Harris Enterprises owns 100% of the outstanding stock of Staton Company.The following transactions occurred during 2X13:
a)Harris Enterprises sold inventory costing $2,750 on account to Staton Company for $3,800.As of year-end,the amount due had not been paid.Harris Enterprises and Staton Company use a perpetual inventory system.
b)Staton Company borrowed $8,000 from Harris Enterprises on December 31,2X13,and signed a 2-year note.
For each item,prepare the necessary intercompany elimination entry that is needed,if at all,in order to prepare a year-end consolidated balance sheet.Be certain to specifically identify whether an account is on the books of Harris Enterprises or Staton Company.

Question

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The Answer of Harris Enterprises owns 100% of the outstanding stock of Staton Company.The following transactions occurred during 2X13:
a)Harris Enterprises sold inventory costing $2,750 on account to Staton Company for $3,800.As of year-end,the amount due had not been paid.Harris Enterprises and Staton Company use a perpetual inventory system.
b)Staton Company borrowed $8,000 from Harris Enterprises on December 31,2X13,and signed a 2-year note.
For each item,prepare the necessary intercompany elimination entry that is needed,if at all,in order to prepare a year-end consolidated balance sheet.Be certain to specifically identify whether an account is on the books of Harris Enterprises or Staton Company.

Harris Enterprises Owns 100% of the Outstanding Stock of Staton