Concept explainers
Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s
Which of the given companies S or P is parent company.
Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when parent holds more than 50 percent of shares of another entity.
Percentage of owner ship parent P holds in subsidiary S.
Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when parent holds more than 50 percent of shares of another entity.
Amount to be reported without consolidating entry when net income for 20X7 is $70,000.
a. Will income to non-controlling interest increase or decrease
Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when parent holds more than 50 percent of shares of another entity.
Increase or decrease in income to the non-controlling interest reported in 20X7 as a result of preceding consolidating entry
b. Elimination entry for consolidation worksheet
Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when parent holds more than 50 percent of shares of another entity.
Requirement 4
Preparation of elimination entry for consolidation worksheet on December 31 20X8.
Want to see the full answer?
Check out a sample textbook solution
Chapter 8 Solutions
ADV.FIN.ACCT.LL W/CONNECT+PROCTORIO PLUS
- Nicole Manufacturing had 780 units in beginning work in process on September 1, 2023. During the month, an additional 2,600 units were started in production. At the end of September, 1,150 units remained in work in process. How many units were completed during September? Helparrow_forwardFinancial Accountingarrow_forwardThe total ending wip cost amounts to?arrow_forward
- ABC Company has December unit sales of 12,000 units. Assuming a 5 percent growth, what is the projected unit sales? Solutionarrow_forwardDuring the current year, a business sells equipment for $440,000. The equipment cost $290,000 when purchased and placed in service two years ago and $85,000 of depreciation deductions were allowed. The results of the sale are ____. OPTIONS: A) ordinary income of $120,000. B) Sec. 1231 gain of $120,000. C) ordinary income of $90,000 and LTCL of $30,000. D) ordinary income of $85,000 and Sec. 1231 gain of $150,000.arrow_forwardDuring the current year, a business sells equipment for $440,000. The equipment cost $290,000 when purchased and placed in service two years ago and $85,000 of depreciation deductions were allowed. The results of the sale are ____. OPTIONS: A) ordinary income of $120,000. B) Sec. 1231 gain of $120,000. C) ordinary income of $90,000 and LTCL of $30,000. D) ordinary income of $85,000 and Sec. 1231 gain of $150,000.solve thisarrow_forward
- Madison Industries uses the FIFO (first-in, first-out) method in its process costing system. The mixing department had $4,800 in material cost in its beginning work in process inventory, and $68,000 in material cost was added during the period. The equivalent units of production for materials during the period were 17,000 units. What is the cost per equivalent unit for materials?arrow_forwardAt the end of the year, the company has Assets of $180,000 and Liabilities of $140,000. At the beginning of the year, the company had Owners' Equity of $60,000. How much did Owners' Equity change by the end of the year? Did Owners' Equity increase or decrease? HELParrow_forwardOn January 1, 2020, Acme Corporation leased equipment to Zenith Company. The lease term is 10 years. The first payment of $850,000 was made on January 1, 2020. The equipment cost Acme Corporation $6,250,000. The present value of the minimum lease payments is $7,150,000. The lease is appropriately classified as a sales-type lease. Assuming the interest rate for this lease is 8%, how much interest revenue will Acme record in 2021 on this lease? a. $500,000 b. $504,000 c. $572,000 d. $624,000arrow_forward
- How many units were completedarrow_forwardFor the fiscal year, sales were $8,300,000, sales discounts were $100,000, sales returns and allowances were $45,000, and the cost of merchandise sold was $5,000,000. What was the amount of net sales? Accurate Answerarrow_forwardXYZ Corporation reports the following amounts for the fiscal year: Account Amount Assets $9,800 Liabilities $3,500 Stockholders' equity $6,300 Dividends $800 Revenues $7,200 Expenses $4,900 What amount should be reported for net income?arrow_forward
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Financial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage Learning