Question: Apple Contractors, an 80%-owned subsidiary, is constructing a warehouse for its parent, Plum Corporation. The following information is available on December 31, 2011: Percent of

Apple Contractors, an 80%-owned subsidiary, is constructing a warehouse for its parent, Plum Corporation. The following information is available on December 31, 2011:

Percent of completion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60%

Costs incurred to date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $120,000

Estimated costs to complete. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000

Contract price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250,000

Amount billed to date (no amounts collected) . . . . . . . . . . . . . . . 150,000

Apple uses the percentage-of-completion method to account for its long-term contracts.

Record the journal entries that each of the two companies would have made relative to the construction. Prepare a partial trial balance using the data from your entries, and show the eliminations relating to the contract for the December 31, 2011, consolidated worksheet.

Step by Step Solution

★★★★★

3.41 Rating (167 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Parents entry Plant Asset Under Construction 150000 Contracts Payable 150000 Subsidiarys entries Con... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

418-B-A-C (436).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

The following information is available on the Vanier Corporation: BALANCE SHEET AS OF DECEMBER 31, 20X6 (IN THOUSANDS) INCOME STATEMENT FOR 20X6 (IN THOUSANDS) Credit sales..$8,000 Cost of goods...

The following information is available on Crain Co.'s two product lines: Assuming the tables line is discontinued and the factory space previously used to make tables is rented for $24,000 per year,...

Find the total area between the graph of the function f(x) = 2x-31, and the x-axis over the interval [-3, 6]. Provide your answer below:

(LO 4) Percentage-of-completion method. Apple Contractors, an 80%- owned subsidiary, is constructing a warehouse for its parent, Plum Corporation. The following information is available on December...

Exercise 8 (LO 4) Percentage-of-completion method. Apple Contractors, an 80%-owned subsidiary, is constructing a warehouse for its parent, Plum Corporation. The following information is available on...

Need stakeholder analysis, swot analysis and pestle analysis for the below case study- Bella Beverages Inc. 1 Bella Beverages Inc. Overview Bella Beverages Inc. (BB) is a Canadian company traded on...

Apple acquired 80 percent of Apol on December 31, 2012. Based on the purchase price, goodwill of 300,000 was recognized. The 2013 financial statements are as follows: Apple Apol Sales 800,000.00...

I: Multiple Choice 1. On January 1, 2009, Dermot Company purchased 15% of the voting common stock of Horne Corp. On January 1, 2011, Dermot purchased 28% of Horne's voting common stock. If Dermot...

Report Format: Your report should include: II. Executive Summary (1 page in length). The Executive Summary is a concise overview of the report. The Case Study Report should be written from the...

CASE 11 Netflix in 2012: Can It Recover from Its Strategy Missteps? Arthur A. Thompson The University of Alabama hroughout 2010 and the first six months of 2011, Netflix was on a roll. Movie...

An automobilers starting from rest speeds up to 12 m/s with a constant acceleration of 1.2 2 m/s, runs at this speed for a time, and finally comes to rest with a deceleration of 1.5 m/s. If the total...

Match the disease to the characteristic that best describes it Norovirus VI Cheose % of people and animals naveon our skin at all times Cruise ship disease Saimonella You're likely to see an increase...

A data center consists of multiple computers in a centralized location where computing and networking equipment is used to process large amounts of data that reside on a central file system.

When McDonalds moved into India, it faced a particularly difficult task. The major religion in India is the Hindu religion, and Hindus dont eat beefin fact, most of the 1 billion people living in...

A partnership has assets of $210,000 and liabilities of $95,000. The capital information for the current partners is as follows: Given the above information, respond to each of the following...

A partnership has decided to liquidate its operations. Prior to beginning the liquidation process, the partnership had cash balances of $12,000 and noncash assets of $210,000. At that time...

The preclosing trial balance of the general fund of Shorewood Village for fiscal year ended June 30, 2019, is as follows: 1. Prepare closing entries. 2. Prepare a budget to actual comparison...

The concept of stack is extremely important in computer science and is used in a wide variety of problems. This assignment requires you to write a program that can be used to evaluate ordinary...

fference between a high resolution image and a low resolution image

2. ALL, Inc. Make or Buy Decision All Inc, manufactures thermostats for home and industrial use. The selling price for thermostat is 750 per unit. Thermostats consist of relays, switches and valves....