Workpaper Journal Entries LO 6 LO 8
Pico Company, a truck manufacturer, owns 90% of the voting stock of Seward Company. On January 1, 2014, Pico Company sold trucks to Seward Company for $350,000. The trucks, which represented inventory to Pico Company, had a cost to Pico Company of $260,000. The management of Seward Company estimated that the trucks had a useful life of six years from the date of purchase. Seward Company uses the straight-line method to depreciate its capital assets.
In 2014, Pico Company reported $600,000 in net income from its independent operations (including sales to affiliates but excluding dividend or equity income from subsidiary), and Seward Company reported $200,000 in net income from its operations.
(1) The consolidated financial statements workpaper for the year ended December 31, 2014.
(2) The consolidated financial statements workpaper for the year ended December 31, 2015 .
Recently Asked Questions
- 1)The descriptive approach to problem solving looks at how groups actually solve problems and not how they should solve problems. True False 2)Group climate
- T/F question: no explanation needed. an ordinary annuity makes payments at the end of the period the value of a zero-coupon bond must always be greater than
- George Herbert Mead emphasized that the self is a product of