The effect of unrealized profits and losses on sales between affiliated companies is eliminated in preparing consolidated

Question:

The effect of unrealized profits and losses on sales between affiliated companies is eliminated in preparing consolidated financial statements. When are profits and losses on such sales realized for consolidated statement purposes?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Advanced Accounting

ISBN: 9780132568968

11th Edition

Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith

See More Books

Question Posted: Oct 17, 2011 05:01 AM

See More Questions

Beaudry and Clemente share profits and losses on a fractional- share basis with two- fifths for Beaudry and three-fifths for Clemente. This year the firm has a net income of $ 65,000. The beginning...
Is the effect of unrealized profit on consolidated cost of goods sold influenced by (a) The existence of a noncontrolling interest and (b) The direction of intercompany sales?
In preparing its consolidated financial statements at December 31, 20X7, the following elimination entries were included in the consolidation worksheet of Master Corporation: Master owns 60 percent...
Which statement about the pass-by-reference is NOT true? a.Every time you pass a reference variable to a method, you also pass the object referred by the refenerece variable to the method. b.In the...
A recent income statement of Walmart reports net sales of $482,229 million and cost of goods sold of $365,086 million for the year ended January 31, 2015. The comparable sales and cost of goods sold...
Journalize the transactions for the year of 2. Post transactions to T-accounts to determine the December 31, , balances related to the investment and investment income accounts. 3. Prepare 's partial...
Consider the simple linear regression model fit to the ozone data in Problem 2.13. Problem 2.13 Davidson ("Update on Ozone Trends in California's South Coast Air Basin," Air and Waste, 43, 226, 1993)...
Baker, CPA, was engaged to audit Mill Company's financial statements for the year ended September 30, 20X1. After obtaining an understanding of Mill's internal control structure, Baker decided to...
Use the given graph to solve the following inequality. f(x)4 The solution set for f(x)4 is (Type your answer in interval notation.)
You will modify the Rounded Item Prices query to round retail values for items in the inventory. Open the Rounded Item Prices query in Design view. Create a new column to round the Retail price of...
Comparative consolidated financial statements for Pop Corporation and its subsidiary, Sat Corporation, at and for the years ended December 31, 2012 and 2011 follow (in thousands). REQUIRED: Prepare a...
Poe Corporation purchased a 90 percent interest in San Corporation on December 31, 2011, for $2,700,000 cash, when San had capital stock of $2,000,000 and retained earnings of $500,000. All San's...
The profile given in Problem 7.12. is in plunging motion with $\mathrm{k}=0.3$. Determine the upper surface pressure distribution in terms of the amplitude of plunging. Problem 7.12 For a 5% thick...
You are the Financial Director of Harambee Ltd ("Haramboo) Harambee is a listed company on the Namibian Stock Exchange with 100 000 ordinary shares issued at 30 June 2019 and 20 000 10% cumulative,...
Based on this information, fill out the 1040 forms. Note: THESE ARE NOT REAL PEOPLE WITH MADE UP INFORMATION Cornstalk & Eliott 2020 Taxes: John Cornstalk with social security number 333-45-6789,...
A partial trial balance for the Ryman Corporation is presented in the table below. Ryman has recorded some, but not all, of its transactions for the current reporting period, the year ending December...
Annika Mashabe (AM) and Sarah Kunene (SK) are in a partnership. They own and manage a business trading as 'Everything Beauty" that sells and distributes beauty products to all of the major beauty...
(2) [This one is a little involved, but quite important and illustrates the usefulness of large sample theory to guide decisions. See the video example provided on the course webpage for a very...
A generator bus (with a 1.0 per unit voltage) supplies a $180 \mathrm{MW}, 60 \mathrm{Mvar}$ load through a lossless transmission line with per unit (100 MVA base) impedance of $j 0.1 $ and no...
An interest bearing promissory note for 90 days at 5.6% p.a. has a face value of $120,000. If the note is discounted 20 days after the issue date at a rate of 6.8% p.a., calculate the amount of...
Conservation of Energy can be used to show that when a mass m oscillates at the end of a spring with spring constant k, the period of oscillation is where E is the total energy of the mass. Show that...
Selected amounts from the separate unconsolidated financial statements of Poe Corporation and its 90 percent-owned subsidiary, Saw Company, at December 31, 2011, are as follows. ADDITIONAL...
Financial statements for Par Corporation and its 75 percent-owned subsidiary, Sal Corporation, for 2012 are summarized as follows (in thousands): Par Corporation acquired its interest in Sal at book...
How are enterprise and internal service funds similar? How are they different?
f(x)=5x-3, g(x)=x-5 (f+g)(x)=(Simplify your answer.)
(5) A small maintenance project consists of the following jobs whose precedence relationships are given below: Job 1-2 1-3 2-3 2-5 3-4 Immediate Predecessor 15 15 3 5 8 8 Activity 3-6 4-5 4-6 5-6 6-7...
Let X be a binomial random variable with the probability distribution f(x) shown below. Find the probability distribution of the random variable Y=x. f(x)= Bere 3-x x=0,1,2,3 elsewhere Complete the...

The effect of unrealized profits and losses on sales between affiliated companies is eliminated in preparing consolidated

Question:

Step by Step Answer:

Profits and losses on sales between affiliates are realized for consolidated ...View the full answer

Advanced Accounting

Students also viewed these Accounting questions