Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Leveau, Inc. and Gillis Co. are related companies subject to consolidation. On 11/15/2X, Leveau, Inc. bought inventory from Gillis Co. for $200,000 cash that had

Leveau, Inc. and Gillis Co. are related companies subject to consolidation. On 11/15/2X, Leveau, Inc. bought inventory from Gillis Co. for $200,000 cash that had a cost of $30,000. Leveau, Inc. subsequently sold all that inventory to an unrelated third party during the year at a sales price of $300,000. The portion of the elimination entry at the time of consolidation to account for any required adjustment to the sales account would be:

Question 2 options:

a)

Debit to Sales of $200,000

b)

Credit to Sales of $200,000

c)

Debit to Sales of $100,000

d)

Credit to Sales of $100,000

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

Auditing A Risk Based Approach to Conducting a Quality Audit

Authors: Karla Johnstone, Audrey Gramling, Larry E. Rittenberg

10th edition

1305080572, 978-1305465664, 1305465660, 978-1305080577

More Books

Students also viewed these Accounting questions

Question

Give three explanations for the law of demand

Answered: 1 week ago