Nordway Corporation acquired 90 percent of Olman Company’s voting shares of stock in 20X1. During 20X4,...

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Nordway Corporation acquired 90 percent of Olman Company’svoting shares of stock in 20X1. During 20X4, Nordway purchased51,000 Playday doghouses for $32 each and sold 36,000 of them toOlman for $40 each. Olman sold 29,000 of the doghouses to retailestablishments prior to December 31, 20X4, for $55 each. Bothcompanies use perpetual inventory systems.
a.Prepare all journal entries Nordway recorded for the purchaseof inventory and resale to Olman Company in 20X4. (If noentry is required for a transaction/event, select "No journal entryrequired" in the first account field.)
-Record the purchase of inventory on account
-Record the sales of the Playday doghouses
-Record the cost of goods sold.
b.Prepare the journal entries Olman recorded for the purchase ofinventory and resale to retail establishments in 20X4. (Ifno entry is required for a transaction/event, select "No journalentry required" in the first account field.)
-Record the purchase of inventory onaccount.
-Record the sales of the Playday doghouses
-Record the cost of goods sold
c.Prepare the worksheet consolidation entry(ies) needed inpreparing consolidated financial statements for 20X4 to remove theeffects of the intercompany sale. (If no entry is requiredfor a transaction/event, select "No journal entry required" in thefirst account field.)
-Record the consolidation entry.

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a prepare jaurnal entries Norday recorded purchase of inventory Particulars Debit Credit Merchandise inventory 5100032 163200000 to Cash 163200000 to record the purchase of inventory Cash ac Dr 3600040 See Answer

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Nordway Corporation acquired 90 percent of Olman Company’svoting shares of stock in 20X1. During 20X4, Nordway purchased51,000 Playday doghouses for $32 each and sold 36,000 of them toOlman for $40 each. Olman sold 29,000 of the doghouses to retailestablishments prior to December 31, 20X4, for $55 each. Bothcompanies use perpetual inventory systems.a.Prepare all journal entries Nordway recorded for the purchaseof inventory and resale to Olman Company in 20X4. (If noentry is required for a transaction/event, select "No journal entryrequired" in the first account field.)-Record the purchase of inventory on account-Record the sales of the Playday doghouses-Record the cost of goods sold.b.Prepare the journal entries Olman recorded for the purchase ofinventory and resale to retail establishments in 20X4. (Ifno entry is required for a transaction/event, select "No journalentry required" in the first account field.)-Record the purchase of inventory onaccount.-Record the sales of the Playday doghouses-Record the cost of goods soldc.Prepare the worksheet consolidation entry(ies) needed inpreparing consolidated financial statements for 20X4 to remove theeffects of the intercompany sale. (If no entry is requiredfor a transaction/event, select "No journal entry required" in thefirst account field.)-Record the consolidation entry.