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Problem 3.(30. polnts) (A) Pinta Company owns 90% of the common stock of Simplex Company, Simplex Company sells merchandise to Pinta Company at 25% shorecas
Problem 3.(30. polnts) (A) Pinta Company owns 90% of the common stock of Simplex Company, Simplex Company sells merchandise to Pinta Company at 25% shorecas During 2019 and 2020 such sales amounted to S700,000 and $1,100,000, respectively. At the end of each year, Pinte Company had in its inventory one- fourth of the amount of goods purchased from Simplex Company during that year Required Prepare, in genernl journal form, all entries necessary on the 12/31/2020 consolidated statements work paper to eliminate the effects of intercompany sales (B) Patsy Company sells merchandise to Simon Company at a markup of 10% of selling price. During 2019 and 2020 such sales amounted to 5300,000 und $450,000, respectively. At the end of each year, Simon Company had in its inventory one tenth of the amount of goods purchased from Patay Company during that year. Required Prepare, in general journal form, all entries necessary on the 12/31/2020 consolidated statements workpuper to chminate the effects of im
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