Question: On January 1 , 2 0 2 3 Parent held merchandise acquired from Subsidiary for $ 4 0 , 0 0 0 . During 2

 On January 1,2023 Parent held merchandise acquired from Subsidiary for $40,000. During 2013 Subsidiary sold merchandise to Parent for $120,000, of which Parent holds $20,000 on December 31,2013. Subsidiarys gross profit on sales is 40% for both years. On December 31,2023 Parent still owes Subsidiary $5,000 for merchandise. Make all of the entries pertaining to intercompany sales and inventories.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Okay lets work through the entries pertaining to the intercompany sales and inventories 1 On January ... View full answer

blur-text-image
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 (2 attachments)

PDF file Icon

6642eeb521b9e_972786.pdf

180 KBs PDF File

Word file Icon

6642eeb521b9e_972786.docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Q:

On January 1, 20XI, Parent Company acquired 80% of the common stock of Subsidiary Company for $750,000. On this date, Subsidiary had total owners equity of $540,000 Any excess of cost over book value...

Q:

January 1, 20x3, parent held merchandise acquired from subsidiary for $50,000 during 20x3, subsidiary sold merchandise to Parent for $120,000, of which Parent holds $30,000 on December 31, 20X3....

Q:

On January 1 , 2 0 2 3 Subsidiary held merchandise acquired from Parent for $ 1 0 , 0 0 0 . During 2 0 1 3 Parent sold merchandise to Subsidiary for $ 3 0 , 0 0 0 , of which Subsidiary holds $ 6 , 0...

Q:

On Jamuary 1,2020, Parent Company acquired 100% of the common stock of Subsidiary Company for $1,000,000. On this date Subsidiary had total owners' equity of $750,000. Anv excess of cost over book...

Q:

On January 1 , 2 0 1 6 , Parent Company acquired 1 0 0 % of the common stock of Subsidiary Company for $ 7 5 0 , 0 0 0 . On this date Subsidiary had total owners' equity of $ 5 4 0 , 0 0 0 . Any...

Q:

On January 1 , 2 0 1 6 , Parent Company acquired 1 0 0 % of the common stock of Subsidiary Company for $ 7 5 0 , 0 0 0 . On this date Subsidiary had total owners' equity of $ 5 4 0 , 0 0 0 . Any...

Q:

Assume, on January 1 , 2 0 1 8 , a parent company acquired a 9 0 % interest in its subsidiary. The total fair value of the controlling and noncontrolling interest was $ 6 6 0 , 0 0 0 over the book...

Q:

Assume, on January 1 , 2 0 1 8 , a parent company acquired a 9 0 % interest in its subsidiary. The total fair value of the controlling and noncontrolling interest was $ 6 6 0 , 0 0 0 over the book...

Q:

Assume, on January 1 , 2 0 1 8 , a parent company acquired a 9 0 % interest in its subsidiary. The total fair value of the controlling and noncontrolling interest was $ 6 6 0 , 0 0 0 over the book...

Q:

Assume, on January 1 , 2 0 1 8 , a parent company acquired a 9 0 % interest in its subsidiary. The total fair value of the controlling and noncontrolling interest was $ 6 6 0 , 0 0 0 over the book...

Q:

Construct a condence interval for p1 - p2 at the given level of condence. x1 = 109, n1 = 475, x2 = 78, n2 = 325, 99% condence

Q:

a. Prepare a horizontal analysis of the change in balances from 2014 to 2015. The following financial statement information is from Walgreens Boots Alliance Inc. its 2015 and 2014 fiscal yearends (S...

Q:

Why is Controlling such an important component of management, and how often should it be done?

Q:

Innis Investments manages funds for a number of companies and wealthy clients. The investment strategy is tailored to each clients needs. For a new client, Innis has been authorized to invest up to...

Q:

Corner Tavern is a small-town bar that sells only bottled beer. The average price of a bottle of beer at the tavern is $3.00 and the average cost of a bottle of beer to the tavern is $1.00. The...

Q:

The following supplemental RRA information is taken from the 2015 annual report of HL Oil & Gas Ltd. HL Oil & Gas Ltd. Statement of Changes in Standardized Measure Year Ended December 31, 2015...

Q:

Bond rating agencies have invested significant sums of money in an effort to determine which quantitative and nonquantitative factors best predict bond defaults. Furthermore, some of the raters...

Q:

You have been asked to participate in preparing your companys strategic plan. Specifically, your task is to analyze the competitive marketplace using Porters five-forces model. Prepare your analysis,...

Q:

6 Theory of Machines 5. A shaft carries five masses A, B, C, D and E which revolve at the same radius in planes which are equidistant from one another. The magnitude of the masses in planes A, C and...

Q:

Refer to the preceding facts for Penskes acquisition of Stock common stock. Penske uses the simple equity method to account for its investment in Stock. During 2012, Stock sells $30,000 worth of...

Q:

Panther Company is acquiring the net assets of Sharon Company. The book and fair values of Sharons accounts are as follows: What values will be assigned to current assets, land, building and...

Q:

Match the appropriate letter indicating the recording of the following transactions: 1. General obligation bonds were issued at par. 2. Approved purchase orders were issued for supplies. 3. The...

Q:

8. What is the objective of the randomized complete block design

Q:

1. Define analysis of variance.

Q:

2. Describe the completely randomized design.