P 6 2 5 Multiple Inventory Transfers between Parent and Subsidiary Proud Company and Slinky Company both produce and purchase equipment for resale each period and frequently sell to each other Because Proud Company holds 6 0 percent ownership of Slinky Company, Proud's controller compiled the following information with regard to intercompany transactions between the two companies in 2 0 X 5 and 2 0 X 6 table Year , Produced by , Sold to , Percent Resold to Nonaffiliate in , 2 0 X 5 , 2 0 X 6 , 2 0 X 5 , Proud Company,Slinky Company, 6 0 , 4 0 , 2 0 X 5 , Stinky Company,Prout Company, 3 0 , 5 0 , 2 0 X 6 , Proud Company,Slinky Company,, 9 0 , 2 0 X 6 , Stimy Company,Pyet Company,, 2 5 , , pround,sunpy,, Required a Give the consolidation entries required at December 3 1 , 2 0 X 6 , to eliminate the effects of the inventory transfers in preparing a full set of consolidated financial statements b Compute the amount of cost of goods sold to be reported in the consolidated income statement for 2 0 X 6 P 6 2 5 Multiple Inventory Transfers between Parent and Subsidiary Proud Company and Slinky Company both produce and purchase equipment for resale each period and frequently sell to each other Because Proud Company holds 6 0 percent ownership of Slinky Company, Proud's controller compiled the following information with regard to intercompany transactions between the two companies in 2 0 X 5 and 2 0 X 6 table Year , Produced by , Sold to , Percent Resold to Nonaffiliate in , 2 0 X 5 , 2 0 X 6 , 2 0 X 5 , Proud Company,Slinky Company, 6 0 , 4 0 , 2 0 X 5 , Stinky Company,Prout Company, 3 0 , 5 0 , 2 0 X 6 , Proud Company,Slinky Company,, 9 0 , 2 0 X 6 , Stimy Company,Pyet Company,, 2 5 , , pround,sunpy,, Required a Give the consolidation entries required at December 3 1 , 2 0 X 6 , to eliminate the effects of the inventory transfers in preparing a full set of consolidated financial statements b Compute the amount of cost of goods sold to be reported in the consolidated income statement for 2 0 X 6 P 6 2 5 Multiple Inventory Transfers between Parent and Subsidiary Proud Company and Slinky Company both produce and purchase equipment for resale each period and frequently sell to each other Because Proud Company holds 6 0 percent ownership of Slinky Company, Proud's controller compiled the following information with regard to intercompany transactions between the two companies in 2 0 X 5 and 2 0 X 6 table Year , Produced by , Sold to , Percent Resold to Nonaffiliate in , 2 0 X 5 , 2 0 X 6 , 2 0 X 5 , Proud Company,Slinky Company, 6 0 , 4 0 , 2 0 X 5 , Stinky Company,Prout Company, 3 0 , 5 0 , 2 0 X 6 , Proud Company,Slinky Company,, 9 0 , 2 0 X 6 , Stimy Company,Pyet Company,, 2 5 , , pround,sunpy,, Required a Give the consolidation entries required at December 3 1 , 2 0 X 6 , to eliminate the effects of the inventory transfers in preparing a full set of consolidated financial statements b Compute the amount of cost of goods sold to be reported in the consolidated income statement for 2 0 X 6 P 6 2 5 Multiple Inventory Transfers between Parent and Subsidiary Proud Company and Slinky Company both produce and purchase equipment for resale each period and frequently sell to each other Because Proud Company holds 6 0 percent ownership of Slinky Company, Proud's controller compiled the following information with regard to intercompany transactions between the two companies in 2 0 X 5 and 2 0 X 6 table Year , Produced by , Sold to , Percent Resold to Nonaffiliate in , 2 0 X 5 , 2 0 X 6 , 2 0 X 5 , Proud Company,Slinky Company, 6 0 , 4 0 , 2 0 X 5 , Stinky Company,Prout Company, 3 0 , 5 0 , 2 0 X 6 , Proud Company,Slinky Company,, 9 0 , 2 0 X 6 , Stimy Company,Pyet Company,, 2 5 , , pround,sunpy,, Required a Give the consolidation entries required at December 3 1 , 2 0 X 6 , to eliminate the effects of the inventory transfers in preparing a full set of consolidated financial statements b Compute the amount of cost of goods sold to be reported in the consolidated income statement for 2 0 X 6 P 6 2 5 Multiple Inventory Transfers between Parent and Subsidiary Proud Company and Slinky Company both produce and purchase equipment for resale each period and frequently sell to each other Because Proud Company holds 6 0 percent ownership of Slinky Company, Proud's controller compiled the following information with regard to intercompany transactions between the two companies in 2 0 X 5 and 2 0 X 6 table Year , Produced by , Sold to , Percent Resold to Nonaffiliate in , 2 0 X 5 , 2 0 X 6 , 2 0 X 5 , Proud Company,Slinky Company, 6 0 , 4 0 , 2 0 X 5 , Stinky Company,Prout Company, 3 0 , 5 0 , 2 0 X 6 , Proud Company,Slinky Company,, 9 0 , 2 0 X 6 , Stimy Company,Pyet Company,, 2 5 , , pround,sunpy,, Required a Give the consolidation entries required at December 3 1 , 2 0 X 6 , to eliminate the effects of the inventory transfers in preparing a full set of consolidated financial statements b Compute the amount of cost of goods sold to be reported in the consolidated income statement for 2 0 X 6 P 6 2 5 Multiple Inventory Transfers between Parent and Subsidiary Proud Company and Slinky Company both produce and purchase equipment for resale each period and frequently sell to each other Because Proud Company holds 6 0 pe

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Question: P 6 - 2 5 Multiple Inventory Transfers between Parent and Subsidiary Proud Company and Slinky Company both produce and purchase equipment for resale each

6 - 25

Multiple Inventory Transfers between Parent and Subsidiary

Proud Company and Slinky Company both produce and purchase equipment for resale each period and frequently sell to each other. Because Proud Company holds

60

percent ownership of Slinky Company, Proud's controller compiled the following information with regard to intercompany transactions between the two companies in

20

5

and

20

6

\

table

[[

Year

,

Produced by

,

Sold to

,

Percent Resold to Nonaffiliate in

], [20

5, 20

6], [20

5,

Proud Company,Slinky Company,

60 %, 40 %], [20

5,

Stinky Company,Prout Company,

30, 50], [20

6,

Proud Company,Slinky Company,,

90], [20

6,

Stimy Company,Pyet Company,,

25], [,

pround,sunpy,,

]]

Required

.

Give the consolidation entries required at December

31, 20

6,

to eliminate the effects of the inventory transfers in preparing a full set of consolidated financial statements.

.

Compute the amount of cost of goods sold to be reported in the consolidated income statement for

20

6 .

6 - 25

Multiple Inventory Transfers between Parent and Subsidiary

Proud Company and Slinky Company both produce and purchase equipment for resale each period and frequently sell to each other. Because Proud Company holds

60

percent ownership of Slinky Company, Proud's controller compiled the following information with regard to intercompany transactions between the two companies in

20

5

and

20

6

\

table

[[

Year

,

Produced by

,

Sold to

,

Percent Resold to Nonaffiliate in

], [20

5, 20

6], [20

5,

Proud Company,Slinky Company,

60 %, 40 %], [20

5,

Stinky Company,Prout Company,

30, 50], [20

6,

Proud Company,Slinky Company,,

90], [20

6,

Stimy Company,Pyet Company,,

25], [,

pround,sunpy,,

]]

Required

.

Give the consolidation entries required at December

31, 20

6,

to eliminate the effects of the inventory transfers in preparing a full set of consolidated financial statements.

.

Compute the amount of cost of goods sold to be reported in the consolidated income statement for

20

6 .

6 - 25

Multiple Inventory Transfers between Parent and Subsidiary

Proud Company and Slinky Company both produce and purchase equipment for resale each period and frequently sell to each other. Because Proud Company holds

60

percent ownership of Slinky Company, Proud's controller compiled the following information with regard to intercompany transactions between the two companies in

20

5

and

20

6

\

table

[[

Year

,

Produced by

,

Sold to

,

Percent Resold to Nonaffiliate in

], [20

5, 20

6], [20

5,

Proud Company,Slinky Company,

60 %, 40 %], [20

5,

Stinky Company,Prout Company,

30, 50], [20

6,

Proud Company,Slinky Company,,

90], [20

6,

Stimy Company,Pyet Company,,

25], [,

pround,sunpy,,

]]

Required

.

Give the consolidation entries required at December

31, 20

6,

to eliminate the effects of the inventory transfers in preparing a full set of consolidated financial statements.

.

Compute the amount of cost of goods sold to be reported in the consolidated income statement for

20

6 .

6 - 25

Multiple Inventory Transfers between Parent and Subsidiary

Proud Company and Slinky Company both produce and purchase equipment for resale each period and frequently sell to each other. Because Proud Company holds

60

percent ownership of Slinky Company, Proud's controller compiled the following information with regard to intercompany transactions between the two companies in

20

5

and

20

6

\

table

[[

Year

,

Produced by

,

Sold to

,

Percent Resold to Nonaffiliate in

], [20

5, 20

6], [20

5,

Proud Company,Slinky Company,

60 %, 40 %], [20

5,

Stinky Company,Prout Company,

30, 50], [20

6,

Proud Company,Slinky Company,,

90], [20

6,

Stimy Company,Pyet Company,,

25], [,

pround,sunpy,,

]]

Required

.

Give the consolidation entries required at December

31, 20

6,

to eliminate the effects of the inventory transfers in preparing a full set of consolidated financial statements.

.

Compute the amount of cost of goods sold to be reported in the consolidated income statement for

20

6 .

6 - 25

Multiple Inventory Transfers between Parent and Subsidiary

Proud Company and Slinky Company both produce and purchase equipment for resale each period and frequently sell to each other. Because Proud Company holds

60

percent ownership of Slinky Company, Proud's controller compiled the following information with regard to intercompany transactions between the two companies in

20

5

and

20

6

\

table

[[

Year

,

Produced by

,

Sold to

,

Percent Resold to Nonaffiliate in

], [20

5, 20

6], [20

5,

Proud Company,Slinky Company,

60 %, 40 %], [20

5,

Stinky Company,Prout Company,

30, 50], [20

6,

Proud Company,Slinky Company,,

90], [20

6,

Stimy Company,Pyet Company,,

25], [,

pround,sunpy,,

]]

Required

.

Give the consolidation entries required at December

31, 20

6,

to eliminate the effects of the inventory transfers in preparing a full set of consolidated financial statements.

.

Compute the amount of cost of goods sold to be reported in the consolidated income statement for

20

6 .

6 - 25

Multiple Inventory Transfers between Parent and Subsidiary

Proud Company and Slinky Company both produce and purchase equipment for resale each period and frequently sell to each other. Because Proud Company holds

60

P 6 - 2 5 Multiple Inventory Transfers between

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