
Concept explainers
(a)
Introduction: The cost of goods sold refers to the cost of acquisition or manufacturing of goods that a company sells during a particular period. The cost of goods sold includes the cost of materials and labor used in the manufacturing and other associated costs.
The cost of goods to be reported in the consolidated financial statements in 20X9
(b)
Introduction: Inventory refers to the goods that a business holds with the ultimate goal of resale. It includes only the finished goods or unfinished goods to be ultimately used in the production process. It is classified as a current asset in the
Inventory balance to be reported in the consolidated balance sheet
(c)
Introduction: A non-controlling interest refers to an ownership position in which the shareholders hold less than 50 percent of the total shares in the company and have no control over its decisions.
The amount to be reported in the consolidated income statement as income assigned to non-controlling interest
(d)
Introduction: A non-controlling interest refers to an ownership position in which the shareholders hold less than 50 percent of the total shares in the company and have no control over its decisions.
The amount to be reported in the consolidated balance sheet as income assigned to non-controlling interest.
(e)
Introduction:
The amount of retained earnings to be reported in the consolidated balance sheet.
(f)
Introduction:
Consolidation entries required to prepare three-part consolidated worksheet at December 31, 20X9.
(h)
Introduction: A consolidated worksheet is used to prepare the consolidated financial statements of the parent company and its subsidiary. It reflects the individual values of the parent and the subsidiary and then one consolidated figure for both the entities.
Three part consolidation work paper for 20X9

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Chapter 6 Solutions
Advanced Financial Accounting
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