During 2010, Pier One Company billed its 80% owned subsidiary, Scale Company, $700,000 for architectural services. The
Question:
During 2010, Pier One Company billed its 80% owned subsidiary, Scale Company, $700,000 for architectural services. The cost to Pier One Company of providing the services was $400,000 for salaries and $150,000 for other operating expenses. Scale Company charged the architecture fees to the cost of a building that it opened on January 1, 2011. The building had an estimated useful life of 30 years.
Required:
Prepare in general journal form the workpaper entries relating to the intercompany fees that are necessary in the consolidated statements workpapers for the years ended December 31, 2010, 2011, and 2012.
Step by Step Answer:
20 10 Architectural Fees 700000 Salary Expense 400000 Other Expense 150000 Buil...View the full answer
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
Students also viewed these Accounting questions
-
Prepare in general journal form the workpaper entries to eliminate Prancer Companys investment in Saltez Company in the preparation of a consolidated balance sheet at the date of acquisition for each...
-
An intangible asset with an estimated useful life of 30 years was acquired on January 1, 1998, for $450,000. On January 1, 2008, a review was made of intangible assets and their expected service...
-
An intangible asset with an estimated useful life of 30 years was acquired on January 1, 2009, for $540,000. On January 1, 2019, a review was made of intangible assets and their expected service...
-
A group of investors is considering buying the Wheelwright Corporation, but does not want to contribute to the companys financial support after the purchase. Wheelwrights management has offered the...
-
The federal government cut transfer payments to the provinces by a total of 20% over a five-year period. In the next budget speech, the Minister of Finance announced the level of transfer payments...
-
Minnie wants to buy a home. She contacts the owner of a potential property that she likes. While Minnie is not sure that the home is for her, she wants to prevent someone else from buying the...
-
Use the data in the first table of Global Insights 6.1 to calculate U.S. tariff revenues on costume jewelry, glass and glassware, and rubber footwear. Global Insights 6.1 The Welfare Costs of...
-
Shown below in T-account format are the changes affecting the retained earnings of Brenner-Jude Corporation during 2011. At January 1, 2011, the corporation had outstanding 105 million common shares,...
-
1. $3,800+ ($8,000) =$ (-4,200) Netting of long term capital gains and losses ($2,400) + 2,000 + ($500) = $ (-900) Netting of short term capital gains and losses (-4,200) + (-900) = $(-5,100) Netting...
-
Married taxpayers David and Lillian Perdue file jointly and have a daughter. Erin. They live at 9510 Bluebird Canyon Drive, Seattle, WA 99201. The Perdues own their home, which was paid off last...
-
P Company owns 80% of the outstanding stock of S Company. The 2012 sales of S Company included revenue of $390,000 consisting of consulting services billed to P Company at cost plus 30%. P Company...
-
Pinta Company, a forklift manufacturer, owns 80% of the voting stock of Standard Company. On January 1, 2011, Pinta Company sold forklifts to Standard Company for $400,000. The forklifts, which...
-
In what way does the agreement injure the public?
-
Myrna & Co. is a manufacturer of various types of dyes for industrial use. Following is the unadjusted trial balance as on 31 August, 2015: Unadjusted Trial Balance Account Cash Prepaid Insurance...
-
Given the earnings per share over the period 2014-2021 shown in the following table, determine the annual dividend per share under each of the policies set forth in parts a through d. Year 2021 2020...
-
National parks to offer free-entry weekends Interior Secretary Ken Salazar has urged everyone to visit the national parks over the weekends of June 20-21, July 18-19, and August 15-16 when admission...
-
Oskar's Odditorium sells fidget spinners. Oskar estimates the price elasticity of demand for fidget spinners is 1.2. If Oskar wants to increase sales by 15 percent and assuming no change (i.e., no...
-
How is the act of Projection at play in how the narrator uses the Old Man/how he perceives his Evil Eye to maintain the sense of self, the Persona , he is compulsively beholden to? Consider the...
-
The x86 instruction set includes the REP prefix that causes the instruction to be repeated a given number of times or until a condition is satisfied. Note that x86 instructions refer to 8 bits as a...
-
What can you do to reduce hunger where you live? To reduce hunger globally?
-
(a) Design a linear source circuit that will deliver an output phasor \(\mathbf{V}_{\mathrm{O}}=30 \angle 45^{\circ} \mathrm{V}\) when an input voltage \(v_{\mathrm{S}}(t)\) \(=120 \cos (377 t)...
-
Cite the conditions under which consolidated net income under parent-company theory would equal income to controlling stockholders under entity theory.
-
If income from a subsidiary is measured under the equity method and the statements are consolidated under entity theory, will consolidated net income equal parent net income?
-
If income from a subsidiary is measured under the equity method and the statements are consolidated under entity theory, will consolidated net income equal parent net income?
-
Reflect on a group interview you've had: * Was there anything you struggled with in preparing for the peer interviews? * What would you have changed about your interview? What would you have kept the...
-
Please conduct comprehensive research on the status of Metaverse, Choose a company, an industry, a product, or a service, and Share the strategies being used in Metaverse to develop a competitive...
-
Renovation and Restoration of community Park project For Risk management plan External risk : Budget Fluctuations in local economy Environment disasters Internal Risk: Safety Not enough money, staff...
Study smarter with the SolutionInn App