Matching
For each of the following situations, select the correct entry that would be required on a consolidation worksheet.
Premises:
Upstream beginning intra-entity gross profit on inventory, using the initial value method of accounting.
Downstream beginning intra-entity gross profit on inventory, using the initial value method of accounting.
Upstream ending intra-entity gross profit on inventory, using the initial value method of accounting.
Downstream ending intra-entity gross profit on inventory, using the initial value method of accounting.
Upstream transfer of depreciable assets, in the period after transfer, where subsidiary recognizes a gain, using the initial value method of accounting.
Downstream transfer of depreciable assets, in the period after transfer, where parent recognizes a gain, using the initial value method of accounting.
Upstream transfer of land, in the period after transfer, where subsidiary recognizes a loss, using the initial value method of accounting.
Downstream transfer of land, in the period after transfer, where parent recognizes a loss, using the initial value method of accounting.
Eliminate income from subsidiary, recorded under the equity method of accounting.
Eliminate recorded amortization of acquisition-date fair value over book value, recorded under the equity method of accounting.
Responses:
Debit retained earnings
Credit retained earnings.
Debit investment in subsidiary.
Credit investment in subsidiary.
None of these answer choices are correct.
Correct Answer:
Premises:
Responses:
Upstream beginning intra-entity gross profit on inventory, using the initial value method of accounting.
Downstream beginning intra-entity gross profit on inventory, using the initial value method of accounting.
Upstream ending intra-entity gross profit on inventory, using the initial value method of accounting.
Downstream ending intra-entity gross profit on inventory, using the initial value method of accounting.
Upstream transfer of depreciable assets, in the period after transfer, where subsidiary recognizes a gain, using the initial value method of accounting.
Downstream transfer of depreciable assets, in the period after transfer, where parent recognizes a gain, using the initial value method of accounting.
Upstream transfer of land, in the period after transfer, where subsidiary recognizes a loss, using the initial value method of accounting.
Downstream transfer of land, in the period after transfer, where parent recognizes a loss, using the initial value method of accounting.
Eliminate income from subsidiary, recorded under the equity method of accounting.
Eliminate recorded amortization of acquisition-date fair value over book value, recorded under the equity method of accounting.
Premises:
Upstream beginning intra-entity gross profit on inventory, using the initial value method of accounting.
Downstream beginning intra-entity gross profit on inventory, using the initial value method of accounting.
Upstream ending intra-entity gross profit on inventory, using the initial value method of accounting.
Downstream ending intra-entity gross profit on inventory, using the initial value method of accounting.
Upstream transfer of depreciable assets, in the period after transfer, where subsidiary recognizes a gain, using the initial value method of accounting.
Downstream transfer of depreciable assets, in the period after transfer, where parent recognizes a gain, using the initial value method of accounting.
Upstream transfer of land, in the period after transfer, where subsidiary recognizes a loss, using the initial value method of accounting.
Downstream transfer of land, in the period after transfer, where parent recognizes a loss, using the initial value method of accounting.
Eliminate income from subsidiary, recorded under the equity method of accounting.
Eliminate recorded amortization of acquisition-date fair value over book value, recorded under the equity method of accounting.
Responses:
Related Questions
Q63: Describe the content of a journal entry
Q64: Why is a preliminary distribution of partnership
Q65: What should occur when a solvent partner
Q66: What is the purpose of a predistribution
Q67: What financial report would be prepared for
Q68: The partners of Donald, Chief & Berry
Q69: The partners of Donald, Chief & Berry
Q70: What events or circumstances might force the
Q71: What is a safe cash payment?
Q72: The Arnold, Bates, Carlton, and Delbert partnership
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents