Exercise 23-5 Oriole Corp. owns 75% of Sheffield Inc. Both companies are in the mining industry. During 202 Oriole Corp. purchased a building from Sheffield Inc. for $1,640. The building's original cost is $25,000 and its carrying amount in Sheffield Inc.'s financial statements is $1,200. Oriole's Contributed Surplus account contains a credit balance of $270 from previous related-party transactions. Sheffield's Contributed Surplus account is nil. There is no available independent evidence of the value of the building because it is a unique building in a remote part of the country. Oriole subsequently sold the building, during 2021, to an unrelated party for $1,890. Both Oriole and Sheffield follow ASPE. How would both Oriole and Sheffield record the purchase and sale of the building during 2020? (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Oriole Corp.: Account Titles and Explanation Debit Credit Sheffield Inc.: Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT Record the subsequent sale of the building by Oriole during 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Assume that the transaction is in the normal course of operations for both Oriole and Sheffield and that it has commercial substance. Record the journal entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Oriole Corp.: Account Titles and Explanation Debit Credit Sheffield Inc.: Account Titles and Explanation Debit Credit Oriole Corp. Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT Calculate the total impact on income of the purchase and sale of the building for 2020 and 2021 for the consolidated reporting unit of the two companies. What can you conclude from your calculation? Total income for 2020 and 2021 will v bvs Exercise 23-5 Oriole Corp. owns 75% of Sheffield Inc. Both companies are in the mining industry. During 202 Oriole Corp. purchased a building from Sheffield Inc. for $1,640. The building's original cost is $25,000 and its carrying amount in Sheffield Inc.'s financial statements is $1,200. Oriole's Contributed Surplus account contains a credit balance of $270 from previous related-party transactions. Sheffield's Contributed Surplus account is nil. There is no available independent evidence of the value of the building because it is a unique building in a remote part of the country. Oriole subsequently sold the building, during 2021, to an unrelated party for $1,890. Both Oriole and Sheffield follow ASPE. How would both Oriole and Sheffield record the purchase and sale of the building during 2020? (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Oriole Corp.: Account Titles and Explanation Debit Credit Sheffield Inc.: Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT Record the subsequent sale of the building by Oriole during 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Assume that the transaction is in the normal course of operations for both Oriole and Sheffield and that it has commercial substance. Record the journal entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Oriole Corp.: Account Titles and Explanation Debit Credit Sheffield Inc.: Account Titles and Explanation Debit Credit Oriole Corp. Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT Calculate the total impact on income of the purchase and sale of the building for 2020 and 2021 for the consolidated reporting unit of the two companies. What can you conclude from your calculation? Total income for 2020 and 2021 will v bvs
