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Consolidated financial statements:Financial statements of both parent and subsidiary are combined to prepare a single set of books. The consolidation process starts with the data recorded on the books of individual consolidating companies. The accounting book of individual companies are placed in a third party work sheet, and entries are made eliminating intercompany transactions between them.
Consolidated
A consolidated balance sheet presents assets and liabilities of parent and subsidiary company on as single document, with no distinctions on which item belong to which company.
Requirement 1
Preparation of consolidated balance sheet worksheet as on 31 December 20X6.
b
Consolidated financial statements:Financial statements of both parent and subsidiary are combined to prepare a single set of books. The consolidation process starts with the data recorded on the books of individual consolidating companies. The accounting book of individual companies are placed in a third party work sheet, and entries are made eliminating intercompany transactions between them.
Consolidated balance sheet:
A consolidated balance sheet presents assets and liabilities of parent and subsidiary company on as single document, with no distinctions on which item belong to which company.
Requirement 2
Preparation of consolidated balance sheet of L and Subsidiary company.
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Chapter 7 Solutions
ADVANCED FINANCIAL ACCOUNTING IA
- Florida Kitchens produces high-end cooking ranges. The costs to manufacture and market the ranges at the company’s volume of 3,000 units per quarter are shown in the following table: Unit manufacturing costs Variable costs $ 1,440 Fixed overhead 720 Total unit manufacturing costs $ 2,160 Unit nonmanufacturing costs Variable 360 Fixed 840 Total unit nonmanufacturing costs 1,200 Total unit costs $ 3,360 The company has the capacity to produce 3,000 units per quarter and always operates at full capacity. The ranges sell for $4,000 per unit. Required: a. Florida Kitchens receives a proposal from an outside contractor, Burns Electric, who will manufacture 1,200 of the 3,000 ranges per quarter and ship them directly to Florida’s customers as orders are received from the sales office at Florida. Florida would provide the materials for the ranges, but Burns would assemble, box, and ship the ranges. The variable manufacturing costs would be…arrow_forwardCan you please solve this general accounting problem?arrow_forwardCompute the return on total assets of this financial accounting questionarrow_forward
