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The following data applies to Questions 5-8: Hunter Company and Moss Company both produce and purchase fabric for resale each period and frequently sell to

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The following data applies to Questions 5-8: Hunter Company and Moss Company both produce and purchase fabric for resale each period and frequently sell to each other. Since Hunter Company holds 80% ownership of Moss Company, Hunter's controller compiled the following information with regard to intercompany. transactions between the two companies in 207 and 20X8. Must show computations wherever applicable; otherwise, no credit will be given. Required: Give the consolidation elimination entries required at 12/31/208 to eliminate the effects of the inventory transfers in preparing a full set of consolidated financial statements. 5. Reversal of gross profit deferral on the 207 Downstream transfer: (15%) Dr. COMPUTATION: 6. Reversal of gross profit deferral on the 207 Upstream transfer: (15%) Dr. COMIPUATION: 7. Eliminate effects of the 20X8 Downstream transfer: (15%) Dr. COMPUTATION: Cr. 8. Eliminate effect of the 20X8 Upstream transfer: (15%) Dr. COMPUTATION: The following data applies to Questions 5-8: Hunter Company and Moss Company both produce and purchase fabric for resale each period and frequently sell to each other. Since Hunter Company holds 80% ownership of Moss Company, Hunter's controller compiled the following information with regard to intercompany. transactions between the two companies in 207 and 20X8. Must show computations wherever applicable; otherwise, no credit will be given. Required: Give the consolidation elimination entries required at 12/31/208 to eliminate the effects of the inventory transfers in preparing a full set of consolidated financial statements. 5. Reversal of gross profit deferral on the 207 Downstream transfer: (15%) Dr. COMPUTATION: 6. Reversal of gross profit deferral on the 207 Upstream transfer: (15%) Dr. COMIPUATION: 7. Eliminate effects of the 20X8 Downstream transfer: (15%) Dr. COMPUTATION: Cr. 8. Eliminate effect of the 20X8 Upstream transfer: (15%) Dr. COMPUTATION

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