Sweeny Corporation owns 60 percent of Bitner Companys shares. Partial 20X2 financial data for the companies and consolidated entity were as follows: On January 1, 20X2, Sweenys inventory contained items purchased from Bitner for $75,000. The cost of the units
On January 1, 20X2, Sweenys inventory contained items purchased from Bitner for $75,000. The cost of the units to Bitner was $50,000. All intercorporate sales during 20X2 were made by Bitner to Sweeny.
a. What amount of intercorporate sales occurred in 20X2?
b. How much unrealized intercompany profit existed on January 1, 20X2? On December 31, 20X2?
c. Give the worksheet elimination entries relating to inventory and cost of goods sold needed to prepare consolidated financial statements for 20X2.
d. If Bitner reports net income of $90,000 for 20X2, what amount of income is assigned to the noncontrolling interest in the 20X2 consolidated incomestatement?
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Sales Cost of Goods Sold Inventory, Dec. 31 Sweeny Corporation $550,000 310,000 180,000 Bitner Company $450,000 300,000 210,000 Consolidated Totals $820,000 420,000 375,000
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a 180 000 550 000 450 000 820 000 b January 1 20X2 25 000 7…View the full answer
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