Selected accounts from the year-to-date financial statements for Nowak Company and its wholly owned subsidiary, Shawinigan...

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Selected accounts from the year-to-date financial statements for Nowak Company and its wholly owned subsidiary, Shawinigan Ltd., were as follows: Nowak Cash $ 570 Shawinigan $ 180 $ Consolidated 750 Inventory 750 Deferred income tax asset 210 1,740 90 2,310 372 Sales 9,100 5,200 13,700 Cost of sales Income tax expense 6,370 910 4,000 450 8,800 1,340 Additional Information The above statements include the only intercompany transaction this year which was a cash sale of $600 by Nowak to Shawinigan at its regular margin of 30% of sales and accrued income tax at its tax rate of 40%. Today, Shawinigan sold $400 of the inventory it had purchased from Nowak to an arm's length party at its regular markup of 30% over cost and accrued income tax at its tax rate of 40%. Required: Determine the account balance for each account on the three financial statements after the new transaction is recorded. (Input all amounts as positive values. Omit $ sign in your response.) Cash Inventory Deferred income tax asset Sales Cost of sales Income tax expense Nowak Shawinigan Consolidated $ $ $ Selected accounts from the year-to-date financial statements for Nowak Company and its wholly owned subsidiary, Shawinigan Ltd., were as follows: Nowak Cash $ 570 Shawinigan $ 180 $ Consolidated 750 Inventory 750 Deferred income tax asset 210 1,740 90 2,310 372 Sales 9,100 5,200 13,700 Cost of sales Income tax expense 6,370 910 4,000 450 8,800 1,340 Additional Information The above statements include the only intercompany transaction this year which was a cash sale of $600 by Nowak to Shawinigan at its regular margin of 30% of sales and accrued income tax at its tax rate of 40%. Today, Shawinigan sold $400 of the inventory it had purchased from Nowak to an arm's length party at its regular markup of 30% over cost and accrued income tax at its tax rate of 40%. Required: Determine the account balance for each account on the three financial statements after the new transaction is recorded. (Input all amounts as positive values. Omit $ sign in your response.) Cash Inventory Deferred income tax asset Sales Cost of sales Income tax expense Nowak Shawinigan Consolidated $ $ $

Answer rating: 100% (QA)

To determine the account balances after the new transaction is recorded lets analyze the effects of the transaction on each account 1 Cash Nowak The cash sale from Nowak to Shawinigan was 600 Since th... View the full answer