Planner Corporation owns $60$ percent of Schedule Company's voting shares. During $20$X$3,$ Planner produced $25,000$ computer desks at a cost of $$82$ each and sold $10,000$ of them to Schedule for $$94$ each. Schedule sold $7,000$ of the desks to unaffiliated companies for $$130$ each prior to December $31,203,$ and sold the remainder in early $204$ for $$140$ each. Both companies use perpetual inventory systems.

Required:

a$.$ What amounts of cost of goods sold did Planner and Schedule record in $20$X$3?$

$\backslash$table$[[,\backslash$table$[[$Cost of Goods$],[$Sold$]]],[$Planner Corporation,$],[$Schedule Company,$]]$

b$.$ What amount of cost of goods sold must be reported in the consolidated income statement for $20$X$3?$

Note: Do not round intermediate calculations.

Cost of goods sold

c$.$ Prepare the worksheet consolidation entry or entries needed in preparing consolidated financial statements at December $31,203,$ relating to the intercorporate sale of inventory.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round intermediate calculations.

Consolidation Worksheet Entries

A

Record the consolidation entry for the intercorporate sale of inventory.

d$.$ Prepare the worksheet consolidation entry or entries needed in preparing consolidated financial statements at December $31,204,$ relating to the intercorporate sale of inventory.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round intermediate calculations.

Consolidation Worksheet Entries

A

Record the consolidation entry for the intercorporate sale of inventory.

Note: Enter debits before credits.

$\backslash$table$[[$Entry$,$Accounts,Debit,Credit$],[1,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$

e$.$ Prepare the worksheet consolidation entry or entries needed in preparing consolidated financial statements at December $31,204,$ relating to the intercorporate sale of inventory if the sales were upstream. Assume that Schedule produced the computer desks at a cost of $$82$ each and sold $10,000$ desks to Planner for $$94$ each in $203,$ with Planner selling $7,000$ desks to unaffiliated companies in $203$ and the remaining $3,000$ in $204.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round intermediate calculations.

Planner Corporation owns $60$ percent of Schedule Company's voting shares. During $20$X$3,$ Planner produced $25,000$ computer desks at a cost of $$82$ each and sold $10,000$ of them to Schedule for $$94$ each. Schedule sold $7,000$ of the desks to unaffiliated companies for $$130$ each prior to December $31,203,$ and sold the remainder in early $204$ for $$140$ each. Both companies use perpetual inventory systems.

Required:

a$.$ What amounts of cost of goods sold did Planner and Schedule record in $20$X$3?$

$\backslash$table$[[,\backslash$table$[[$Cost of Goods$],[$Sold$]]],[$Planner Corporation,$],[$Schedule Company,$]]$

b$.$ What amount of cost of goods sold must be reported in the consolidated income statement for $203?$

Note: Do not round intermediate calculations.

Cost of goods sold

c$.$ Prepare the worksheet consolidation entry or entries needed in preparing consolidated financial statements at December $31,203,$ relating to the intercorporate sale of inventory.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round intermediate calculations.

Consolidation

Worksheet Entries

A

Record the consolidation entry for the intercorporate sale of inventory.