On January 2, 2021 Penn Company purchased 80% of the outstanding common shares of Senn Company.

E F G H 1 J L M N A B K 1 *Down Stream invenotry transaction 2 On January 2, 2021, Penn Company purchased 80% of the outstanding common shares of Senn Company. 3. During 2021, Penn Company sold merchandise that cost $2,700 to Senn Company for $3,600. 4 Senn Co. sold all but $600 of this merchandise to its customers for $3,700 on account. 5 Senn Co. reported net income of $3,000 and Planet reported separate operating income (excluding income from Senn Co.) of $5,000 during 2021. 6 7 Q1. Prepare eliminating (consolidation) entries for intercompany transactions on December 31, 2021. 8 Account Debit Credit Sales revenue 9 10 COGS 11 Inventory What is the consolidated net income? 12 13 14 Q2. 15 Answer: 16 17 18 Q3. 19 Answer: 20 21 04. 22 Answer: what is the net income attributable to NCI (NCI IN NI)? What is the Net Income attributable to controlling Interest (Controlling Interest Net Income)? 23 Bases on the information above, please complete the following worksheet. 24 Q5. 25 26 27 Consolidation Entries DR CR Penn Co. Senn Co. Consolidated 28 29 35,000 (22,500) (7,500) Income Statement Sales Less: COGS Othr expenses Income from Senn Co. Consolidated Net Income NCI in Net Income Controlling Interest in Net Income 10,000 (6,000) (1,000) 30 31 32 33 34 5,000 3,000 0 0 8,000 0 8,000 35 5,000 3,000 0 0 36 37 Balance sheet Inventory 7,000 5,000 12,000 38 39 40 41 42