1. S is an 80% owned subsidiary of P, Inc. P accounts for S using the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. S is an 80% owned subsidiary of P, Inc. P accounts for S using the equity method. The following facts apply: On January 2, 2021, S purchased a machine with a cost of $160,000 and accumulated depreciation of $60,000 from P for $120,000. The machine had a 5-year remaining life on January 2, 2021, and is being depreciated by the straight-line method. In 2024 P reported net income of $180,000 without including income from S. S reported net income of $100,000. Required: a. From the foregoing information, prepare the required consolidation entries for the 2024 consolidated worksheet in general journal form. For any debit or credit to retained earnings or to an income statement account, indicate whether it is the parent's or the subsidiary's retained earnings or income statement account. b. Determine the consolidated net income for 2024, along with the Noncontrolling Interest in income and the Controlling Interest in income. 2. This is independent of Problem 1. S is an 80% owned subsidiary of P, Inc. The following facts apply to 2024: ● . On January 1, 2024, S held $60,000 of merchandise sold to it from P. . P made sales to S during 2024 totaling $150,000. On December 31, 2024, S had $80,000 of such goods purchased from P in its ending inventory. Palways sells to Sat a 25% gross profit. In 2024 P reported net income of $500,000 without including income from S. S reported net income of $200,000. P accounts for S using the equity method. Required: a. From the foregoing information, prepare the required consolidation entries for the 2024 consolidated worksheet in general journal form. For any debit or credit to retained earnings or to an income statement account, indicate whether it is the parent's or the subsidiary's retained earnings or income statement account. b. Determine the consolidated net income for 2024, along with the Noncontrolling Interest in income and the Controlling Interest in income. 1. S is an 80% owned subsidiary of P, Inc. P accounts for S using the equity method. The following facts apply: On January 2, 2021, S purchased a machine with a cost of $160,000 and accumulated depreciation of $60,000 from P for $120,000. The machine had a 5-year remaining life on January 2, 2021, and is being depreciated by the straight-line method. In 2024 P reported net income of $180,000 without including income from S. S reported net income of $100,000. Required: a. From the foregoing information, prepare the required consolidation entries for the 2024 consolidated worksheet in general journal form. For any debit or credit to retained earnings or to an income statement account, indicate whether it is the parent's or the subsidiary's retained earnings or income statement account. b. Determine the consolidated net income for 2024, along with the Noncontrolling Interest in income and the Controlling Interest in income. 2. This is independent of Problem 1. S is an 80% owned subsidiary of P, Inc. The following facts apply to 2024: ● . On January 1, 2024, S held $60,000 of merchandise sold to it from P. . P made sales to S during 2024 totaling $150,000. On December 31, 2024, S had $80,000 of such goods purchased from P in its ending inventory. Palways sells to Sat a 25% gross profit. In 2024 P reported net income of $500,000 without including income from S. S reported net income of $200,000. P accounts for S using the equity method. Required: a. From the foregoing information, prepare the required consolidation entries for the 2024 consolidated worksheet in general journal form. For any debit or credit to retained earnings or to an income statement account, indicate whether it is the parent's or the subsidiary's retained earnings or income statement account. b. Determine the consolidated net income for 2024, along with the Noncontrolling Interest in income and the Controlling Interest in income.
Expert Answer:
Answer rating: 100% (QA)
1a Consolidation entries for 2024 consolidated worksheet in general journal form Dr Equity in Earnin... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-1934319307
2nd edition
Authors: Susan S. Hamlen, Ronald J. Huefner, James A. Largay III
Posted Date:
Students also viewed these accounting questions
-
3. A marketing report concerning personal computers states that 650,000 owners will buy modem (DSL let's make it fast) for their machines next year and 1,250,000 will buy at least one software...
-
The newest clerk in the accounting office recently entered trial balance data for the parent company and its subsidiaries in the companys consolidation program. After a few minutes of additional work...
-
1. The Jarmon Company manufactures and sells a line of exclusive sportswear. Prepare a financial position as at 31st December 2022 from the following information. Account Receivable Long term loan...
-
Describe an advantage and a disadvantage of the fact that monetary policy has so many different channels through which it can operate.
-
What is a principal objective of the auditors in analyzing a Maintenance and Repairs expense account?
-
Search the Internet including social media to obtain information on flying and passengers' airline preferences. Develop three double-barreled questions related to flying and passengers' airline...
-
Examine the following ï¬nancial statements, which are condensed versions of those of a federal agency responsible for collecting taxes and duties and transferring them to the Treasury. 1....
-
From HP company website, which part of retail mix had the most positive influence over you and why? . PLACE PRODUCT PHYSICAL or PROMOTION Explain why this facet of their strategy influenced you...
-
Pritano Company acquired all the net assets of Succo Company on December 31, 2018, for $2,160,000 cash. The balance sheet of Succo Company immediately prior to the acquisition showed: As part of the...
-
Create a C++ Program to output the ASCII Table it should look like this: ASCIIOut.txt If you print some char values weird things happen to thescreen. You may need to use the isprint(char )function;...
-
Rank the following types of radiation and types of particles in order of increasing spacing between bright fringes in their diffraction patterns: yellow light, blue light, electrons moving at a speed...
-
What are the main influencing factors of cost of capital in a firm? Explain, why a companys cost of capital is not independent of its supply chain partners.
-
Perpetrators of improper revenue recognition schemes often attempt to offer the defense that recognizing future periods revenue in the current period is only a timing error. Discuss whether the fact...
-
Xeroxs bundled sales were improperly recorded in its financial statements because: (a) All of the revenue streams for its leases should have been recorded over the life of the leases. (b) Some of the...
-
Explain how the German concept of Controlling differs from Anglo-Saxon management accounting.
-
An aqueous solution contains 0.498 M ammonia. Calculate the pH of the solution after the addition of 3.30x102 moles of hydrobromic acid to 155 mL of this solution. (Assume that the volume does not...
-
The following table shows the rates of total return in successive years from 2004 to 2008 for the Sprott Canadian Equity Fund and for the benchmark Toronto Stock Exchange S&P/TSX Composite Index. By...
-
Inventory Accounting General City's general fund reported a supplies inventory costing $1,000,000 at the beginning of the fiscal year. During the year, General City purchased materials and supplies...
-
The information below was taken from the records of Greenvale Community Day Care Center, a private not-for-profit organization, for the year 2013. The Center provides free day care to low-income...
-
Goodwill On February 15, 2010, Pendragon Corporation acquired all of the stock of Sherwood, Inc. for $300 million in cash. Sherwood's stockholders' equity accounts at the date of acquisition were as...
-
Suppose that in September 2013 a company takes a long position in a contract on May 2014 crude oil futures. It closes out its position in March 2014. The futures price (per barrel) is \($88.30\) when...
-
Explain how the control variate technique is implemented.
-
A company wishes to hedge its exposure to a new fuel whose price changes have a 0.6 correlation with gasoline futures price changes. The company will lose $1 million for each 1 cent increase in the...
Study smarter with the SolutionInn App