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(A) Pinta Company owns 90% of the common stock of Simplex Company. Simplex Company sells merchandise to Pinta Company at 25% above cost. During 2019

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(A) Pinta Company owns 90% of the common stock of Simplex Company. Simplex Company sells merchandise to Pinta Company at 25% above cost. During 2019 and 2020 such sales amounted to $700,000 and $1,100,000, respectively. At the end of each year, Pinta Company had in its inventory one-fourth of the amount of goods purchased from Simplex Company during that year. Required: Prepare, in general journal form, all entries necessary on the 12/31/2020 consolidated statements workpaper to eliminate the effects of intercompany sales. (B) Patsy Company sells merchandise to Simon Company at a markup of 30% of selling price. During 2019 and 2020 such sales amounted to $300,000 and $480,000, respectively. At the end of each year, Simon Company had in its inventory one-tenth of the amount of goods purchased from Patsy Company during that year. Required: Prepare, in general journal form, all entries necessary on the 12/31/2020 consolidated statements workpaper to eliminate the effects of intercompany sales. (A) Pinta Company owns 90% of the common stock of Simplex Company, Simplex Company sells merchandise to Pinta Company at 25% above cost. During 2019 and 2020 such sales amounted to $700,000 and $1,100,000, respectively. At the end of each year, Pinta Company had in its inventory one-fourth of the amount of goods purchased from Simplex Company during that year. Required: Prepare, in general joumal form, all entries necessary on the 12/31/2020 consolidated statements workpaper to eliminate the effects of intercompany sales. (B) Patsy Company sells merchandise to Simon Company at a markup of 30% of selling price. During 2019 and 2020 such sales amounted to $300,000 and $480,000, respectively. At the end of each year, Simon Company had in its inventory one-tenth of the amount of goods purchased from Patsy Company during that year. Required: Prepare, in general journal form, all entries necessary on the 12/31/2020 consolidated statements workpaper to eliminate the effects of intercompany sales

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