Consolidation: Consolidation is the process of accounting where books of parent company is reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation. Amount to be reported by P in its income statement as income from its investments in S if P used equity-method of accounting.

Question

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Answer 1

Question

Chapter 3, Problem 3.15E

a.

To determine

Concept Introduction:

Consolidation: Consolidation is the process of accounting where books of parent company is reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

Amount to be reported by P in its income statement as income from its investments in S if P used equity-method of accounting.

b.

To determine

Concept Introduction:

Consolidation: Consolidation is the process of accounting where books of parent company is reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

Amount to be assigned to non-controlling interest in the consolidated income statement for 20X4.

c.

To determine

Concept Introduction:

Consolidation: Consolidation is the process of accounting where books of parent company is reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

Amount to be reported by P as net consolidated income for 20X4.

d.

To determine

Concept Introduction:

Consolidation: Consolidation is the process of accounting where books of parent company is reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Explain: The reason for Pto not report the consolidated net income of $79,000 ($59,000+$20,000) .

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Jasper Inc. has the following financial information: • Annual Sales: $5,400,000 . Cost of Goods Sold: $2,100,000 •. Average Inventory: $1,260,000 . Average Accounts Receivable: $810,000 All sales are on credit. What is the firm's operating cycle?

Answer 2

Question

Chapter 3, Problem 3.15E

a.

To determine

Concept Introduction:

Consolidation: Consolidation is the process of accounting where books of parent company is reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

Amount to be reported by P in its income statement as income from its investments in S if P used equity-method of accounting.

b.

To determine

Concept Introduction:

Consolidation: Consolidation is the process of accounting where books of parent company is reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

Amount to be assigned to non-controlling interest in the consolidated income statement for 20X4.

c.

To determine

Concept Introduction:

Consolidation: Consolidation is the process of accounting where books of parent company is reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

Amount to be reported by P as net consolidated income for 20X4.

d.

To determine

Concept Introduction:

Consolidation: Consolidation is the process of accounting where books of parent company is reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Explain: The reason for Pto not report the consolidated net income of $79,000 ($59,000+$20,000) .

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Answer 3

Question

Chapter 3, Problem 3.15E

a.

To determine

Concept Introduction:

Consolidation: Consolidation is the process of accounting where books of parent company is reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

Amount to be reported by P in its income statement as income from its investments in S if P used equity-method of accounting.

b.

To determine

Concept Introduction:

Consolidation: Consolidation is the process of accounting where books of parent company is reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

Amount to be assigned to non-controlling interest in the consolidated income statement for 20X4.

c.

To determine

Concept Introduction:

Consolidation: Consolidation is the process of accounting where books of parent company is reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

Amount to be reported by P as net consolidated income for 20X4.

d.

To determine

Concept Introduction:

Consolidation: Consolidation is the process of accounting where books of parent company is reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Explain: The reason for Pto not report the consolidated net income of $79,000 ($59,000+$20,000) .

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Answer 4

Question

Chapter 3, Problem 3.15E

a.

To determine

Concept Introduction:

Consolidation: Consolidation is the process of accounting where books of parent company is reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

Amount to be reported by P in its income statement as income from its investments in S if P used equity-method of accounting.

b.

To determine

Concept Introduction:

Consolidation: Consolidation is the process of accounting where books of parent company is reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

Amount to be assigned to non-controlling interest in the consolidated income statement for 20X4.

c.

To determine

Concept Introduction:

Consolidation: Consolidation is the process of accounting where books of parent company is reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

Amount to be reported by P as net consolidated income for 20X4.

d.

To determine

Concept Introduction:

Consolidation: Consolidation is the process of accounting where books of parent company is reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Explain: The reason for Pto not report the consolidated net income of $79,000 ($59,000+$20,000) .

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Answer 5

Chapter 3, Problem 3.15E

a.

To determine

Concept Introduction:

Consolidation: Consolidation is the process of accounting where books of parent company is reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

Amount to be reported by P in its income statement as income from its investments in S if P used equity-method of accounting.

b.

To determine

Concept Introduction:

Consolidation: Consolidation is the process of accounting where books of parent company is reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

Amount to be assigned to non-controlling interest in the consolidated income statement for 20X4.

c.

To determine

Concept Introduction:

Consolidation: Consolidation is the process of accounting where books of parent company is reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

Amount to be reported by P as net consolidated income for 20X4.

d.

To determine

Concept Introduction:

Consolidation: Consolidation is the process of accounting where books of parent company is reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Explain: The reason for Pto not report the consolidated net income of $79,000 ($59,000+$20,000) .

Answer 6

Chapter 3, Problem 3.15E

a.

To determine

Concept Introduction:

Consolidation: Consolidation is the process of accounting where books of parent company is reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

Amount to be reported by P in its income statement as income from its investments in S if P used equity-method of accounting.

Answer 7

Chapter 3, Problem 3.15E

a.

To determine

Concept Introduction:

Consolidation: Consolidation is the process of accounting where books of parent company is reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

Amount to be reported by P in its income statement as income from its investments in S if P used equity-method of accounting.

Answer 8

b.

To determine

Concept Introduction:

Consolidation: Consolidation is the process of accounting where books of parent company is reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

Amount to be assigned to non-controlling interest in the consolidated income statement for 20X4.

Answer 9

b.

To determine

Concept Introduction:

Consolidation: Consolidation is the process of accounting where books of parent company is reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

Amount to be assigned to non-controlling interest in the consolidated income statement for 20X4.

Answer 10

c.

To determine

Concept Introduction:

Consolidation: Consolidation is the process of accounting where books of parent company is reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

Amount to be reported by P as net consolidated income for 20X4.

Answer 11

c.

To determine

Concept Introduction:

Consolidation: Consolidation is the process of accounting where books of parent company is reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

Amount to be reported by P as net consolidated income for 20X4.

Answer 12

d.

To determine

Concept Introduction:

Consolidation: Consolidation is the process of accounting where books of parent company is reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Explain: The reason for Pto not report the consolidated net income of $79,000 ($59,000+$20,000) .

Answer 13

d.

To determine

Concept Introduction:

Consolidation: Consolidation is the process of accounting where books of parent company is reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Explain: The reason for Pto not report the consolidated net income of $79,000 ($59,000+$20,000) .

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 3 - What is the basic idea underlying the preparation...Ch. 3 - How might consolidated statements help an investor...Ch. 3 - Prob. 3.3Q Ch. 3 - Prob. 3.4Q Ch. 3 - Prob. 3.5Q Ch. 3 - Prob. 3.6Q Ch. 3 - Prob. 3.7Q Ch. 3 - Prob. 3.8Q Ch. 3 - Prob. 3.9Q Ch. 3 - Prob. 3.10Q

Solution Summary: The author explains that P should not report the consolidated net income of 79,000 (59,000+20,000) as Pdoes not use equity-method of accounting.

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Chapter 3 Solutions