Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. e 5-12 consolidated income statement (intercompany

E 5-12 Consolidated income statement (intercompany sales correction) E 5-12 Consolidated income statement (intercompany sales...

90.2K

Verified Solution

Question

Accounting

E 5-12 Consolidated income statement (intercompany sales correction)

E 5-12 Consolidated income statement (intercompany sales correction) The consolidated income statement of Pop and Son for 2016 was as follows (in thousands):

Sales

$5,520

Cost of sales

(3,680)

Operating expenses

(640)

Income to 20 percent noncontrolling interest in Son

(160)

Consolidated net income

$ 1,040

After the consolidated income statement was prepared, it was discovered that intercompany sales transactions had not been considered and that unrealized profits had not been eliminated. Information concerning these items follows (in thousands):

Cost Selling Price Unsold at Year-End 2015 SalesPop to Son

$640

$720

25%

2016 SalesSon to Pop

360

480

40

Required Prepare a corrected consolidated income statement for Pop and Son for the year ended December 31, 2016.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

1. What has the greatest influence on the length and detail of a process plan, and...

Mechanical Engineering
Q

One way to show that two triangles are similar is to show that two angles...

Geometry
Q

8 1 point B 48 b C a 3 2 a 3 3 46 If...

Geometry
Q

Chapter 6

Basic Math
Q

Top managers of Maine Flooring are alarmed by their operating losses They are analysis to...

Basic Math
Q

A random sample of 864 births in a state included 428 boys. Construct a 95%...

Basic Math
Q

ABC Company sold the rights to use one of their patented processes that will result...

Accounting
Q

Isabel, a calendar year taxpayer uses the cash method of accounting for her sole proprietorship....

Accounting
Q

Question 6 a: Which of the following statements is correct and applies to inventory-costing methods...

Accounting
Q

Variacin de volumen de gastos generales de fbrica Bellingham Company produjo 15 000 unidades...

Accounting
Q

Exercises 1. At the end of the first year of operations, 6,400 units remained in...

Accounting
Q

Sunshine LLC sold furniture for $75,100. Sunshine bought the furniture for $89,980 several years ago...

Accounting