1) The following intercompany transactions occurred during the year: (5 Marks)<\/p>\n
a) Parent loaned $ _____ to Subsidiary. To keep things simple, assume that there is no interest revenue or interest expense associated with this loan. <\/p>\n
b) Parent made a sale to Subsidiary for $ ______ cash. The inventory had originally cost Parent $ ____. Subsidiary then sold that same inventory to an outsider for $ _______.<\/p>\n
c) Parent made a sale to Subsidiary for $_____ cash. The inventory had originally cost Parent $____. Subsidiary has not yet sold that same inventory to an outsider. <\/p>\n
What consolidation worksheet entries would you make?<\/p>\n
Note: Assume you own figures wherever required.<\/p>\n
2) Suntop Corporation is an 80% owned subsidiary of PentopCorporation, acquired for $ 240,000 on January 1, 2021. (6 Marks)<\/p>\n
\u2022 Investment Cost was equal to book value and fair value.\u2022 Suntop\u2019s net income in 2021 was $ 60,000 and Pentop\u2019sincome, excluding its income from Suntop, was 80,000.\u2022 Pentop\u2019s income includes a $ 12,000 unrealized gain on land that cost $ 42,000 and was sold to Suntop for $ 54,000.\u2022 Assume that Suntop sold the land in 2023 for $ 60,000. \u2022 Assume Pentop adjust for this transaction in the equity accounts. <\/p>\n
Required: <\/p>\n
1) What Entries would Pentop make in 2021 and 2023?<\/p>\n
2) Prepare the Consolidation Entries at December 31, 2021, December 31, 2022 and December 31, 2023. <\/p>\n
3) Exchange rates change because of a number of economic factors affecting the supply of and demand for a nation\u2019s currency. What are the factors that cause change in exchanges rates of currency of a country? State and Explain any four of these factors. (4 Marks)<\/p>\n","protected":false},"excerpt":{"rendered":"
1) The following intercompany transactions occurred during the year: (5 Marks) a) Parent loaned $ _____ to Subsidiary. To keep things simple, assume that there is no interest revenue or interest expense associated with this loan. b) Parent made a sale to Subsidiary for $ ______ cash. The inventory had originally cost Parent $ ____. […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","template":"","meta":[],"disciplines":[183],"paper_types":[],"tagged":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/questions\/1355"}],"collection":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/questions"}],"about":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/types\/questions"}],"author":[{"embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/comments?post=1355"}],"version-history":[{"count":0,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/questions\/1355\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/media?parent=1355"}],"wp:term":[{"taxonomy":"disciplines","embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/disciplines?post=1355"},{"taxonomy":"paper_types","embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/paper_types?post=1355"},{"taxonomy":"tagged","embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/tagged?post=1355"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}