Piu Co.owns 100% of Xu Co.Piu has owned Xu since Xu was incorporated.At December 31, $15,000 of Xu's accounts receivable represent amounts payable by Piu.$10,000 of Piu's accounts receivable represent amounts payable by Xu.During the current year, Xu sold $10,000 in merchandise to Piu (at cost its cost of $10,000).Piu has sold all the merchandise purchased from Xu.
Required:
Prepare the appropriate elimination entries necessary to prepare a consolidated balance sheet and income statement.

Question

Piu Co.owns 100% of Xu Co.Piu has owned Xu since Xu was incorporated.At December 31, $15,000 of Xu's accounts receivable represent amounts payable by Piu.$10,000 of Piu's accounts receivable represent amounts payable by Xu.During the current year, Xu sold $10,000 in merchandise to Piu (at cost its cost of $10,000).Piu has sold all the merchandise purchased from Xu.
  Required:
Prepare the appropriate elimination entries necessary to prepare a consolidated balance sheet and income statement.

Quizplus · Accepted Answer

The Answer of Piu Co.owns 100% of Xu Co.Piu has owned Xu since Xu was incorporated.At December 31, $15,000 of Xu's accounts receivable represent amounts payable by Piu.$10,000 of Piu's accounts receivable represent amounts payable by Xu.During the current year, Xu sold $10,000 in merchandise to Piu (at cost its cost of $10,000).Piu has sold all the merchandise purchased from Xu.
  Required:
Prepare the appropriate elimination entries necessary to prepare a consolidated balance sheet and income statement.

Piu CoOwns 100% of Xu Co