Business, 23.09.2020 15:01 1hannacarson

Assume that during 2015 a wholly owned subsidiary sells land that originally cost $360,000 to its parent for a sale price of $400,000. The parent holds the land until it sells the land to an unaffiliated company on December 31, 2019. The parent uses the equity method of pre-consolidation bookkeeping. a. Prepare the required [I] consolidation entry in 2015.
Description Debit Credit
[lgain] AnswerAccounts payableAccounts receivableAccumulated stockCost of goods soldDepreciation expenseEquipmentEquity investmentGain on saleLoss on earningsSales Answer Answer
AnswerAccounts payableAccounts receivableAccumulated stockCost of goods soldDepreciation expenseEquipmentEquity investmentGain on saleLoss on earningsSales Answer Answer
b. Prepare the required [I] consolidation entry required at the end of each year 2016 through 2018.
Description Debit Credit
[lgain] AnswerAccounts payableAccounts receivableAccumulated stockCost of goods soldDepreciation expenseEquipmentEquity investmentGain on saleLoss on earningsSales Answer Answer
AnswerAccounts payableAccounts receivableAccumulated stockCost of goods soldDepreciation expenseEquipmentEquity investmentGain on saleLoss on earningsSales Answer Answer
c. Assume that the parent re-sells the land outside of the consolidated group for $420,000 on December 31, 2019. Prepare the journal entry made by the parent to record the sale and the required [I] consolidation entry for 2019.
Description Debit Credit
AnswerAccounts payableAccounts receivableAccumulated stockCost of goods soldDepreciation expenseEquipmentEquity investmentGain on saleLoss on earningsSales Answer Answer
AnswerAccounts payableAccounts receivableAccumulated stockCost of goods soldDepreciation expenseEquipmentEquity investmentGain on saleLoss on earningsSales Answer Answer
Land Answer Answer
[lgain] AnswerAccounts payableAccounts receivableAccumulated stockCost of goods soldDepreciation expenseEquipmentEquity investmentGain on saleLoss on earningsSales Answer Answer
AnswerAccounts payableAccounts receivableAccumulated stockCost of goods soldDepreciation expenseEquipmentEquity investmentGain on saleLoss on earningsSales Answer Answer
d. What will be the amount of gain reported in the consolidated income statement in 2019?
$Answer

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 02:00

Keshawn used to work for an it company in baltimore, but lost his job when his company decided to use workers in new delhi instead. this is an example of:

Answers: 1

Answer

Business, 22.06.2019 18:30

Health insurance protects you if you experience any of the following except: a: if you have to be hospitalized b: if you damage someone's property c: if you need to visit a clinic d: if you can't work because of illness

Answers: 2

Answer

Business, 22.06.2019 20:40

Which of the following would indicate an improvement in a company's financial position, holding other things constant? a. the inventory and total assets turnover ratios both decline.b. the debt ratio increases.c. the profit margin declines.d. the times-interest-earned ratio declines.e. the current and quick ratios both increase.

Answers: 3

Answer

Business, 22.06.2019 22:20

Mattress wholesalers, inc. is constantly trying to reduce inventory in its supply chain. last year, cogs was $7.47 million and inventory was $1.47 million. this year, cogs is $8.65 million and inventory investment is $1.64 million.a) what was its weeks of supply last ) what is its weeks of supply this ) is mattress wholesalers making progress in its inventory reduction effort? since the number of weeks that cover the supply has mattress wholesalers is making in its inventory reduction effort.

Answers: 3

Answer

You know the right answer?

Assume that during 2015 a wholly owned subsidiary sells land that originally cost $360,000 to its pa...

Questions