Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. exercise 6-1 p company owns 80% of the outstanding

Exercise 6-1 P Company owns 80% of the outstanding stock of S Company. During 2014,...

90.2K

Verified Solution

Question

Accounting

Exercise 6-1

P Company owns 80% of the outstanding stock of S Company. During 2014, S Company reported net income of $509,270 and declared no dividends. At the end of the year, S Companys inventory included $464,810 in unrealized profit on purchases from P Company. Intercompany sales for 2014 totaled $2,455,400. Prepare in general journal form all consolidated financial statement workpaper entries necessary at the end of the year to eliminate the effects of the 2014 intercompany sales. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Account Titles and Explanation

Debit

Credit

(To eliminate intercompany sales of 2014)

(To eliminate unrealized intercompany profit in inventory)

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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students