Ahmad company (the 80%-owned subsidiary); in 1/5/2018 sold land to Fatima Company (the subsidiary) at selling price $125,000, the cost of land $100,000. During 2020, Fatima Company sold the land at $140,000. Net income for Fatima Company as follows: 

                         2018          2019            2020 

Net Profit     80,000       100,000       60,000

Instructions: 

1. Journalize the above transactions in Parent Company records and in the Subsidiary Company records.

2. Calculate the Parent company from the subsidiary’s net income? 

3. Calculate the Minority interest from the subsidiary’s net income?

4. Prepare the working paper in Journal entries format for 2018; 2019 and 2020? 

Answer rating: 100% (QA)

Answer1 Ahmad Company Parent General Journal Date Account Description Ref Debit in Credit in 152018 ... View the full answer