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Proud Company and Slinky Company both produce and purchase equipment for resale each period and...

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Proud Company and Slinky Company both produce and purchase equipment for resale each period and frequently sell to each other. Since Proud Company holds 60 percent ownership of Slinky Company, Proud's controller compiled the following information with regard to intercompany transactions between the two companies in 205 and 206 : Required: a. Prepare the consolidation entries required at December 31,206, to eliminate the effects of the inventory transfers in preparing a full set of consolidated financlal statements. (If no entry Is required for a transaction/event, select "No journal entry requlred" In the first account fleid.) A Record the entry to eliminate the beginning inventory profit of Proud Company. B Record the entry to eliminate the beginning inventory profit of Slinky Company. C Record the entry to eliminate the intercompany sale of inventory by Proud Company. D Record the entry to eliminate the intercompany sale of inventory by Slinky Company. Note: Enter debits before credits. b. Compute the amount of cost of goods sold to be reported in the consolidated income statement for 206. (Do not round intermediate calculations.)

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