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1. Pants Company and Shirt Company both produce and purchase fabric for resale each period and frequently sell to each other. Since Pants Company holds

1. Pants Company and Shirt Company both produce and purchase fabric for resale each period and frequently sell to each other. Since Pants Company holds 80 percent ownership of Shirt Company, Pants' controller compiled the following information with regard to intercompany transactions between the two companies in 20X7 and 20X8:
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1. Pants Company and Shirt Company both produce and purchase fabric for resale each period and frequently sell to each other. Since Pants Company holds 80 percent/ownership of Shirt Company, Pants' controller compiled the following information with regard to intercompany transactions between the two companies in 207 and 20X8 : a. Give the consolidating entries required at December 31,207, to eliminate the effects of the inventory transfers in preparing a full set of consolidated financial statements. b. Give the consolidating entries required at December 31,20X8, to eliminate the effects of the inventory transfers in preparing a full set of consolidated financial statements. 2. Pie Company acquired 75 percent of Strawberry Company's stock at the underlying book value on January 1,20X8. At that date, the fair value of the noncontrolling interest was equal to 25 percent of the 1. Pants Company and Shirt Company both produce and purchase fabric for resale each period and frequently sell to each other. Since Pants Company holds 80 percent/ownership of Shirt Company, Pants' controller compiled the following information with regard to intercompany transactions between the two companies in 207 and 208 : a. Give the consolidating entries required at December 31,20X7, to eliminate the effects of the inventory transfers in preparing a full set of consolidated financial statements. b. Give the consolidating entries required at December 31,20X8, to eliminate the effects of the inventory transfers in preparing a full set of consolidated financial statements

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