Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me on C,D & F Thank you! b. Calculate and organize the profits and losses on intercompany transactions and balances. begin{tabular}{|l|r|r|} hline Intercompany

Please help me on C,D & F Thank you!

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed b. Calculate and organize the profits and losses on intercompany transactions and balances. \begin{tabular}{|l|r|r|} \hline Intercompany profit on 1/1/22 & Downstream & Upstream \\ \hline Intercompany profit on 12/31/22 & 0 & 26600 \\ \hline \end{tabular} c. Compute the pre-consolidation Equity Investment account beginning and ending balances starting with the stockholders' equity of the subsidiary. Use a negative sign with your answer to indicate a reduction to net income. d. Reconstruct the activity in the parent's pre-consolidation Equity Investment T-account for the year of consolidation. \begin{tabular}{|l|r|l|} \hline & Equity Investment \\ \hline Equity Investment at 1/1/22 & 0 & 0 \\ \hline Net income & 0 & 0 Dividends \\ \hline BOY upstream inventory profits & 0 & 0 AAP amortization \\ \hline & 0 & 0 EOY upstream inventory profits \\ \hline Equity Investment at 12/31/22 & 0 & 0 \\ \hline \end{tabular} e. Independently compute the owners' equity attributable to the noncontrolling interest beginning and ending balances starting with the owners' equity of the subsidiary. Use a negative sign with your answer to indicate a reduction to net income. f. Independently calculate consolidated net income, controlling interest net income and noncontrolling interest net income. Use a negative sign with your answer to indicate a reduction to net income. g. Complete the consolidating entries according to the C-E-A-D-I sequence. b. Calculate and organize the profits and losses on intercompany transactions and balances. \begin{tabular}{|l|r|r|} \hline Intercompany profit on 1/1/22 & Downstream & Upstream \\ \hline Intercompany profit on 12/31/22 & 0 & 26600 \\ \hline \end{tabular} c. Compute the pre-consolidation Equity Investment account beginning and ending balances starting with the stockholders' equity of the subsidiary. Use a negative sign with your answer to indicate a reduction to net income. d. Reconstruct the activity in the parent's pre-consolidation Equity Investment T-account for the year of consolidation. \begin{tabular}{|l|r|l|} \hline & Equity Investment \\ \hline Equity Investment at 1/1/22 & 0 & 0 \\ \hline Net income & 0 & 0 Dividends \\ \hline BOY upstream inventory profits & 0 & 0 AAP amortization \\ \hline & 0 & 0 EOY upstream inventory profits \\ \hline Equity Investment at 12/31/22 & 0 & 0 \\ \hline \end{tabular} e. Independently compute the owners' equity attributable to the noncontrolling interest beginning and ending balances starting with the owners' equity of the subsidiary. Use a negative sign with your answer to indicate a reduction to net income. f. Independently calculate consolidated net income, controlling interest net income and noncontrolling interest net income. Use a negative sign with your answer to indicate a reduction to net income. g. Complete the consolidating entries according to the C-E-A-D-I sequence

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting concepts and applications

Authors: Albrecht Stice, Stice Swain

11th Edition

978-0538750196, 538745487, 538750197, 978-0538745482

More Books

Students also viewed these Accounting questions

Question

u = 5 j , v = 6 i Find the angle between the vectors.

Answered: 1 week ago

Question

=+ e. What happens to Oceanias real exchange rate?

Answered: 1 week ago