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Question 3 (30 points) Rock Company acquired 90% of Soft Co. In 2019. During 2020, Rock purchased 3.000 units of inventary for $100 cach far
Question 3 (30 points) Rock Company acquired 90% of Soft Co. In 2019. During 2020, Rock purchased 3.000 units of inventary for $100 cach far cash and sold 2.000 units of them Soft for $150 cach for cash. Saft Ca. sold 1,500 units of these units to others for $200 cach for cash. Both companies use perpetual inventory system Required: a) Give journal entries Ruck Company recorded for the purchase of inventory and resale to Soft Company in 2020. (9 points) bj Give journal entries Soft Company recorded for the purchase of inventury and resale to others In 2020 19 points) c) Prepare the climination entry needed to remove the effect of the intercompany transactions. (12 points) Course Tille: Advanced Financial Accounting Caree Code: ACT 480 4 Page
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