20, 20x2, and resold 80% of the purchased inventory to unaffiliated companies prior to December 31, 20x2, for P140,000. Dresser produced the inventory sold to Lorn for P75,000. Lorn owns 70% of Dresser’s voting common stock. The companies had no other transactions during 20x2 What amount of sales will be reported in the 20x2 consolidated income statement? A. P98, 000 B. P120, 000 C. P140, 000 D. P260, 000
- Lorn Corporation purchased inventory from Dresser Corporation for P 120,000 on September 20, 20x2, and resold 80% of thepurchased inventory to unaffiliated companies prior to December 31, 20x2, for P140,000. Dresser produced the inventorysold to Lorn for P75,000. Lorn owns 70% of Dresser’s voting common stock. The companies had no other transactionsduring 20x2.4. What inventory balance will be provided by the consolidated entity on December 31, 20x2? A. P15,000 C. P24, 000B. P16, 800 D. P39, 000Lorn Corporation purchased inventory from Dresser Corporation for P 120,000 on September 20, 20x2, and resold 80% of the purchased inventory to unaffiliated companies prior to December 31, 20x2, for P140,000. Dresser produced the inventory sold to Lorn for P75,000. Lorn owns 70% of Dresser’s voting common stock. The companies had no other transactions during 20x2. What amount of consolidated net income will be assigned to the controlling interest for 20x2? A. P20, 000 B. P30, 800 C. P44, 000 D. P45, 000 E. 69, 200 F. 80, 000Lorn Corporation purchased inventory from Dresser Corporation for P120,000 on September 20, 20x2, and resold 80% of the purchased inventory to unaffiliated companies prior to December 31, 20x2, for P140,000. Dresser produced the inventory sold to Lorn for P75,000. Lorn owns 70% of Dresser’s voting common stock. The companies had no other transactions during 20x2. What amount of consolidated net income will be assigned to the controlling interest for 20x2? A. P20,000 D. P45, 000B. P30, 800 E. 69, 200C. P44, 000 F. 80, 000
- On January 1, 20X1, Rivera Company (RC) and Caventa Company (CC) each acquired 40% of the ordinaryvoting shares of Tulang Company (TC) for P500,000. They then both agreed to share control of TC.In 20X1, RC purchased goods from TC for P150,000. On December 31, 20X1, P80,000 of the goods purchasedremains in TC’s inventory. TC sells goods at 25% mark-up based on the sale.For the year ended December 31, 20X1, TC reported a profit of P400,000 and declared and paid dividends ofP150,0000. Also, the fair value of each venturer’s investment in TC is P600,000. There is no published quotationfor TC.RC and CC account for jointly controlled entities using the equity method.Required: Determine the following:1. The amount of income RC should recognize from TC.2. The value of RC’s investment in TC at December 31, 20X1.3. The amount of income CC should recognize from TC.4. The value of CC’s investment in TC at December 31, 20X1.During 20x9, PP Corporation recorded sales of inventory costing P500,0000 to SS Company, its wholly owned subsidiary, on the same terms as sales made to third parties. At December 31,20x9, SS held one-fifth of this goods inventory. The following information pertains to PP and SS’s sales for 20x9: (see image below) In its 20x9 consolidated income statement, what amount should PP report as cost of sales?Planet Corporation acquired 90 percent of Saturn Company’s voting shares of stock in 20X1. During 20X4, Planet purchased 44,000 Playday doghouses for $33 each and sold 29,000 of them to Saturn for $39 each. Saturn sold all of the doghouses to retail establishments prior to December 31, 20X4, for $54 each. Both companies use perpetual inventory systems. Required: Prepare the journal entries Planet recorded for the purchase of inventory and resale to Saturn Company in 20X4. Prepare the journal entries Saturn recorded for the purchase of inventory and resale to retail establishments in 20X4. Prepare the worksheet consolidation entry(ies) needed in preparing consolidated financial statements for 20X4 to remove all effects of the intercompany sale.