23. On January 1, 2011, Pride, Inc. acquired 80% of the outstanding voting
common stock of Strong Corp. for $364,000. There is no active market for Strong’s
stock. Of this payment, $28,000 was allocated to equipment (with a five-year life)
that had been undervalued on Strong’s books by $35,000. Any remaining excess
was attributable to goodwill which has not been impaired.
As of December 31, 2011, before preparing the consolidated worksheet, the
financial statements appeared as follows:
During 2011, Pride bought inventory for $112,000 and sold it to Strong for
$140,000. Only half of this purchase had been paid for by Strong by the end of the
year. 60% of these goods were still in the company’s possession on December 31.
What is the total of
consolidated revenues
?
24. On January 1, 2011, Pride, Inc. acquired 80% of the outstanding voting
common stock of Strong Corp. for $364,000. There is no active market for Strong’s
stock. Of this payment, $28,000 was allocated to equipment (with a five-year life)
that had been undervalued on Strong’s books by $35,000. Any remaining excess
was attributable to goodwill which has not been impaired.
As of December 31, 2011, before preparing the consolidated worksheet, the
financial statements appeared as follows:
During 2011, Pride bought inventory for $112,000 and sold it to Strong for
$140,000. Only half of this purchase had been paid for by Strong by the end of the
year. 60% of these goods were still in the company’s possession on December 31.
What is the total of
consolidated operating expenses
?
25. On January 1, 2011, Pride, Inc. acquired 80% of the outstanding voting
common stock of Strong Corp. for $364,000. There is no active market for Strong’s
stock. Of this payment, $28,000 was allocated to equipment (with a five-year life)
that had been undervalued on Strong’s books by $35,000. Any remaining excess
was attributable to goodwill which has not been impaired.
As of December 31, 2011, before preparing the consolidated worksheet, the
financial statements appeared as follows:
During 2011, Pride bought inventory for $112,000 and sold it to Strong for
$140,000. Only half of this purchase had been paid for by Strong by the end of the
year. 60% of these goods were still in the company’s possession on December 31.
What is the total of
consolidated cost of goods sold
?
26. On January 1, 2011, Pride, Inc. acquired 80% of the outstanding voting
common stock of Strong Corp. for $364,000. There is no active market for Strong’s
stock. Of this payment, $28,000 was allocated to equipment (with a five-year life)
that had been undervalued on Strong’s books by $35,000. Any remaining excess
was attributable to goodwill which has not been impaired.
As of December 31, 2011, before preparing the consolidated worksheet, the
financial statements appeared as follows:
During 2011, Pride bought inventory for $112,000 and sold it to Strong for
$140,000. Only half of this purchase had been paid for by Strong by the end of the
year. 60% of these goods were still in the company’s possession on December 31.
What is the consolidated total of
non-controlling interest
appearing in the balance
sheet?
27. On January 1, 2011, Pride, Inc. acquired 80% of the outstanding voting
common stock of Strong Corp. for $364,000. There is no active market for Strong’s
stock. Of this payment, $28,000 was allocated to equipment (with a five-year life)
that had been undervalued on Strong’s books by $35,000. Any remaining excess
was attributable to goodwill which has not been impaired.
As of December 31, 2011, before preparing the consolidated worksheet, the
financial statements appeared as follows:
During 2011, Pride bought inventory for $112,000 and sold it to Strong for
$140,000. Only half of this purchase had been paid for by Strong by the end of the
year. 60% of these goods were still in the company’s possession on December 31.
What is the consolidated total for
equipment (net)
at December 31, 2011?
28. On January 1, 2011, Pride, Inc. acquired 80% of the outstanding voting
common stock of Strong Corp. for $364,000. There is no active market for Strong’s
stock. Of this payment, $28,000 was allocated to equipment (with a five-year life)
that had been undervalued on Strong’s books by $35,000. Any remaining excess
was attributable to goodwill which has not been impaired.
As of December 31, 2011, before preparing the consolidated worksheet, the
financial statements appeared as follows:
During 2011, Pride bought inventory for $112,000 and sold it to Strong for
$140,000. Only half of this purchase had been paid for by Strong by the end of the
year. 60% of these goods were still in the company’s possession on December 31.
What is the consolidated total for
inventory
at December 31, 2011?
29. Strickland Company sells inventory to its parent, Carter Company, at a
profit during 2010. One-third of the inventory is sold by Carter in 2010.
In the consolidation worksheet for 2010, which of the following choices would be
a debit entry to eliminate the intra-entity transfer of inventory?
30. Strickland Company sells inventory to its parent, Carter Company, at a
profit during 2010. One-third of the inventory is sold by Carter in 2010.
In the consolidation worksheet for 2010, which of the following choices would be
a credit entry to eliminate the intra-entity transfer of inventory?
31. Strickland Company sells inventory to its parent, Carter Company, at a
profit during 2010. One-third of the inventory is sold by Carter in 2010.
In the consolidation worksheet for 2010, which of the following choices would be
a debit entry to eliminate unrealized intra-entity gross profit with regard to the
2010 intra-entity sales?
32. Strickland Company sells inventory to its parent, Carter Company, at a
profit during 2010. One-third of the inventory is sold by Carter in 2010.
In the consolidation worksheet for 2010, which of the following choices would be
a credit entry to eliminate unrealized intra-entity gross profit with regard to the
2010 intra-entity sales?
33. Strickland Company sells inventory to its parent, Carter Company, at a
profit during 2010. One-third of the inventory is sold by Carter in 2010.
In the consolidation worksheet for 2011, assuming Carter uses the initial value
method of accounting for its investment in Strickland, which of the following
choices would be a debit entry to eliminate unrealized intra-entity gross profit
with regard to the 2010 intra-entity sales?
34. Strickland Company sells inventory to its parent, Carter Company, at a
profit during 2010. One-third of the inventory is sold by Carter in 2010.
In the consolidation worksheet for 2011, assuming Carter uses the initial value
method of accounting for its investment in Strickland, which of the following
choices would be a credit entry to eliminate unrealized intra-entity gross profit
with regard to the 2010 intra-entity sales?
35. Walsh Company sells inventory to its subsidiary, Fisher Company, at a
profit during 2010. One-third of the inventory is sold by Walsh uses the equity
method to account for its investment in Fisher.
In the consolidation worksheet for 2010, which of the following choices would be
a debit entry to eliminate the intra-entity transfer of inventory?
36. Walsh Company sells inventory to its subsidiary, Fisher Company, at a
profit during 2010. One-third of the inventory is sold by Walsh uses the equity
method to account for its investment in Fisher.
In the consolidation worksheet for 2010, which of the following choices would be
a credit entry to eliminate the intra-entity transfer of inventory?
37. Walsh Company sells inventory to its subsidiary, Fisher Company, at a
profit during 2010. One-third of the inventory is sold by Walsh uses the equity
method to account for its investment in Fisher.
In the consolidation worksheet for 2010, which of the following choices would be
a debit entry to eliminate unrealized intra-entity gross profit with regard to the
2010 intra-entity sales?
38. Walsh Company sells inventory to its subsidiary, Fisher Company, at a
profit during 2010. One-third of the inventory is sold by Walsh uses the equity
method to account for its investment in Fisher.
In the consolidation worksheet for 2010, which of the following choices would be
a credit entry to eliminate unrealized intra-entity gross profit with regard to the
2010 intra-entity sales?
39. Walsh Company sells inventory to its subsidiary, Fisher Company, at a
profit during 2010. One-third of the inventory is sold by Walsh uses the equity
method to account for its investment in Fisher.
In the consolidation worksheet for 2011, which of the following choices would be
a debit entry to eliminate unrealized intra-entity gross profit with regard to the
2010 intra-entity sales?
40. Walsh Company sells inventory to its subsidiary, Fisher Company, at a
profit during 2010. One-third of the inventory is sold by Walsh uses the equity
method to account for its investment in Fisher.
In the consolidation worksheet for 2011, which of the following choices would be
a credit entry to eliminate unrealized intra-entity gross profit with regard to the
2010 intra-entity sales?
41. When comparing the difference between an upstream and downstream
transfer of inventory, and using the initial value method, which of the following
statements is true when there is a non-controlling interest?
42. When comparing the difference between an upstream and downstream
transfer of inventory, and using the initial value method, which of the following
statements is true when there is a non-controlling interest?