Reference no: EM13777977
Upstream and Downstream Sales
Pace Company owns 85% of the outstanding common stock of Sand Company and all the outstanding common stock of Star Company. During 2012, the affiliates engaged in intercompany sales as follows:
Sales of Merchandise
Pace to Sand $ 40,000
Sand to Pace 60,000
Sand to Star 75,000
Star to Pace 50,000
$225,000
The following amounts of intercompany profits were included in the December 31,
2011, and December 31, 2012, inventories of the individual companies:
Intercompany Profit in
December 31, 2011, Inventory of
Selling Company Pace Sand Star Total
Pace Company $7,000 $ 7,000
Sand Company $ 5,000 $3,000 8,000
Star Company 8,000 8,000
Total $13,000 $7,000 $3,000 $23,000
Intercompany Profit in
December 31, 2012, Inventory of
Selling Company Pace Sand Star Total
Pace Company $2,000 $ 2,000
Sand Company $ 6,000 $9,000 15,000
Star Company 4,000 4,000
Total $10,000 $2,000 $9,000 $21,000
Income from each company’s independent operations (including sales to affiliates) for the year ended December 31, 2012, is presented here:
Pace Company $200,000
Sand Company 150,000
Star Company 125,000
Required:
A. Prepare in general journal form the work paper entries necessary to eliminate intercompany sales and intercompany profit in the December 31, 2012, consolidated financial statements work paper.
B. Calculate the balance to be reported in the consolidated income statement for the following line items:
Consolidated income
Non controlling interest in consolidated income
Controlling interest in consolidated income
|
Calculate the total family net worth
: In 2000, in Country A, the average family net worth was $410,000, and there was about 6.1 x 10^7 families. Calculate the total family net worth Country A in 2000. Country A's total family net worth is what in dollars?
|
|
Overhead for the job of installing the irrigation system
: Water ways has two major public-park projects to provide with comprehensive irrigation in one of its service locations this month. Job J57 and Job K52 involve 15 acres of landscaped terrain which will require special-order sprinkler heads to meet the..
|
|
Themartinweight loss clinic maintains two patient files
: TheMartinWeight Loss Clinic maintains two patient files—one for male clients and one for female clients. Each record contains the name of a patient and current total weight loss in pounds. Each file is in descending weight loss order. Design the logi..
|
|
The amount that was invested in the mutual fund
: An investor invested a total of $2,600 in two mutual funds. One fund earned a 7% profit while the other a 3% profit. If the investor's total profit was $138, how much was invested in each mutual fund? The amount that was invested in the mutual fund t..
|
|
Upstream and downstream sales
: Pace Company owns 85% of the outstanding common stock of Sand Company and all the outstanding common stock of Star Company. Prepare in general journal form the work paper entries necessary to eliminate intercompany sales and intercompany profit in th..
|
|
The program write a program to analyze all integers
: Part 1: The Program Write a program to analyze all integers contained in two text files. Both text data input files will contain an unknown number of integers (in the range 1 - 999), separated by whitespace. There may be duplicate integers in the fil..
|
|
Generally considered to be non-value-added time
: Inspection Time is generally considered to be non-value-added time. Operating assets include cash, accounts receivable, and inventory but not any depreciable fixed assets.
|
|
Examine the differences between a linear and augmented line
: "Developing a Website" Please respond to the following: Examine the differences between a linear and augmented linear structure. Examine the differences between hierarchical and linear structures. Explain why a coherent structure is necessary. Provid..
|
|
What interest rate would this be a fair deal
: The Perpetual Life Insurance Co is trying to sell you an investment policy that will pay you and your heirs $11,707 per year forever. Suppose the Perpetual Life Insurance Co. told you the policy costs $198,190. At what interest rate would this be a f..
|