Virginia Corp. owned all of the voting common stock of Stateside Co. Both companies use the perpetual inventory method, and Virginia decided to use the partial equity method to account for this investment. During 2017, Virginia made cash sales of $400,000 to Stateside. The gross profit rate was 30% of the selling price. By the end of 2017, Stateside had sold 75% of the goods to outside parties for $420,000 cash.Prepare the consolidation entries that should be made at the end of 2017.
What will be an ideal response?
| Consolidation Entry TI | ||
| Sales | 400,000 | |
| Cost of Goods Sold | 400,000 | |
| Consolidation Entry G | ||
| Cost of Goods Sold | 30,000 | |
| Inventory | 30,000 | |
You might also like to view...
Under the ________, the court must examine the pro- and anticompetitive effects of a challenged restraint
A) Noerr doctrine B) rule of reason C) per se rule D) consent decree
Dividend payments made to owners under equity financing are tax deductible, whereas interest payments on debt securities are not
Indicate whether the statement is true or false
The dividend payout ratio is equal to the dividend per share divided by the earnings per share.
Answer the following statement true (T) or false (F)
After an airplane arrives at its gate and passengers disembark, it is cleaned, restocked with food and beverages and refueled by maintenance workers before the next set of passengers board and the airplane departs on its next flight. The activities performed by maintenance workers to prepare the airplane for its next flight is part of which section of the service blueprint?
A. Audience actions B. Backstage contact employee actions C. Customer actions D. Onstage contact employee actions E. Support processes