Intercompany sales: An intercompany sale normally is recorded on the books of the selling affiliated in the same manner as any other sales, including recording of profit or loss. The unrealized profit on intercompany sales is omitted under the modified equity method. Requirement 1 Consolidation entries needed to eliminate the effects of the intercompany sales of building.

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Answer 1

Question

Chapter 7, Problem 7.17E

To determine

Intercompany sales:An intercompany sale normally is recorded on the books of the selling affiliated in the same manner as any other sales, including recording of profit or loss. The unrealized profit on intercompany sales is omitted under the modified equity method.

Requirement 1

Consolidation entries needed to eliminate the effects of the intercompany sales of building.

b.

To determine

Intercompany sales:An intercompany sale normally is recorded on the books of the selling affiliated in the same manner as any other sales, including recording of profit or loss. The unrealized profit on intercompany sales is omitted under the modified equity method.

Requirement 2

Computation of amount reported to consolidated net income and income to be allocated to controlling interest.

c.

To determine

Intercompany sales:An intercompany sale normally is recorded on the books of the selling affiliated in the same manner as any other sales, including recording of profit or loss. The unrealized profit on intercompany sales is omitted under the modified equity method.

Requirement 3

Consolidation entry needed to eliminate effect of intercompany sale of building in preparing consolidated financial statement for the year 20X8.

d.

To determine

Intercompany sales:An intercompany sale normally is recorded on the books of the selling affiliated in the same manner as any other sales, including recording of profit or loss. The unrealized profit on intercompany sales is omitted under the modified equity method.

Requirement 2

Computation of consolidated net income and amount of income assigned to controlling shareholder in consolidated income statement 20X7.

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On November 1, 2015, Wrens Mirth sold merchandise with a cost of $5,000 for $10,000, FOB destination, with payment terms of 3/10, n/40, Wrens paid transportation costs of $100. Of these, merchandise sold for $3,000 (with a cost of $1,500) was returned on November 6. The company received the payment for the balance amount on November 10, 2015. Calculate the Net sales revenue. a. $6,790 b. $4,790 c. $5,790 d. $7,800

I need assistance with this general accounting question using appropriate principles.

I want the correct answer with general accounting

Answer 2

Question

Chapter 7, Problem 7.17E

To determine

Intercompany sales:An intercompany sale normally is recorded on the books of the selling affiliated in the same manner as any other sales, including recording of profit or loss. The unrealized profit on intercompany sales is omitted under the modified equity method.

Requirement 1

Consolidation entries needed to eliminate the effects of the intercompany sales of building.

b.

To determine

Intercompany sales:An intercompany sale normally is recorded on the books of the selling affiliated in the same manner as any other sales, including recording of profit or loss. The unrealized profit on intercompany sales is omitted under the modified equity method.

Requirement 2

Computation of amount reported to consolidated net income and income to be allocated to controlling interest.

c.

To determine

Intercompany sales:An intercompany sale normally is recorded on the books of the selling affiliated in the same manner as any other sales, including recording of profit or loss. The unrealized profit on intercompany sales is omitted under the modified equity method.

Requirement 3

Consolidation entry needed to eliminate effect of intercompany sale of building in preparing consolidated financial statement for the year 20X8.

d.

To determine

Intercompany sales:An intercompany sale normally is recorded on the books of the selling affiliated in the same manner as any other sales, including recording of profit or loss. The unrealized profit on intercompany sales is omitted under the modified equity method.

Requirement 2

Computation of consolidated net income and amount of income assigned to controlling shareholder in consolidated income statement 20X7.

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Answer 3

Question

Chapter 7, Problem 7.17E

To determine

Intercompany sales:An intercompany sale normally is recorded on the books of the selling affiliated in the same manner as any other sales, including recording of profit or loss. The unrealized profit on intercompany sales is omitted under the modified equity method.

Requirement 1

Consolidation entries needed to eliminate the effects of the intercompany sales of building.

b.

To determine

Intercompany sales:An intercompany sale normally is recorded on the books of the selling affiliated in the same manner as any other sales, including recording of profit or loss. The unrealized profit on intercompany sales is omitted under the modified equity method.

Requirement 2

Computation of amount reported to consolidated net income and income to be allocated to controlling interest.

c.

To determine

Intercompany sales:An intercompany sale normally is recorded on the books of the selling affiliated in the same manner as any other sales, including recording of profit or loss. The unrealized profit on intercompany sales is omitted under the modified equity method.

Requirement 3

Consolidation entry needed to eliminate effect of intercompany sale of building in preparing consolidated financial statement for the year 20X8.

d.

To determine

Intercompany sales:An intercompany sale normally is recorded on the books of the selling affiliated in the same manner as any other sales, including recording of profit or loss. The unrealized profit on intercompany sales is omitted under the modified equity method.

Requirement 2

Computation of consolidated net income and amount of income assigned to controlling shareholder in consolidated income statement 20X7.

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Answer 4

Question

Chapter 7, Problem 7.17E

To determine

Intercompany sales:An intercompany sale normally is recorded on the books of the selling affiliated in the same manner as any other sales, including recording of profit or loss. The unrealized profit on intercompany sales is omitted under the modified equity method.

Requirement 1

Consolidation entries needed to eliminate the effects of the intercompany sales of building.

b.

To determine

Intercompany sales:An intercompany sale normally is recorded on the books of the selling affiliated in the same manner as any other sales, including recording of profit or loss. The unrealized profit on intercompany sales is omitted under the modified equity method.

Requirement 2

Computation of amount reported to consolidated net income and income to be allocated to controlling interest.

c.

To determine

Intercompany sales:An intercompany sale normally is recorded on the books of the selling affiliated in the same manner as any other sales, including recording of profit or loss. The unrealized profit on intercompany sales is omitted under the modified equity method.

Requirement 3

Consolidation entry needed to eliminate effect of intercompany sale of building in preparing consolidated financial statement for the year 20X8.

d.

To determine

Intercompany sales:An intercompany sale normally is recorded on the books of the selling affiliated in the same manner as any other sales, including recording of profit or loss. The unrealized profit on intercompany sales is omitted under the modified equity method.

Requirement 2

Computation of consolidated net income and amount of income assigned to controlling shareholder in consolidated income statement 20X7.

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Answer 5

Chapter 7, Problem 7.17E

To determine

Intercompany sales:An intercompany sale normally is recorded on the books of the selling affiliated in the same manner as any other sales, including recording of profit or loss. The unrealized profit on intercompany sales is omitted under the modified equity method.

Requirement 1

Consolidation entries needed to eliminate the effects of the intercompany sales of building.

b.

To determine

Intercompany sales:An intercompany sale normally is recorded on the books of the selling affiliated in the same manner as any other sales, including recording of profit or loss. The unrealized profit on intercompany sales is omitted under the modified equity method.

Requirement 2

Computation of amount reported to consolidated net income and income to be allocated to controlling interest.

c.

To determine

Intercompany sales:An intercompany sale normally is recorded on the books of the selling affiliated in the same manner as any other sales, including recording of profit or loss. The unrealized profit on intercompany sales is omitted under the modified equity method.

Requirement 3

Consolidation entry needed to eliminate effect of intercompany sale of building in preparing consolidated financial statement for the year 20X8.

d.

To determine

Intercompany sales:An intercompany sale normally is recorded on the books of the selling affiliated in the same manner as any other sales, including recording of profit or loss. The unrealized profit on intercompany sales is omitted under the modified equity method.

Requirement 2

Computation of consolidated net income and amount of income assigned to controlling shareholder in consolidated income statement 20X7.

Answer 6

Chapter 7, Problem 7.17E

To determine

Intercompany sales:An intercompany sale normally is recorded on the books of the selling affiliated in the same manner as any other sales, including recording of profit or loss. The unrealized profit on intercompany sales is omitted under the modified equity method.

Requirement 1

Consolidation entries needed to eliminate the effects of the intercompany sales of building.

Answer 7

Chapter 7, Problem 7.17E

To determine

Intercompany sales:An intercompany sale normally is recorded on the books of the selling affiliated in the same manner as any other sales, including recording of profit or loss. The unrealized profit on intercompany sales is omitted under the modified equity method.

Requirement 1

Consolidation entries needed to eliminate the effects of the intercompany sales of building.

Answer 8

b.

To determine

Intercompany sales:An intercompany sale normally is recorded on the books of the selling affiliated in the same manner as any other sales, including recording of profit or loss. The unrealized profit on intercompany sales is omitted under the modified equity method.

Requirement 2

Computation of amount reported to consolidated net income and income to be allocated to controlling interest.

Answer 9

b.

To determine

Intercompany sales:An intercompany sale normally is recorded on the books of the selling affiliated in the same manner as any other sales, including recording of profit or loss. The unrealized profit on intercompany sales is omitted under the modified equity method.

Requirement 2

Computation of amount reported to consolidated net income and income to be allocated to controlling interest.

Answer 10

c.

To determine

Intercompany sales:An intercompany sale normally is recorded on the books of the selling affiliated in the same manner as any other sales, including recording of profit or loss. The unrealized profit on intercompany sales is omitted under the modified equity method.

Requirement 3

Consolidation entry needed to eliminate effect of intercompany sale of building in preparing consolidated financial statement for the year 20X8.

Answer 11

c.

To determine

Intercompany sales:An intercompany sale normally is recorded on the books of the selling affiliated in the same manner as any other sales, including recording of profit or loss. The unrealized profit on intercompany sales is omitted under the modified equity method.

Requirement 3

Consolidation entry needed to eliminate effect of intercompany sale of building in preparing consolidated financial statement for the year 20X8.

Answer 12

d.

To determine

Intercompany sales:An intercompany sale normally is recorded on the books of the selling affiliated in the same manner as any other sales, including recording of profit or loss. The unrealized profit on intercompany sales is omitted under the modified equity method.

Requirement 2

Computation of consolidated net income and amount of income assigned to controlling shareholder in consolidated income statement 20X7.

Answer 13

d.

To determine

Intercompany sales:An intercompany sale normally is recorded on the books of the selling affiliated in the same manner as any other sales, including recording of profit or loss. The unrealized profit on intercompany sales is omitted under the modified equity method.

Requirement 2

Computation of consolidated net income and amount of income assigned to controlling shareholder in consolidated income statement 20X7.

Answer 14

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Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 7 - Prob. 7.1Q Ch. 7 - Prob. 7.2Q Ch. 7 - Prob. 7.3Q Ch. 7 - Prob. 7.4Q Ch. 7 - Prob. 7.5Q Ch. 7 - Prob. 7.6Q Ch. 7 - Prob. 7.7Q Ch. 7 - Prob. 7.8Q Ch. 7 - Prob. 7.9Q Ch. 7 - Prob. 7.10Q

Solution Summary: The author explains that intercompany sales are recorded on the books of the selling affiliated in the same manner as any other sales, including recording of profit or loss.

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Chapter 7 Solutions