60.1K

Verified Solution

Link Copied!

Planner Corporation owns 60 percent of Schedule Company's voting shares. During 20X3, Planner produced 29,000 computer desks at a cost of $90 each and sold 14,000 of them to Schedule for $102 each. Schedule sold 9,000 of the desks to unaffiliated companies for $138 each prior to December 31, 20X3, and sold the remainder in early 20X4 for $148 each. Both companies use perpetual inventory systems.

c. Prepare the worksheet consolidation entry or entries needed in preparing consolidated financial statements at December 31,203, relating to the intercorporate sale of inventory. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Consolidation Worksheet Entries Record the consolidation entry for the intercorporate sale of inventory. Note: Enter debits before credits. d. Prepare the worksheet consolidation entry or entries needed in preparing consolidated financial statements at December 31, 20X4, relating to the intercorporate sale of inventory. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Consolidation Worksheet Entries Record the consolidation entry for the intercorporate sale of inventory. Note: Enter debits before credits: Planner Corporation owns 60 percent of Schedule Company's voting shares. During 20X3, Planner produced 29,000 computer desks at a cost of $90 each and sold 14,000 of them to Schedule for $102 each. Schedule sold 9,000 of the desks to unaffiliated companies for $138 each prior to December 31,203, and sold the remainder in early 204 for $148 each. Both companies use perpetual inventory systems. Required: a. What amounts of cost of goods sold did Planner and Schedule record in 203? b. What amount of cost of goods sold must be reported in the consolidated income statement for 203 ? Note: Do not round intermediate calculations

Answer & Explanation Solved by verified expert

See Answer