Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. exercise 7-12 pomeroy corporation owns an 80% inte

Exercise 7-12 Pomeroy Corporation owns an 80% interest in Sherer Company and a 90% interest...

70.2K

Verified Solution

Question

Accounting

Exercise 7-12

Pomeroy Corporation owns an 80% interest in Sherer Company and a 90% interest in Tampa Company. On January 2, 2014, Tampa Company sold equipment with a book value of $631,800 to Sherer Company for $705,300. This equipment has a remaining useful life of three years. Sherer Company reported $108,800 and Tampa Company reported $154,500 in net income (including sales to affiliates) in 2014.

Prepare the 2014 and 2015 consolidated statements workpaper entries to eliminate the effects of this sale of equipment. (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.)

image

I need help with solving this problem and put the correct name on the account. HELP PLEASE!!

Date Account Titles and Explanation Debit Credit 2014 Sales 73500 73500 Purchases (To eliminate equipment) Accounts Payable X). Accounts Receivable (To eliminate depreciation on equipment) 2015 Retained Earnings - Beginn Noncontrolling Interest 73500 Equipment (To eliminate equipment) Accumulated Depreciation Depreciation Expense x Retained Earnings - Beginn Noncontrolling Interest (To eliminate depreciation on

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