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need b and c please! Exercise 6-7 (Static) Sale of Inventory to Subsidiary LO 6-3 Planet Corporation acquired 90 percent of Saturn Company's voting shares
need b and c please!
Exercise 6-7 (Static) Sale of Inventory to Subsidiary LO 6-3 Planet Corporation acquired 90 percent of Saturn Company's voting shares of stock in 20X1. During 20X4, Planet purchased 40,000 Playday doghouses for $24 each and sold 25,000 of them to Saturn for $30 each. Saturn sold 18,000 of the doghouses to retail establishments prior to December 31,204, for $45 each. Both companies use perpetual inventory systems. Required: a. Prepare all journal entries Planet recorded for the purchase of inventory and resale to Saturn Company in 204. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. b. Prepare the journal entries Saturn recorded for the purchase of inventory and resale to retail establishments in 204. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Record the purchase of inventory. Note: Enter debits before cred ts. c. Prepare the worksheet consolidation entry(ies) needed in preparing consolidated financial statements for 20x4 to remove the effects of the intercompany sale. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Consolidation Worksheet Entries Record the consolidation entry. Note: Enter debits before creditsStep by Step Solution
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