As a student of accounting, it is important to understand what triggers the preparation of consolidated financial statements. The statements can be consolidated across divisions, across international locations, and across multiple currencies.;Part 2A;Deliverable Length: 600 words;Analyze the financial statements of the company that you have already selected in Part 1 for intercompany and intracompany transactions.;Why do you think it is important to make entries to eliminate intercompany transactions?;What is the difference between intercompany and intracompany transactions?;Part 2B;Deliverable Length: 400 words;You just got hired to work as an accountant in the consolidations department of a multinational firm. Your boss comes to you and wants to see how much knowledge you have on consolidations. He says, ?I want you to prepare a report explaining the steps that go into preparing consolidated income statements and balance sheets.?;Please prepare the report for your boss.;Part 2C;Deliverable Length: 600 words;ABC Company owns 100% of XYZ Company. During the year, ABC Company sold $30,000 (cost) worth of inventory to XYZ Corporation for $60,000. At the end of the year, XYZ Company has all of the inventory on the books.;Please record the following;Record the entries on ABC books to record the sale and the cost of goods sold.;Record the entry on XYZ books to record the purchase of inventory from ABC.;Record the intercompany transaction.;Explain how failure to record this intercompany transaction will impact the consolidated financial statement.
Paper#80661 | Written in 18-Jul-2015Price : $25