Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

SELECTED EXERCISES - CHAPTER 6 Question 1 Pele Corporation purchased 95% of Soccer Company for $342,000 on January 1, 2009 when Soccer Corporation's retained earnings

image text in transcribed
SELECTED EXERCISES - CHAPTER 6 Question 1 Pele Corporation purchased 95% of Soccer Company for $342,000 on January 1, 2009 when Soccer Corporation's retained earnings were $140,000 On January 1, 2011 Pelc Corporation and Soccer Company reported the following equity account balances: Equity Item Common Stock Other Contributed Capital Retained Earnings Pele Corporation $300,000 80.000 240,000 Soccer Company $100,000 120,000 190.000 During the year 2011, Pele Corporation made intercompany sale of inventory to Soccer Company amounting to $280,000 with a margin of 20% on selling price The January 1, 2011 inventory of Soccer Company includes $16.000 of profit recorded by Pele Corporation on 2010 sales. The ending inventory of Soccer Company includes goods purchased for $60,000 from Pele Corporation during 2011 On December 31, 2011 Soccer Company reported net income of 56,000hand declared dividend of $38.000. Pele Corporation tises the cost method to record its investments in Soccer Company, Required Prepare, in general journal form, all workpaper eliminating entries necessary to consolidate the financial statements on December 31, 2011

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

Fundamental Accounting Principles Volume 2

Authors: John Wild, Ken Shaw, Barbara Chiappetta

21st Edition

0077716663, 978-0077716660

More Books

Students also viewed these Accounting questions

Question

Will you be able to pay your bills?

Answered: 1 week ago

Question

6. List and explain important trends in compensation management.

Answered: 1 week ago

Question

What are our strategic aims?

Answered: 1 week ago