Chapter 7 Homework Solutions part 2

Chapter 7 Homework Solutions part 2 - E7-6 (not...

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Unformatted text preview: E7-6 (not assigned)a.Inventory960,000 A/P (or cash)960,000 A/R (or cash)750,000 Sales revenue750,000 Cost of goods sold600,000 Inventory600,000 b.Inventory750,000 A/P (or cash)750,000 A/R (or cash)1,125,000 Sales revenue1,125,000 Cost of goods sold750,000 Inventory750,000 c.The consolidated entity should report:Sales (25k x $45)1,125,000 CoGS (25k x $24)600,000 Inventory (15k x $24)360,000 So the required eliminations are:Sales revenue750,000 Cost of goods sold750,000 E7-7a.Inventory960,000 A/P (or cash)960,000 A/R (or cash)750,000 Sales revenue750,000 Cost of goods sold600,000 Inventory600,000 b.Inventory750,000 A/P (or cash)750,000 A/R (or cash)810,000 Sales revenue810,000 Cost of goods sold540,000 Inventory540,000 c.The consolidated entity should report:Sales (18k x $45)810,000 CoGS (18k x $24)432,000 Inventory (22k x $24)528,000 So the required eliminations are:Sales revenue750,000 Inventory42,000 Cost of goods sold708,000 E7-8Units xCost =CoGSa.Karlow10,000 82 820,000 a.Draw7,000...
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Chapter 7 Homework Solutions part 2 - E7-6 (not...

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