LaTonia_Williamson_wk_4_Acc_hw(1)

LaTonia_Williamson_wk_4_Acc_hw(1) - Exercise 6-7 Part A...

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Exercise 6-7 Part A 2011 Sales 450,000 Purchases-COGS To eliminate intercompany sales Ending Inventory – Income Statement-COGS 25000 12/31 Inventory - BS To eliminate intercompany profit in ending inventory 2012 Sales 486,000 Purchases-COGS To eliminate intercompany sales Beginning Retained Earnings-Perkins 25,000 Beginning Inventory – Income Statement-COGS To recognize intercompany profit included in beginning inventory an consolidated retained earnings for unrealized intercompany profit at Ending Inventory – Income Statement-COGS 27,000 12/31 Inventory-BS To eliminate intercompany profit in ending inventory
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450,000 25000 486,000 25,000 d reduce beginning t the beginning of the year 27,000
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Exercise 6-8 2011 Sales Purchases-COGS Ending Inventory – Income Statement-COGS 12/31 Inventory-BS To eliminate intercompany profit in ending inventory 2012 Sales Purchases-COGS To eliminate intercompany sales 1/1 Retained Earnings-Perkins Company 1/1 Noncontrolling Interest Beginning Inventory – Income Statement-COGS To recognize intercompany profit in beginning inventory realiz Ending Inventory – Income Statement-COGS 12/31 Inventory-BS To eliminate intercompany profit in ending inventory
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450,000 450,000 25,000 25,000 486,000 486,000 21,250 3,750 25,000 zed during the year and reduce controlling and noncontrolling interest 27,000 27,000
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Exercise 7-7 Part A Sales Cost of Sales - Purchase Accounts Payable Accounts Receivable Cost of Sales - beg inv - income statement Inventory Beginning Retained Earnings - Price Cost of Sales-beg inv - income statement Beginning Retained Earnings-Price Noncontrolling Interest Property Plant and Equipment Accumulated Depreciation Depreciation Expense Beginning Retained Earnings-Price Noncontrolling Interest Part B Noncontrolling Interest in Consolidated Income
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100,000 100,000 17,500 17,500 4,000 4,000 5,000 5,000 4,400 1,100 5,500 2,200 1,100 880 220 8,220
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Exercise 7-11 Part A 2011 Sales 400,000 Equipment Cost of Sales Accumulated Depreciation (($90,000/9) 10,000 Depreciation Expense 2012 Cost Method or Partial Equity Method Beginning Retained Earnings – Pinta Co. 90,000 Equipment Accumulated Depreciation 20,000 Depreciation Expense Beginning Retained Earnings – Pinta Co. Complete Equity Method Investment in Standard Co. 90,000 Equipment Accumulated Depreciation 20,000 Depreciation Expense Investment in Standard Co. Part B Calculation of Controlling interest in Consolidated Net Income For Year Pinta Company’s net income from operations Less unrealized profit on 2011 sales of equipment to Standard Co. Plus profit on sales of equipment to Standard Company realized through depreciation in 2011 Pinta Company’s income from its independent operations that has been realized in transactions with third parties Income of Standard Company that has been realized in transactions with third parties Pinta Company’s share Controlling Interest in Consolidated Income - 2011
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90,000 310,000 10,000 90,000 10,000 10,000 90,000 10,000 10,000 r Ended Dec. 31, 2011 700,000 (90,000) h 10,000 620,000 250,000 x 80% 200,000
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This note was uploaded on 07/31/2011 for the course ACCT 401 taught by Professor Bennett during the Spring '08 term at Strayer.

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LaTonia_Williamson_wk_4_Acc_hw(1) - Exercise 6-7 Part A...

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