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Prepare in general journal form all entries necessary in the consolidated financial statements

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solution


Question

Peer Company owns 80% of the common stock of Seacrest Company. Peer Company sells merchandise;to Seacrest Company at 25% above its cost. During 2011 and 2012 such sales;amounted to $265,000 and $475,000, respectively. The 2011 and 2012 ending inventories of;Seacrest Company included goods purchased from Peer Company for $125,000 and $170,000;respectively.;Peer Company reported net income from its independent operations (including intercompany;profit on inventory sales to affiliates) of $450,000 in 2011 and $480,000 in 2012.;Seacrest reported net income of $225,000 in 2011 and $275,000 in 2012 and did not declare;dividends in either year. There were no intercompany sales prior to 2011.;Required;A. Prepare in general journal form all entries necessary in the consolidated financial statements;workpapers to eliminate the effects of the intercompany sales for each of the years;2011 and 2012.;B. Calculate the amount of noncontrolling interest to be deducted from consolidated;income in the consolidated income statements for 2011 and 2012.;C. Calculate controlling interest in consolidated income for 2012.

 

Paper#20748 | Written in 18-Jul-2015

Price : $32
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