Question: At the end of 20X7 the condensed statements of financial

At the end of 20X7, the condensed statements of financial position and statements of comprehensive income of Office Plus Corporation and Plus Limited were as they appear below. Intercompany activities were as follows:
1. Plus sold all of its opening (i. e., December 31, 20X6) inventory including that acquired from Office Plus (see P4- 1).
2. Plus purchased merchandise from Office Plus for $ 400,000. This price included a 25% markup over the cost to Office Plus. At year- end, 40% of these goods were still in Plus’s inventory.
3. Plus sold to Office Plus some merchandise for $ 120,000. Plus had acquired the merchandise for $ 100,000. The merchandise was all in Office Plus’s inventory at year- end, but is expected to sell for $ 150,000 in 20X8.
4. Plus fully repaid Office Plus the $ 80,000 loan that had been outstanding at the beginning of the year, plus $ 7,000 in interest ($ 2,000 of the interest pertained to 20X6).
5. Office Plus purchased a plot of land in Calgary for $ 100,000 and resold it to plus for $ 140,000.

Prepare a consolidated statement of income and retained earnings and a consolidated SFP for Office Plus Corporation for20X7.

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  • CreatedMarch 13, 2015
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