On January 2, 2021, Penn Company purchased 80% of the outstanding common shares of Senn Company....
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On January 2, 2021, Penn Company purchased 80% of the outstanding common shares of Senn Company. During 2021, Penn Company sold merchandise that cost $2,700 to Senn Company for $3,600. Senn Co. sold all but $600 of this merchandise to its customers for $3,700 on account. Senn Co. reported net income of $3,000 and Planet reported separate operating income (excluding income from Senn Co.) of $5,000 during 2021 Q1. Prepare eliminating (consolidation) entries for intercompany transactions on December 31, 2021. Account Debit Credit Sales revenue COGS Inventory Q2. What is the consolidated net income? Answer: Q3. Answer: what is the net income attributable to NCI (NCI in NI)? Q4. What is the Net Income attributable to Controlling Interest (Controlling Interest Net Income)? Answer: Q5. Bases on the information above, please complete the following worksheet. Consolidation Entries Penn Co. Senn Co. DR CR Consolidated Income Statement Sales 35,000 10,000 (6,000) (1,000) Less: COGS (22,500) Othr expenses (7,500) Income from Senn Co. Consolidated Net Income 5,000 3,000 8,000 NCI in Net Income Controlling Interest in Net Income 5,000 3,000 8,000 Balance sheet Inventory 7,000 5,000 12,000 On January 2, 2021, Penn Company purchased 80% of the outstanding common shares of Senn Company. During 2021, Penn Company sold merchandise that cost $2,700 to Senn Company for $3,600. Senn Co. sold all but $600 of this merchandise to its customers for $3,700 on account. Senn Co. reported net income of $3,000 and Planet reported separate operating income (excluding income from Senn Co.) of $5,000 during 2021 Q1. Prepare eliminating (consolidation) entries for intercompany transactions on December 31, 2021. Account Debit Credit Sales revenue COGS Inventory Q2. What is the consolidated net income? Answer: Q3. Answer: what is the net income attributable to NCI (NCI in NI)? Q4. What is the Net Income attributable to Controlling Interest (Controlling Interest Net Income)? Answer: Q5. Bases on the information above, please complete the following worksheet. Consolidation Entries Penn Co. Senn Co. DR CR Consolidated Income Statement Sales 35,000 10,000 (6,000) (1,000) Less: COGS (22,500) Othr expenses (7,500) Income from Senn Co. Consolidated Net Income 5,000 3,000 8,000 NCI in Net Income Controlling Interest in Net Income 5,000 3,000 8,000 Balance sheet Inventory 7,000 5,000 12,000
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Related Book For
Accounting Principles Volume 2
ISBN: 978-1119502555
8th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
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