Flintstone Inc. acquired all of Rubble Co. on January 1, 2011. Flintstone decided to use the Equity Method to account for this investment. During 2011, Flintstone sold to Rubble for $600,000 inventory with a cost of $500,000. At the end of the year 30% of the goods were still in Rubble's inventory.
Required:
Prepare Consolidation Entries I for the intra-entity transfer and the ending inventory adjustment necessary for the consolidation worksheet at 12/31/11.