Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Holiday Bakery owns 60 percent of Farmco Products Company's stock. On January 1, 20X9, inventory reported by Holiday included 23,000 bags of flour purchased from

Holiday Bakery owns 60 percent of Farmco Products Company's stock. On January 1, 20X9, inventory reported by Holiday included 23,000 bags of flour purchased from Farmco at $18 per bag. By December 31, 20X9, all the beginning inventory purchased from Farmco Products had been baked into products and sold to customers by Holiday. There were no transactions between Holiday and Farmco during 20X9.

Both Holiday Bakery and Farmco Products price their sales at cost plus 50 percent markup for profit. Holiday reported income from its baking operations of $313,000, and Farmco reported net income of $263,000 for 20X9.

I am having trouble with the consolidation entries to remove the effects of the unrealized profit in beginning inventory the consolidation worksheet is as of December 31, 20X9. (Do not round intermediate calculations)

Please help me solve for DR- (Account names are also correct)

DR(debit receivable)

Investment in Farmco?

NCI in NA of Farmco ?

CR(credit receivable)

Cost of goods sold $138,000 (This number is correct)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems The Crossroads Of Accounting And IT

Authors: Donna Ulmer, Donna Kay, Ali Olia

1st Edition

0132132524, 9780132132527

More Books

Students also viewed these Accounting questions

Question

2. To store it and

Answered: 1 week ago