Intercompany Sale of Merchandise

su OR Chapter 6 Assignment B - Word A david juno 7 - 0 X File Home Insert Tell me what you want to do Share % Cut e Copy Paste Format Painter Clipboard Design Layout References Mailings Times New R V 10.5 V A Aav B I U abe X, X* A - atyA Review E 3 View SE 15 Help E 21 -0. c code 11 Normal 11 No Spac... Heading 1 Heading 2 Title Subtitle Subtle Em... de Em... Find - ac Replace Select Editing V Font Paragraph www. Styles During the year ended December 31, 2019, Parent Company (the parent) sold merchandise to Subsidiary Corporation (a 90%-owned subsidiary) for a price of $30,550, at a markup of 30% of cost. Subsidiary sold merchandise acquired from Parent to outsider customers for $38.300 during 2019. Subsidiary's January 1, 2019, inventories were goods acquired from Parent at a billed price of $3,900 and included in Subsidiary's December 31, 2019, inventories were goods acquired from Parent at a billed price of $2,600. Prepare the working paper eliminating entry (in journal entry format) for the intercompany sale of merchandise for the year ended December 31, 2019. (11) Show how the working paper eliminating entry in part (1) adjusts cost of goods sold and ending inventory to the correct consolidated balances. Parent Subsidiary Adjustments & Eliminations Consolidated Debits Credits Cost of goods sold Inventory (111) How increase or decrease and the amount) is Parent's 2019 equity in income of Subsidiary affected by the intercompany sale of merchandise? Page 1 of 1 204 words DX 100% 1 Type here to search - + 10:07 PM 4/9/2020