Reference no: EM13753974
The following intercompany transactions occurred during the year:
Parent loaned $200 to Sub. To keep things simple, assume that there is no interest revenue or interest expense associated with this loan.
Parent made a sale to Sub for $300 cash. The inventory had originally cost Parent $220. Sub then sold that same inventory to an outsider for $400.
Parent made a sale to Sub for $500 cash. The inventory had originally cost Parent $280. Sub has not yet sold that same inventory to an outsider. (Don’t forget equity method entry!)
Based on our “conceptual discussion,” what consolidation worksheet entries would you make?
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Sales-production-direct material and direct labor
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Amended and consequently created a past service cost
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What are the annual net cash inflows
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Interest revenue or interest expense associated with loan
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Using effective-interest amortization
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How much interest expense was incurred
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What is the journal entry for the conversion
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Gross profit method
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