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On January 1 , Year 8 , Fazli Co . acquired all of the common shares of Gervais. Both companies had no inventory on hand
On January Year Fazli Co acquired all of the common shares of Gervais. Both companies had no inventory on hand at the beginning of the year. The following transactions occurred in January and February, Year : On January Gervais purchased $ of inventory from outsiders. On January Gervais sold $ of this inventory to Fazli for $ which represents a markup of over cost. On January Fazli sold $ of the inventory purchased from Gervais to outsiders for $ which represents a markup of over cost. On February Gervais purchased $ of inventory from outsiders. On February Gervais sold $ of inventory to Fazli for $ which represents a markup of over cost. On February Fazli sold $ of inventory purchased from Gervais to outsiders for $ which represents a markup of over cost. Fazli uses the cost method to account for its investment in Gervais. Both companies pay income tax at the rate of Gervais did not pay any dividends in Year Required: a Prepare income statements for January and February for Fazli, Gervais, and Consolidation. Break down cost of sales into its three components. Leave no cells blank be certain to enter wherever required. Values in the fourth column Adjust column that are to be deducted should be indicated with a minus sign. Input all other amounts as positive values. Round your final answers to nearest whole dollars. Omit $ sign in your response. Income Statements For January Year Fazli Gervais Adjust Consolidation Click to select $ $ $ $ Cost of sales Click to select Click to select Click to select Click to select Cost of sales Click to select Click to select Click to select $ $ $ Attributable to: Click to select $ Click to select $ Income Statements For February Year Fazli Gervais Adjust Consolidation Click to select $ $ $ $ Cost of sales Click to select Click to select Click to select Click to select Cost of sales Click to select Click to select Click to select $ $ $ Attributable to: Click to select $ Click to select $ b Now assume that Fazli uses the equity method to account for its investment in Gervais. What account would change on the three statements in January and what would be the account balance? Omit $ sign in your response. Click to select $ c Now assume that Fazli only owns of the common shares of Gervais and uses the cost method to account for its investment in Gervais. What accounts would change as compared to part a on the three statements in January and what would be the account balance? Omit $ sign in your response. Consolidated net income attributable to Fazli shareholders $ Consolidated net income attributable to NCI $ d Now assume that Gervais was the parent, Fazli was the subsidiary, and Gervais owned of Fazli. How would this change the allocation of consolidated net income for January? Omit $ sign in your response. Consolidated net income attributable to Gervais shareholders $ Consolidated net income attributable to NCI $
On January Year Fazli Co acquired all of the common shares of Gervais. Both companies had no inventory on hand at the beginning of the year. The following transactions occurred in January and February, Year :
On January Gervais purchased $ of inventory from outsiders.
On January Gervais sold $ of this inventory to Fazli for $ which represents a markup of over cost.
On January Fazli sold $ of the inventory purchased from Gervais to outsiders for $ which represents a markup of over cost.
On February Gervais purchased $ of inventory from outsiders.
On February Gervais sold $ of inventory to Fazli for $ which represents a markup of over cost.
On February Fazli sold $ of inventory purchased from Gervais to outsiders for $ which represents a markup of over cost.
Fazli uses the cost method to account for its investment in Gervais. Both companies pay income tax at the rate of Gervais did not pay any dividends in Year
Required:
a Prepare income statements for January and February for Fazli, Gervais, and Consolidation. Break down cost of sales into its three components. Leave no cells blank be certain to enter wherever required. Values in the fourth column Adjust column that are to be deducted should be indicated with a minus sign. Input all other amounts as positive values. Round your final answers to nearest whole dollars. Omit $ sign in your response.
Income Statements For January Year
Fazli Gervais Adjust Consolidation
Click to select
$
$
$
$
Cost of sales
Click to select
Click to select
Click to select
Click to select
Cost of sales
Click to select
Click to select
Click to select
$
$
$
Attributable to:
Click to select
$
Click to select
$
Income Statements For February Year
Fazli Gervais Adjust Consolidation
Click to select
$
$
$
$
Cost of sales
Click to select
Click to select
Click to select
Click to select
Cost of sales
Click to select
Click to select
Click to select
$
$
$
Attributable to:
Click to select
$
Click to select
$
b Now assume that Fazli uses the equity method to account for its investment in Gervais. What account would change on the three statements in January and what would be the account balance? Omit $ sign in your response.
Click to select
$
c Now assume that Fazli only owns of the common shares of Gervais and uses the cost method to account for its investment in Gervais. What accounts would change as compared to part a on the three statements in January and what would be the account balance? Omit $ sign in your response.
Consolidated net income attributable to Fazli shareholders $
Consolidated net income attributable to NCI $
d Now assume that Gervais was the parent, Fazli was the subsidiary, and Gervais owned of Fazli. How would this change the allocation of consolidated net income for January? Omit $ sign in your response.
Consolidated net income attributable to Gervais shareholders $
Consolidated net income attributable to NCI $
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