Flintstone Inc.acquired all of Rubble Co.on January 1, 2018.Flintstone decided to use the initial value method to account for this investment.During 2018, Flintstone sold to Rubble for $600,000 inventory with a cost of $500,000.At the end of the year 30% of the goods were still in Rubble's inventory.
Required:
Prepare Consolidation Entry TI for the intra-entity transfer and Consolidation Entry G for the ending inventory adjustment necessary for the consolidation worksheet at 12/31/20.

Question

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The Answer of Flintstone Inc.acquired all of Rubble Co.on January 1, 2018.Flintstone decided to use the initial value method to account for this investment.During 2018, Flintstone sold to Rubble for $600,000 inventory with a cost of $500,000.At the end of the year 30% of the goods were still in Rubble's inventory.
Required:
Prepare Consolidation Entry TI for the intra-entity transfer and Consolidation Entry G for the ending inventory adjustment necessary for the consolidation worksheet at 12/31/20.