oblem 6-2 Shell Company, an 85% owned subsidiary of Plaster Company, sells merchandise to Plaster Company at a markup of 20% of selling price. During 2014 and 2015, intercompany sales amounted to $464,500 and $357,400, respectively. At the end of 2014, Plaster had one-half of the goods that it purchased that year from Shell in its ending inventory. Plaster's 2015 ending inventory contained one-fifth of that year's purchases from Shell. There were no intercompany sales prior to 2014. Plaster had net income in 2014 of $772,000 from its own operations and in 2015 its independent income was $837,900. Shell reported net income of $298,900 and $330,000 for 2014 and 2015, respectively. (a) Your answer is partially correct. Try again. Prepare in general Journal form all entries necessary on the consolidated financial statement workpapers to eliminate the effects of the intercompany sales for each of the years 2014 and 2015. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not Indent manually. Round answers to 0 decimal places, e.g. 5,125.) Date Account Titles and Explanation Debit Credit 2014 TSales Purchases (To eliminate intercompany sales) inv (To eliminate unrealized intercompany profit in ending inventory) (10 ml de un dizu erupally profit in ending inventory) X 2015 (To eliminate intercompany sales) (To eliminate intercompany profit in ending inventory) (To recognize realization of intercompany profit in beginning inventory) Assume that Patten Company reports net income of $1,981,100 from its independent operations. Calculate controlling interest in consolidated net income. (Round answer to 0 decimal places, e.g. 5,125.) Controlling Interest in Consolidated Net Income 2351450 (c) Calculate controlling interest in consolidated income for 2015. (Round answer to 0 decimal places, e.g. 5,125.) Controlling interest in consolidated net income oblem 6-2 Shell Company, an 85% owned subsidiary of Plaster Company, sells merchandise to Plaster Company at a markup of 20% of selling price. During 2014 and 2015, intercompany sales amounted to $464,500 and $357,400, respectively. At the end of 2014, Plaster had one-half of the goods that it purchased that year from Shell in its ending inventory. Plaster's 2015 ending inventory contained one-fifth of that year's purchases from Shell. There were no intercompany sales prior to 2014. Plaster had net income in 2014 of $772,000 from its own operations and in 2015 its independent income was $837,900. Shell reported net income of $298,900 and $330,000 for 2014 and 2015, respectively. (a) Your answer is partially correct. Try again. Prepare in general Journal form all entries necessary on the consolidated financial statement workpapers to eliminate the effects of the intercompany sales for each of the years 2014 and 2015. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not Indent manually. Round answers to 0 decimal places, e.g. 5,125.) Date Account Titles and Explanation Debit Credit 2014 TSales Purchases (To eliminate intercompany sales) inv (To eliminate unrealized intercompany profit in ending inventory) (10 ml de un dizu erupally profit in ending inventory) X 2015 (To eliminate intercompany sales) (To eliminate intercompany profit in ending inventory) (To recognize realization of intercompany profit in beginning inventory) Assume that Patten Company reports net income of $1,981,100 from its independent operations. Calculate controlling interest in consolidated net income. (Round answer to 0 decimal places, e.g. 5,125.) Controlling Interest in Consolidated Net Income 2351450 (c) Calculate controlling interest in consolidated income for 2015. (Round answer to 0 decimal places, e.g. 5,125.) Controlling interest in consolidated net income
