This problem comes from Chapter 5 in Fundamentals of Advanced Accounting 7th Edition (Hoyle Schaefer Doupnik)

Need to get journal entries:

Journal entry 1.Prepare Entry *G to recognize upstream intra-entity inventory gross profit deferred from the previous year.

Journal entry 2.Prepare Entry *TA to return the equipment accounts to beginning book value based on historical cost.

Journal entry 3.Prepare Entry *C to adjust the parent retained earnings for the subsidiary's increase in book value.

Journal entry 4.Prepare Entry S to eliminate the stockholders' equity accounts of the subsidiary and recognize the noncontrolling interest.

Journal entry 5.Prepare Entry A to recognize the amount paid within acquisition price for buildings and the franchise agreement.

Journal entry 6. Prepare Entry I to eliminate the intra-entity income accrual.

Journal entry 7. Prepare Entry D to eliminate the intra-entity dividend transfers.

Journal entry 8. Prepare Entry E to remove the intra-entity inventory transfers made during the current year.

Journal entry 9. Prepare Entry TI to defer the intra-entity gross profit on the 2018 intra-entity inventory transfers.

Journal entry 10. Prepare Entry G to defer the intra-entity gross profit on the 2018 intra-entity inventory transfers.

Journal entry 11. Prepare Entry ED to remove the current year depreciation on the transferred item since its historical cost has been fully depreciated.

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