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15% Cost 5640 360 $720 480 and Son for the year ended Decem 2015 Sales Pop Som 2016 Sales-Sow to Pay REQUIRED: Prepare a corrected

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15% Cost 5640 360 $720 480 and Son for the year ended Decem 2015 Sales Pop Som 2016 Sales-Sow to Pay REQUIRED: Prepare a corrected consolidated income statement for her 31, 2016 PROBLEMS sales, noncontrolling interest) on at its book value of $3,600.000 and retained earnings of $1.000.000 luded merchandise acquired from Sun Git of 40 percent on all merchandise P5-1 Consolidated income and retained earnings (upstream sales, non Pom Cameration acquired its 90 percent interest in Sun Corporation at its be on January 1, 2016, when Sun had capital stock of $3,000,000 and retain The December 31, 2016 and 2017. inventories of Pam included merchand of $300.000 and $400,000, respectively. Sun realizes a gross profit of 40 percen sold. During 2016 and 2017. sales by Sun to Pam were $600,000 and 5 z sales by Sun to Pam were 000 and 5000.000, respective Summary adjusted trial balances for Pum and Su -December 31, 2011 thousands cember 31, 2017, follow (in Pam Sun $ Cash 200 500 1.000 4,800 Receivables-net Inventories Plant assets-net Investment in Sun-90% $ 1.000 2.000 2,400 2.500 4,356 8.000 3,400 1.000 $24.656 3,900 1.600 Cost of sales Other expenses Dividends 500 $ 12,500 Pam $ 1,500 $ 600 Accounts payable Other liabilities Capital stock, $10 par Retained earnings Sales Income from Sun Sun 900 600 3.000 1,500 6,500 5,000 3,692 13,000 864 S24.656 $12.500 REQUIRED: Prepare a combined consolidated income and retained earnings statem and Subsidiary for the year ended December 31, 2017. P 5-2 Computations (upstream sales) Pop Corporation acquired a 90 percent interest in Son Corporation al mercompany purchases and sales and inventory data for 2016, 2017, and 2018, are book value on January 1, 2016. 2017, and 2018, are as follows: Sales by Soni Intercompany Profit in Pop's Inyentory of Cost Unsold at Year End 2015 Sales-Pop to Son 2016 Sales-Son to Pop 2015 SalesPop to form Selling Price $720 480 so 360 REQUIRED: Prepare a corrected consolidated income statement for Pop and Son for the year ended De ber 31. 2016. PROBLEMS P 5-1 Consolidated income and retained earnings (upstream sales, noncontrolling interest) Pam Corporation acquired its 90 percent interest in Sun Corporation at its book value of $3.600.000 on January 1, 2016, when Sun had capital stock of $3,000,000 and retained earnings of $1.000.000 The December 31, 2016 and 2017, inventories of Pam included merchandise acquired from Sun of $300,000 and $400,000, respectively. Sun realizes a gross profit of 40 percent on all merchandise sold. During 2016 and 2017, sales by Sun to Pam were $600,000 and $800,000, respectively Summary adjusted trial balances for Perm and Sunot-December 31, 2017, follow.lin thousands): Pam Sun Cash $ 1,000 $ 200 Receivables-net 500 Inventories 400 .000 Plant assets-net 2,500 4.800 Investment in Sun90% 4,356 Cost of sales 8,000 3,900 Other expenses 3.400 1.600 Dividends 1,000 500 $24.656 $ 12,500 blin Sup mv. 2.000 $ Pam $ 1,500 600 5.000 3,692 13,000 Sun 900 600 Accounts payable Other liabilities Capital stock. $10 par Retained earnings Sales Income from Sun 3.000 1.500 6.500 $24.656 $12.500 704, REQUIRED: Prepare a combined consolidated income and retained earnings statement for Pam com and Subsidiary for the year ended December 31, 2017. 15% Cost 5640 360 $720 480 and Son for the year ended Decem 2015 Sales Pop Som 2016 Sales-Sow to Pay REQUIRED: Prepare a corrected consolidated income statement for her 31, 2016 PROBLEMS sales, noncontrolling interest) on at its book value of $3,600.000 and retained earnings of $1.000.000 luded merchandise acquired from Sun Git of 40 percent on all merchandise P5-1 Consolidated income and retained earnings (upstream sales, non Pom Cameration acquired its 90 percent interest in Sun Corporation at its be on January 1, 2016, when Sun had capital stock of $3,000,000 and retain The December 31, 2016 and 2017. inventories of Pam included merchand of $300.000 and $400,000, respectively. Sun realizes a gross profit of 40 percen sold. During 2016 and 2017. sales by Sun to Pam were $600,000 and 5 z sales by Sun to Pam were 000 and 5000.000, respective Summary adjusted trial balances for Pum and Su -December 31, 2011 thousands cember 31, 2017, follow (in Pam Sun $ Cash 200 500 1.000 4,800 Receivables-net Inventories Plant assets-net Investment in Sun-90% $ 1.000 2.000 2,400 2.500 4,356 8.000 3,400 1.000 $24.656 3,900 1.600 Cost of sales Other expenses Dividends 500 $ 12,500 Pam $ 1,500 $ 600 Accounts payable Other liabilities Capital stock, $10 par Retained earnings Sales Income from Sun Sun 900 600 3.000 1,500 6,500 5,000 3,692 13,000 864 S24.656 $12.500 REQUIRED: Prepare a combined consolidated income and retained earnings statem and Subsidiary for the year ended December 31, 2017. P 5-2 Computations (upstream sales) Pop Corporation acquired a 90 percent interest in Son Corporation al mercompany purchases and sales and inventory data for 2016, 2017, and 2018, are book value on January 1, 2016. 2017, and 2018, are as follows: Sales by Soni Intercompany Profit in Pop's Inyentory of Cost Unsold at Year End 2015 Sales-Pop to Son 2016 Sales-Son to Pop 2015 SalesPop to form Selling Price $720 480 so 360 REQUIRED: Prepare a corrected consolidated income statement for Pop and Son for the year ended De ber 31. 2016. PROBLEMS P 5-1 Consolidated income and retained earnings (upstream sales, noncontrolling interest) Pam Corporation acquired its 90 percent interest in Sun Corporation at its book value of $3.600.000 on January 1, 2016, when Sun had capital stock of $3,000,000 and retained earnings of $1.000.000 The December 31, 2016 and 2017, inventories of Pam included merchandise acquired from Sun of $300,000 and $400,000, respectively. Sun realizes a gross profit of 40 percent on all merchandise sold. During 2016 and 2017, sales by Sun to Pam were $600,000 and $800,000, respectively Summary adjusted trial balances for Perm and Sunot-December 31, 2017, follow.lin thousands): Pam Sun Cash $ 1,000 $ 200 Receivables-net 500 Inventories 400 .000 Plant assets-net 2,500 4.800 Investment in Sun90% 4,356 Cost of sales 8,000 3,900 Other expenses 3.400 1.600 Dividends 1,000 500 $24.656 $ 12,500 blin Sup mv. 2.000 $ Pam $ 1,500 600 5.000 3,692 13,000 Sun 900 600 Accounts payable Other liabilities Capital stock. $10 par Retained earnings Sales Income from Sun 3.000 1.500 6.500 $24.656 $12.500 704, REQUIRED: Prepare a combined consolidated income and retained earnings statement for Pam com and Subsidiary for the year ended December 31, 2017

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