Paragraph Corporation purchased land on January 1, 20X1, for $ 20,000. On June 10, 20X4, it...

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Paragraph Corporation purchased land on January 1, 20X1, for $ 20,000. On June 10, 20X4, it sold the land to its subsidiary, Sentence Corporation, for $30,000. Paragraph owns 60 percent of Sentence's voting shares. Required: a. Prepare the worksheet consolidation entries needed to remove the effects of the intercompany sale of land in preparing the consolidated financial statements for 20X4 and 20X5. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. view transaction list A Record the consolidating entry on December 31, 20X4. B Record the consolidating entry on December 31, 20X5. Note: =journal entry has been entered Record entry X Credit Clear entry view consolidation entries > b. Prepare the worksheet consolidation entries needed on December 31, 20X4 and 20X5, if Sentence had initially purchased the land for $20,000 and then sold it to Paragraph on June 10, 20X4, for $ 30,000. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. view transaction list A Record the consolidating entry on December 31, 20X4. B Record the consolidating entry on December 31, 20X5. Paragraph Corporation purchased land on January 1, 20X1, for $ 20,000. On June 10, 20X4, it sold the land to its subsidiary, Sentence Corporation, for $30,000. Paragraph owns 60 percent of Sentence's voting shares. Required: a. Prepare the worksheet consolidation entries needed to remove the effects of the intercompany sale of land in preparing the consolidated financial statements for 20X4 and 20X5. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. view transaction list A Record the consolidating entry on December 31, 20X4. B Record the consolidating entry on December 31, 20X5. Note: =journal entry has been entered Record entry X Credit Clear entry view consolidation entries > b. Prepare the worksheet consolidation entries needed on December 31, 20X4 and 20X5, if Sentence had initially purchased the land for $20,000 and then sold it to Paragraph on June 10, 20X4, for $ 30,000. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. view transaction list A Record the consolidating entry on December 31, 20X4. B Record the consolidating entry on December 31, 20X5.

Answer rating: 100% (QA)

Consolidation Entries for Paragraph Corporation Scenario a Paragraph sells land to Sentence 60 owned ... View the full answer