6. Prepare journal entries to recognize the intercompany transactions and eliminations identified in Schedule 6. Any supporting calculations should be included.

Schedule 6 intercompany Transactions intercompany Sales -1Q12 Java the Hut coffee bean sales to New Castle Coffee $ 1s.soo intercompany Inventory - as of 03/31/12 Coffee bean inventory from Java the Hut sales to New Castle Coffee at 03/31/11. 3.soo Equity investment - Newark Coffee Earnings Earnings reported by Newark Coffee for the first quarter of 2012 were 1 $ 10.2so