Camille, Inc., sold $147,000 in inventory to Eckerle Company during 2020 for $245,000. Eckerle resold $109,000 of this merchandise in 2020 with the remainder to be disposed of during 2021. Assuming that Camille owns 34 percent of Eckerle and applies the equity method, what journal entry is recorded at the end of 2020 to defer the intra-entity gross profit?
Q: On January 2, 2019, Ulrich Co. purchased 75% of the outstanding shares of Neil Co. resulting to a…
A: The consolidated income includes the net income of the parent plus the share of the parent in the…
Q: ABC owns 80% interest of DEF Company and at December 31, 2021, ABC's investment in DEF under the…
A: The calculation of non controlling interest in net income of DEF is shown hereunder : ABC acquired…
Q: Shark Company purchased inventory from Dolphin Corporation for P120,000 on October 4, 2020, and…
A: Consolidated Sales is the total sales of the group less inter company sales Consolidated Sales =…
Q: Pit Corporation owns 90% of Stop Company's outstanding common stock. On 07/01/20, Pit sold inventory…
A: Journal entry: A journal entry is used to record day-to-day transactions of the business by debiting…
Q: On January 2, 2019, U Co. purchased 75% of the outstanding shares of N Co. resulting to a goodwill…
A: In the context of the given question, we are required to compute the non-controlling interest's net…
Q: Mug Company owns 80% of Spoon Corp.'s common stock. During October 2019 Spoon sold merchandise to…
A: The unrealized intercompany profit must be eliminated each year, reducing the interests of both…
Q: On January 1, 2021, Knight Corporation purchases all the outstanding shares of Craig Company for…
A: Since there are many requirements, we answer only three requirement as per our guidelines, if you…
Q: On January 2, 2019, U Co. purchased 75% of the outstanding shares of N Co. resulting to a goodwill…
A: Consolidation statement- Consolidated financial statements include the parent company's financial…
Q: Proform acquired 70 percent of ClipRite on June 30, 2020, for $910,000 in cash. Based on ClipRites…
A: The cost of a product to a distributor, producer, or retailer is known as the cost of goods sold…
Q: On December 31, 2019, Purple Company purchased 80% of the common stock of Sage Company for…
A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…
Q: Acker Inc. bought 40% of Howell Co. on January 1, 2020 for $576,000. The equity method of accounting…
A: Unrealized profit, December 31, 2020 = [($20,000 / $75,000) x $15,000] x 40% = $1,600
Q: On May 1, 2021, Jazzie Co. agreed to sell the assets of its Mister Division to Shawna Inc. for $80…
A: SOLUTION- LOSS FROM DISCONTINUED OPERATIONS IS A LINE ITEM IN INCOME STATEMENT OF A COMPANY BELOW…
Q: On April 1, 2021, BBC Co. acquired a 30% stake in LTI Inc. for $ 100,000. This amount includes $…
A: Consolidated Income Statement: It can be referred to as an income statement prepared by the parent…
Q: On January 2, 2019, Upo Co. purchased 75% of the outstanding shares of Napa Co. resulting to a…
A: In the context of the given question, we need to compute the total realized gross profit from the…
Q: Parkette, Inc., acquired a 60 percent interest in Skybox Company several years ago. During 2017,…
A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS Cost of Goods Sold is the value of costs that are…
Q: Alex, Inc., buys 30 percent of Steinbart Company on January 1, 2020, for $762,000. The equity method…
A: Introduction: Money earned from stock dividends is referred to as equity income. A dividend is…
Q: Determine the consolidated net income for 2020.
A: Consolidated net income is the net income which has been actually earned by the company when the…
Q: RAM, Inc., acquired a 60 percent interest in LMU Company several years ago. During 2017, LMU sold…
A: Cost of Goods Sold - It the value of costs which are incurred in the transacting sales of goods or…
Q: ansa Co. acquired 60% interest in Arya on January 1, 2025 for $46,800 when Arya's net assets had a…
A: Consolidated Financial statements : When a company invests in another company for more than…
Q: Emad LLC's Income Statement shows OMR 102,600 profit for the year 2020. The following information…
A: Taxable income is the profit which is taxable during the year. It is calculated by adding all…
Q: Partner, Inc. owns 80% of Senior, Inc. During 2020, Partner sold goods with a 40% gross profit to…
A: Answer: B. Sales and cost of goods sold should be reduced by the intercompany sales.
Q: Emad LLC's Income Statement shows OMR 102,600 profit for the year 2020. The following information…
A: Tax is a liability that has to be calculated on the income earned and paid to the government.
Q: Shark Company purchased inventory from Dolphin Corporation for P120,000 on October 4, 2020, and…
A: Consolidated Statement: It is a financial statement, which present the all income ,expenses, assets…
Q: verstated by P4,500 and equipment with a remaining 5 year life on the purchase date which was…
A: To find the Non-controlling interest's share as,
Q: Parkette, Inc., acquired a 60 percent interest in Skybox Company several years ago. During 2017,…
A: Consolidated financial statements: When an investor company holds above 50% in the outstanding stock…
Q: Clampett, Inc. converted to an S corporation on January 1, 2021. At that time, Clampett, Inc. had…
A: When you sell shares or other taxable investment assets, the capital gains or profits are referred…
Q: ABC Corp. acquired a 60% interest in DEF on January 1, 2021 for P468,000 when DEF's net assets had a…
A: The question is multiple choice question Required Choose the Correct Option.
Q: Phast Corporation owns a 80% interest in Stechno Company, acquired several years ago at a cost equal…
A: THE PARENT COMPANY BALANCE IS ADDED TO THE SUBSIDIARY'S BALANCE BUT ANY UNREALIZED PROFIT REMAINING…
Q: What is the consolidation worksheet entry required to be made at the end of 2020 for the unrealized…
A: Sales done in 2020 by Finger is $80,000.
Q: On January 1, 2020, the Stew Corporation purchased equity securities to be held for trading purposes…
A: It is pertinent to note that trading securities are always measured at fair value through profit and…
Q: Rainbow Corp. and Trout Co. are related for tax purposes. Rainbow operates as a retail outlet and…
A: Given: Rainbow operates as a retail outlet and Trout Co. operates as a wholesale unit. During 2020,…
Q: On January 2, 2019, Ulrich Co. purchased 75% of the outstanding shares of Neil Co. resulting to a…
A: A consolidated net revenue is the total income of a parent organization and its subsidiaries less…
Q: At the beginning of 2020, Best Inc. has two assets in Class 10. The cost of each asset was $72,000…
A: Step 1 Deposition of assets over the opening UCC balance leads to increase or decrease in net…
Q: Jellicent Corporation is an 80% owned subsidiary of Frilish Corporation. During 2018, Jellicent sold…
A: solution given % holding in Jellicent 80% unrealized profit at December 31, 2018 on sales…
Q: On May 1, 2021, Jazzie Co. agreed to sell the assets of its Mister Division to Shawna Inc. for $80…
A: Particulars Amount in Millions a) Pre-tax loss from discontinued operations (10) b) Loss…
Q: Tiberend, Inc., sold $150,000 in inventory to Schilling Company during 2017 for $225,000. Schilling…
A: Gross Profit Gross profit is refer as the profit of the company which are calculated by deducting…
Q: Parkette, Inc., acquired a 60 percent interest in Skybox Company several years ago. During 2020,…
A: Unrealized Profit Upto 31/12/2020 Profit from Intra Activity = (110,000 -90,200) = 19,800 Closing…
Q: On January 2, 2019, Upo Co. purchased 75% of the outstanding shares of Napa Co. resulting to a…
A: Consolidation refers to the method under which two or more smaller companies merge into the large…
Q: Josie Inc was a C Corporation from January1, 2016 through Deceber 31, 2019 . At December 31,2019…
A: The amount on the revenue that is earned by an individual or any person paid to government is called…
Q: Camille, Inc., sold $130,000 in inventory to Eckerle Company during 2020 for $250,000. Eckerle…
A: The equity method is used to record the profit earned through its investment in another business.…
Q: Scarlet Company owns 80% of Tamara Corp.'s common stock. During October 2019 Tamara sold merchandise…
A: Unrealized profit is a kind of potential profit that existed in the books, generated from an…
Q: Razor Afternoon Co. owns 80% interest in Slice Morning Co. During 2019, Razor sold inventories…
A: Elimination entries refer to those journal entries that are made to simplify the consolidated…
Q: On January 1, 2021, the Oliswel Corporation purchased equity securities to be held for trading…
A: Investment in securities means where the company purchased the share or other securities of other…
Q: Alex, Inc., buys 40 percent of Steinbart Company on January 1, 2020, for $530,000. The equity method…
A: The calculation of gross profit rates for 2020 and 2021 has been made as follows:
Q: Claire Corporation owns 80% of Jerald, Inc. ordinary stock. During 2020, Claire sold Jerald for…
A: Claire Corporation owns 80% of Jerald, Inc. The intra-company sales would be eliminated from the sum…
Q: L Company owns 30% of S Company’s common stock which gives it the ability to apply significant…
A: Since the intra sales include transfer of goods costing $120,000 to parent corporation for $200,000…
Q: On January 1, 2018, Spark Corp. acquired a 40% interest in Cranston Inc. for $250,000. On that date,…
A: Journal is the book of original entry in which all of the financial transactions of the business are…
Q: Huge owns 25% of Small and at January 1, 2020 has a balance in its Investment in Small of $400,000.…
A: Huge owns 25% of Small and has a significant influence. The significant influence means power to…
Q: Wendy Marvel sold $260,000 of its inventory to Carla during 2021 for $400,000. Carla sold $300,000…
A: Calculation of intra entity gross profit Sales = $ 400000 Cost of goods sold= $ 260000 Gm% =…
Q: Rommel, Inc. acquired a 60% interest in Mikee Company several years ago. During 2020, Mikee sold…
A: Answer - Calculation of consolidated cost of sales - Particulars Amount Cost of sales of…
Camille, Inc., sold $147,000 in inventory to Eckerle Company during 2020 for $245,000. Eckerle resold $109,000 of this merchandise in 2020 with the remainder to be disposed of during 2021. Assuming that Camille owns 34 percent of Eckerle and applies the equity method, what
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Camille, Inc., sold $130,000 in inventory to Eckerle Company during 2020 for $250,000. Eckerle resold $89,000 of this merchandise in 2020 with the remainder to be disposed of during 2021. Assuming that Camille owns 20 percent of Eckerle and applies the equity method, what journal entry is recorded at the end of 2020 to defer the intra-entity gross profit? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.)Tiberend, Inc., sold $150,000 in inventory to Schilling Company during 2017 for $225,000. Schilling resold $105,000 of this merchandise in 2017 with the remainder to be disposed of during 2018. Assuming that Tiberend owns 25 percent of Schilling and applies the equity method, what journal entry is recorded at the end of 2017 to defer the intra-entity gross profit?Tally, Inc., sold $200,000 in inventory to Merna Company during 2015 for $250,000. Mernal resold $175,000 of this merchandise in 2015 with the remainder to be disposed of during 2016. Assuming that Tally owns 40 percent of Merna and applies the equity method, what journal entry is recorded at the end of 2015 to defer the unrealized gross profit?
- Camille, Incorporated, sold $147,000 in inventory to Eckerle Company during 2023 for $245,000. Eckerle resold $109,000 of this merchandise in 2023 with the remainder to be disposed of during 2024. Required: Assuming that Camille owns 34 percent of Eckerle and applies the equity method, what journal entry is recorded at the end of 2023 to defer the intra-entity gross profit? 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. 1.Record the entry at the end of 2023 to defer unrealized gross profit.Emad LLC's Income Statement shows OMR 102,600 profit for the year 2020. The following information are provided to arrive the taxable income. - The actual value of closing inventory was OMR 82,700, it is recorded as OMR 82,200. - Provision for bad debts of OMR 1,500 has been included to calculate the above profit. - The firm earned dividend income of OMR 12,000. Since, the dividend income is not taxable the accountant reduced same amount from business income. - The company invested OMR 20,000 in equity share during this year. - Depreciation of a pre-fabricated building worth of OMR 80,000 was charged at 4%. - Salary OMR 8800 was paid for 11 months was included to arrive at the profit. Accountant did not report the outstanding salary. - The firm incurred a loss of OMR 24,600 in the year 2015 out of which OMR 20,800 has been written off so far. - Donation paid to an approved trust OMR 4,200 which is less than 3% of gross income. - Bad debts of previous years OMR 1,500 recovered in this…L Company owns 30% of S Company’s common stock which gives it the ability to apply significant influence and thus uses the equity method of accounting for its investment. During 2020 L Company sold inventory costing $120,000 to S company for $200,000. Also during 2020 S company resold $85,000 of this inventory to third parties. What journal entry would L Company make at the end of 2020 to defer the intra-entity gross profit?
- Below is the net income of Anita Ferreri Instrument Co., a private corporation, computed under the three inventory methods using a periodic system. FIFO Average-Cost LIFO 2018 $26,000 $24,000 $20,000 2019 30,000 25,000 21,000 2020 28,000 27,000 24,000 2021 34,000 30,000 26,000 Instructions (Ignore tax considerations.) a. Assume that in 2021 Ferreri decided to change from the FIFO method to the average-cost method of pricing inventories. Prepare the journal entry necessary for the change that took place during 2021, and show net income reported for 2018, 2019, 2020, and 2021. b. Assume that in 2021 Ferreri, which had been using the LIFO method since incorporation in 2018, changed to the FIFO method of pricing inventories. Prepare the journal entry necessary to record the change in 2021 and show net income reported for 2018, 2019, 2020, and 2021.X Inc. owns 70% of Y Inc. During 2020, X Inc. sold inventory to Y for $10,000. Half of this inventory remained in Y's warehouse at year end. Y Inc. sold inventory to X Inc. for $5,000. 40% of this intentory remained in X's warehouse at year end. The gross profit percentage on sales is 20% for both companies. Unless otherwise stated, assume X Inc. uses the cost method to account for its investment in Y Inc. What effect (if any) would the unrealized profits on the above intercompany sales have on the non-controlling interest account on the consolidated balance sheet? There would be a decrease to the non-controlling interest account for the amount of $120 There would be a decrease to the non-controlling interest account for the amount of $80 There would be a decrease to the non-controlling interest account for the amount of $400 There would be no impact on the non-controlling interest account.On January 1, 2020, Ayayai Corporation purchased 20% of the common shares of Pina Company for $191,000. During the year, Pina earned net income of $71,000 and paid dividends of $17,750. Prepare the entries for Ayayai to record the purchase and any additional entries related to this investment in Pina Company in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit (To record purchase of stock.) (To record receipt of dividends.) (To record revenue.)
- On January 1, 2020, Pharoah Corporation purchased 40% of the common shares of Novak Company for $201,000. During the year, Novak earned net income of $77,000 and paid dividends of $19,250.Prepare the entries for Pharoah to record the purchase and any additional entries related to this investment in Novak Company in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit (To record purchase of stock.) (To record receipt of dividends.) (To record revenue.)Virginia Corp. owned all of the voting common stock of Stateside Co. Both companies use the perpetual inventory method, and Virginia decided to use the partial equity method to account for this investment. During 2020, Virginia made cash sales of $400,000 to Stateside. The gross profit rate was 30% of the selling price. By the end of 2020, Stateside had sold 75% of the goods to outside parties for $420,000 cash. Prepare journal entries for Virginia and Stateside to record the sales/purchases during 2020.Bloomfield Bakers accounts for its investment in Clor Confectionary under the equity method. Bloomfield carried the Clor investment at $150,650 and $165,150 at December 31, 2020, and December 31, 2021, respectively. During 2021 Clor recognized $75,250 of net income and paid dividends of $20,150. Assuming that Bloomfield owned the same percentage of Clor throughout 2021, its percentage ownership must have been: (Round your answer to the nearest whole percent): Multiple Choice 19%. 26%. 24%. 72%.