Question
. 1 Prepare Entry *G to remove the intra-entity gross profit from the beginning account balances. 2 Prepare Entry *TA to adjust the equipment balance
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1 Prepare Entry *G to remove the intra-entity gross profit from the beginning account balances.
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2 Prepare Entry *TA to adjust the equipment balance to the original cost and to adjust the accumulated depreciation to the consolidated January 1, 2018 balance.
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3 Prepare Entry S to eliminate the subsidiary's stockholders' equity accounts and to recognize the noncontrolling interest balance as of January 1, 2018.
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4 Prepare Entry A to recognize acquisition-date fair value allocations adjusted for 2 years of amortization.
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5 Prepare Entry I to remove the parent's equity method income.
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6 Prepare Entry E to recognize 2018 excess amortization.
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7 Prepare Entry TI to eliminate the intra-entity inventory tranfers during 2018.
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8 Prepare Entry G to remove the intra-entity gross profit from the ending account balances.
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9 repare Entry ED to eliminate the excess depreciation on equipment recorded at transfer price.
- Note : = journal entry has been entered
Consolidation Worksheet Entries
- Prepare Entry *G to remove the intra-entity gross profit from the beginning account balances.
Note: Enter debits before credits.
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