Pam Corporation holds 70 percent ownership of Spray Enterprises. On December 31, 20X6, Spray paid Pam...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66587d0543700_20566587d053ea67.jpg)
Transcribed Image Text:
Pam Corporation holds 70 percent ownership of Spray Enterprises. On December 31, 20X6, Spray paid Pam $ 40,000 for a truck that Pam had purchased for $ 45,000 on January 1, 20X2. The truck was considered to have a 15-year life from January 1, 20X2, and no residual value. Both companies depreciate equipment using the straight-line method. Required: a. Prepare the worksheet consolidation entry or entries needed on December 31, 20X6, 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. Pam Corporation holds 70 percent ownership of Spray Enterprises. On December 31, 20X6, Spray paid Pam $ 40,000 for a truck that Pam had purchased for $ 45,000 on January 1, 20X2. The truck was considered to have a 15-year life from January 1, 20X2, and no residual value. Both companies depreciate equipment using the straight-line method. Required: a. Prepare the worksheet consolidation entry or entries needed on December 31, 20X6, 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.
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Positive charge Q is uniformly distributed around a semicircle of radius a (Fig. 21.49). Find the electric field (magnitude and direction) at the center of curvature P.
-
What value is added to a product by retailers? What value is added by retailers for producers and ultimate consumers?
-
Lei Materials balance sheet lists total assets of $1 billion, $100 million in current liabilities, $400 million in long-term debt, $500 million in common equity, and 50 million shares of common...
-
Given: A) 2X+3Y-Z = 11 and B) 3X - Y + 2Z = 4, what would ensure that adding the two equations will eliminate z? Select one: Oa. Multiply equation B by 3. O b. Multiply equation A by (-1) and...
-
are not able to have a dedicated Information Technology department, within their organisation. Moreover, what are the risks to the organisation, for using other companies, to provide e-commerce...
-
1. A picth of Middle D (first harmonic = 294 Hz) is sounded out by a vibrating guitar string. The length of the string is 70.0 cm. Calculate the speed of the standing wave in the guitar string. 2. A...
-
3. Create a Python program to plot sin(x) and cos(x) on the same plot with different color lines for the domain -21 x 21. sangen A Plot of costx) and sin(x) W 1.00 0.75 0.50 0.25 0.00 -0.25 -0.50...
-
4.1: The cast iron magnetic core is shown in the figure has a cross-section area of 4 cm, length of 0.438 m and relative permeability of 400. The air gap has a length of 2 mm. The attached coil has...
-
What strategies can corporations employ to cultivate a culture of transparent and empathetic communication, thereby enhancing interdepartmental cohesion and fostering robust client relations ?
-
Find the lowest positive value of Y that gives A = 0.2, where: A = - COS 2 Give your answer correct to two decimal places in radians. dx
-
4. Suppose you have been shown a new programming language that allows you to express the following: Any single symbol in the English alphabet set {A, B,..., Z} is expressible. These are considered...
-
Explain why your decision in question 3 might be different if the business entity were a mediumsized limited company. Question 3 Discuss the extent to which you consider that accounts for a small...
-
Yuji Ijiri rejects decision usefulness as the main purpose of accounting and puts in its place accountability. Ijiri sees the accounting relationship as a tripartite one, involving the accountor, the...
-
Realised operating cash flows are only of use for internal management purposes and are irrelevant to investors. Discuss.
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App