Essay
Virginia Corp. owned all of the voting common stock of Stateside Co. Both companies use the perpetual inventory method, and Virginia decided to use the partial equity method to account for this investment. During 2012, Virginia made cash sales of $400,000 to Stateside. The gross profit rate was 30% of the selling price. By the end of 2012, Stateside had sold 75% of the goods to outside parties for $420,000 cash.
Prepare the consolidation entries that should be made at the end of 2012.
Correct Answer:
Verified
Correct Answer:
Verified
Q60: Walsh Company sells inventory to its subsidiary,
Q61: McGraw Corp. owned all of the voting
Q62: Stark Company, a 90% owned subsidiary of
Q64: Stark Company, a 90% owned subsidiary of
Q66: Gargiulo Company, a 90% owned subsidiary of
Q67: Pot Co. holds 90% of the common
Q68: Hambly Corp. owned 80% of the voting
Q69: Wilson owned equipment with an estimated life
Q70: On January 1, 2013, Pride, Inc. acquired
Q112: Patti Company owns 80% of the common