During 2010, Pier One Company billed its 80% owned subsidiary, Scale Company, $700,000 for architectural services. The
Question:
During 2010, Pier One Company billed its 80% owned subsidiary, Scale Company, $700,000 for architectural services. The cost to Pier One Company of providing the services was $400,000 for salaries and $150,000 for other operating expenses. Scale Company charged the architecture fees to the cost of a building that it opened on January 1, 2011. The building had an estimated useful life of 30 years.
Required:
Prepare in general journal form the workpaper entries relating to the intercompany fees that are necessary in the consolidated statements workpapers for the years ended December 31, 2010, 2011, and 2012.
Step by Step Answer:
20 10 Architectural Fees 700000 Salary Expense 400000 Other Expense 150000 Buil...View the full answer
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A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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