Doorst acquired the shares of Hingle Company on January 1, 20X7. On December 31, 20X8, assume...

 

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Doorst acquired the shares of Hingle Company on January 1, 20X7. On December 31, 20X8, assume Doorst sold inventory to Hingle during 20X8 for $100,000 and Hingle sold inventory to Doorst for $300,000. Doorst's balance sheet contains inventory items purchased from Hingle for $95,000. The items cost Hingle $55,000 to produce. In addition, Hingle's inventory contains goods it purchased from Doorst for $25,000 that Doorst had produced for $15,000. Assume Hingle reported net income of $70,000 and dividends of $14,000. Total Assets $420,000 Accounts Payable $20,000 Common Stock 150,000 Retained Earnings 250,000 Total Liabilities & Equity $420.000 $800,000 $70,000 200,000 530,000 $800,000 Required Prepare all elimination entries needed to complete a consolidated balance sheet worksheet as of December 31, 20X8. Prepare a consolidated balance sheet worksheet as of December а. b. 31, 20X8. 10. Home Products Corporation, which sells a broad line of home detergent products, owns 75 percent of the stock of Level Brothers Soap Company. During 20X8, Level Brothers sold soap products to Home Products for $180,000, which it had produced for $120,000. Home Products sold $150,000 of its purchase from Level Brothers in 20X8 and the remainder in 20X9. In addition, Home Products purchased $240,000 of inventory from Level Brothers in 20X9 and resold $90,000 of the items before year-end. Level Brothers' cost to produce the items sold to Home Products in 20X9 was $160,000. Required Give all worksheet elimination entries needed for December 31, 20X9, to remove the effects of the intercompany inventory transfers in 20X8 and 20X9. а. b. Compute the amount of income assigned to non controlling shareholders in the 20X8 and 20X9 consolidated income statements if Level Brothers reported net income of $350,000 for 20X8 and $420,000 for 20X9. Doorst acquired the shares of Hingle Company on January 1, 20X7. On December 31, 20X8, assume Doorst sold inventory to Hingle during 20X8 for $100,000 and Hingle sold inventory to Doorst for $300,000. Doorst's balance sheet contains inventory items purchased from Hingle for $95,000. The items cost Hingle $55,000 to produce. In addition, Hingle's inventory contains goods it purchased from Doorst for $25,000 that Doorst had produced for $15,000. Assume Hingle reported net income of $70,000 and dividends of $14,000. Total Assets $420,000 Accounts Payable $20,000 Common Stock 150,000 Retained Earnings 250,000 Total Liabilities & Equity $420.000 $800,000 $70,000 200,000 530,000 $800,000 Required Prepare all elimination entries needed to complete a consolidated balance sheet worksheet as of December 31, 20X8. Prepare a consolidated balance sheet worksheet as of December а. b. 31, 20X8. 10. Home Products Corporation, which sells a broad line of home detergent products, owns 75 percent of the stock of Level Brothers Soap Company. During 20X8, Level Brothers sold soap products to Home Products for $180,000, which it had produced for $120,000. Home Products sold $150,000 of its purchase from Level Brothers in 20X8 and the remainder in 20X9. In addition, Home Products purchased $240,000 of inventory from Level Brothers in 20X9 and resold $90,000 of the items before year-end. Level Brothers' cost to produce the items sold to Home Products in 20X9 was $160,000. Required Give all worksheet elimination entries needed for December 31, 20X9, to remove the effects of the intercompany inventory transfers in 20X8 and 20X9. а. b. Compute the amount of income assigned to non controlling shareholders in the 20X8 and 20X9 consolidated income statements if Level Brothers reported net income of $350,000 for 20X8 and $420,000 for 20X9.

Answer rating: 100% (QA)

Answer a Equity Method Entries on Doorst Corps Books Investment in Hingle Co 49000 Income from Hingle Co 49000 Record Doorst Corps 70 share of Hingle ... View the full answer