What journal entry would large make

Assignment Help Accounting Basics
Reference no: EM132869853

Question - Large Company owns 30% of Small Company's common stock which gives it the ability to apply significant influence and thus uses the equity method of accounting for its investment. During 2020 Large sold inventory costing $120,000 to Small for $200,000. Also during 2020 Small resold $85,000 of this inventory to third parties. What journal entry would Large make at the end of 2020 to defer the intra-entity gross profit?

Reference no: EM132869853

Questions Cloud

How much revenue will the business receive : Assume that the Pants Shop can purchase pants for $32 from a local factory; How much revenue will the business receive if 2,500 or 4.500 units are sold
Reluctant to move their IT to cloud : Why institutions might be reluctant to move their IT to the cloud. Consider a specific industry like education, medicine, military, etc.
Create package and deployment diagram : Typically, the current system is analyzed, and then requirements set for the new system based on that. Create package/deployment diagram.
Policy legal ethics-what is digital rights management : Why is intellectual property entitled to legal protection? Was Napster responsible for the actions of its users? What is Digital Rights Management?
What journal entry would large make : Small resold $85,000 of this inventory to third parties. What journal entry would Large make at the end of 2020 to defer the intra-entity gross profit
Cloud processing : What is the cloud? What does it do? Who are some of the dominant providers of cloud services? What are the different kinds of services available?
What is the company total debt : The firm has total assets of $2.8 million and net plant and equipment equals $2.3 million. What is the company total debt
What would be the value of total assets : A firm has total debt of $450,000, and debt/equity ratio of 60% (0.6). what would be the value of total assets
Prepare the journal entry for the conversion : Prepare the journal entry for the conversion of 500 of the bonds into common shares on August 1, 2023

Reviews

Write a Review

Accounting Basics Questions & Answers

  What nickel should at december

The fair values of its property were: December 31, 2020, $ 180,000 and December 31, 2021, $ 195,000. At December 31, 2021, Nickel should

  Prepare a balance sheet

prepare a Balance Sheet, given details attached below,  Acid Test Ratio : 2.5,  Current Ratio : 1.5, Net working capital Rs. 10, 00,000, Fixed Assets ?, Share holders fund Rs. 15, 00,000, Stock\ Inventory ?

  Working with segmented income statement

In which of the markets would you recommend that the company focus its advertising campaign? Show computations to support your answer.

  Prepare the appropriate journal entry for each transaction

Prepare the appropriate journal entry for each transaction or event during 2021, as well as any adjusting entries necessary at year-end

  What is the gain on sale of shares using FIFO approach

Purchased 80,000 shares, par P20, at P80 per share as long-term investment. What is the gain on sale of shares using FIFO approach

  What is Brenda deduction for Airfare

Because Brenda stayed with relatives while sightseeing, she only paid for 5 nights of lodging. What is Brenda's deduction for a. Airfare

  Prepares a change management plan using kurt lewin change

MusicZ, prepares a change management plan using Kurt Lewin's change model and devise a strategy to overcome employee resistance.

  Lantto air uses two measures of activity flights and

lantto air uses two measures of activity flights and passengers in the cost formulas in its budgets and performance

  Felicia amp freds executive board has asked you to change

felicia amp freds executive board has asked you to change the decision model previously completed to reflect the

  Compute how much will goldman report as cost of goods sold

Purchase returns and allowances8,400. Transportation-in11,000. How much will Goldman report as its cost of goods sold in its 2017 income statement?

  A manufacturing company that produces a single product has

1. james company has a margin of safety percentage of 20 based on its actual sales. the break-even point is 170000 and

  How ethical issues considered in making business decisions

How should ethical issues be considered in making business decisions? In other words, because ethical factors often cannot be measured

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd