Reference no: EM131722668
Question 1 - On 1/1/2009 the Yoda company purchased all of the stock in the first order company at book value Yoda accounts for its investment in the first order using the initial value method and the first order doesn't pay dividends.
On 1/1/2011 yoda company purchased a truck for $80,000 this truck is expected to last 12 years And have a $2000 salvage value. Yoda uses straight line depreciation.
On 1/1/2014 the yoda company sold the truck to the first order company for $75,000. The first order believes the Truck will last 9 years and have a $3000 salvage value. The first order also uses straight line depreciation. The first order gave yoda a 1 year 5% note with principle and interest due 1/1/2015
1/1/2015 the first order paid off the note and interest
On 1/1/2018 the first order sold the truck to the obi-won company for $55000.
Unconsolidated income for yoda and the first order were as follows:
|
YODA
|
THE FIRST ORDER
|
|
2014
|
4E+05
|
43000
|
|
2015
|
4E+05
|
45000
|
|
2016
|
4E+05
|
48000
|
|
2017
|
4E+05
|
43000
|
|
2018
|
4E+05
|
55000
|
Required:
A) Determine yoda's annual depreciation expense for this truck
B) Make the journal entry yoda makes when it sells the truck to the first order
C) Make the journal entry the first order makes when it buys the truck from yoda
D) Determine the first order's annual depreciation expense for this truck
E) Make the necessary worksheet entries needed 12/31/14 connected with this truck
F) Determine 2014 consolidated income
G) Make the necessary worksheet entries needed 12/31/15 connected with this truck
H) Determine 2015 consolidated income
I) Determine 2016 consolidated income
J) Determine 2017 consolidated income
K) Make the journal entry the first order makes when it sells the truck in 2018
L) Make the necessary worksheet entries needed 12/31/18 connected with this truck
M) Determine 2018 consolidated income
Question 2 - On 1/1/2000 jack purchased 100% of the outstanding stock of jill at book value Jack accounts for its investment in jill using the initial value method and jill does not pay dividends.
On 10/1/16 jack sold merchandise to jill for $50,000 on credit the merchandise had cost jack $30000.
On 12/31/16 jill had not sold any of the inventory acquired from jack and had not paid off the accounts payable to jack.
In 2017 jill sold 80% of the merchandise acquired from jack for $48000 and paid off jack.
In 2018 jill sold the other 20% of the merchandise from jack for $19000.
Required:
a) Using perpetual inventory record jack's journal entry for the sale to jill
b) Using perpetual inventory record jill's purchase of inventory
c) Make any worksheet entries needed 12/31/16 due to this inventory transaction
d) Unconsolildated, jack reported income of $500000 and jill reported income of $80000 what was consolidated income in 2016?
e) Make any worksheet entries needed 12/31/17 due to the intra-company sale of inventory
f) Unconsolidated jack reported income of 650,000 and jill reported income of $90000 what was consolidated income in 2017?
g) Make any worksheet entries needed 12/31/2018 due to the intra-company sale of inventory
h) Unconsolidated jack reported income of $777000 and jill reported income of $101,000 what was consolidated income in 2018?
i) On january 1 2016 jack had unconsolidated retained earnings of $900,000 and consolidated retained earnings of $3,000,000. What was jack's unconsolidated and consolidated retained earnings on 12/31/16, 12/31/17 and 12/31/18? Note: jack also does not pay dividends.
Attachment:- Questions.rar