1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Shtirlitz [24]
2 years ago
12

Company Pea owns 90 percent of Company Essone which in turn owns 80 percent of Company Esstwo. Company Esstwo owns 100 percent o

f Company Essthree. Consolidated financial statements should be prepared to report the financial status and results of operations for:
Business
1 answer:
ankoles [38]2 years ago
8 0

Answer:

Company Pea

Consolidated financial statements should be prepared to report the financial status and results of operations for:

Essone - 90%

Esstwo = 72% (90% x 80%)

Essthree = 72% (90% x 80% x 100%)

Explanation:

Company Pea is described as the holding or parent company of Company Essone.  This means that Essone is Company Pea's subsidiary.  In preparing consolidated financial statements to report the financial status and results of operations for Company Essone, Company Pea will consolidate 100% of Company Essone while accounting for noncontrolling interest of 10% (effectively 90%).

When Company Essone is consolidating its financial statements, it should consolidate 80% of Company Esstwo while Esstwo consolidates 100% of Company Essthree.

But since Essthree is also a subsidiary of Company Pea, Company Pea will consolidate Esstwo and Essthree's financials to the tune of 72% respectively, while consolidating 90% of Essone's.

You might be interested in
Compute the total manufacturing cost for a manufacturer with the following information for the month. Raw materials purchased $
olga_2 [115]

Answer:

Cost of goods manufactured= $87100

Explanation

Total manufacturing cost is the aggregate amount of cost incurred by a business to produce goods in a reporting period.

Generally accepted accounting principles require that the cost of goods sold shall consist of:

the cost of direct materials

the cost of direct labor

the cost of manufacturing overhead

Expenses that are outside of the manufacturing facilities, such as selling, general and administrative expenses, are not product costs. They are reported as expenses on the income statement in the accounting period in which they occur.

In this exercise:

<u>Cost of goods manufactured:</u>

Direct materials= $56,000

Direct Labor=$15,600

Factory overhead=Factory supervisor salary+ Depreciation expense+Indirect materials= 10,000 +3,700+1,800= $15,500

Total= $87100

Note: Salesperson commissions and  Depreciation expense Delivery equipment are not included in factory overhead

4 0
3 years ago
Jake wants to purchase a new computer and go to the Caribbean for spring break. The computer is priced at $1,299, and the vacati
In-s [12.5K]

Answer:

1. Jake can easily determine that the price of the computer is more than the price of the vacation.  ⇒ UNIT OF ACCOUNT

2. Jake has $1,574 in his checking account.  ⇒ STORE OF VALUE

3. Jake writes a check for $1,299. ⇒ MEDIUM OF EXCHANGE

Explanation:

The four functions of money are:

  1. unit of account: since money is a common denominator, it helps to assign value to different goods and services.
  2. store of value: you can save money in order to purchase gods and services in the future.
  3. medium of exchange: you can purchase and sell goods and services using. money
  4. standard of deferred payment: money allows loans that require future payments of both principal and interest.

5 0
3 years ago
Individual marketing across segments creates more total sales than any other type of marketing. ​
Flura [38]

Answer:

false

Explanation:

7 0
3 years ago
Joyce’s office building was destroyed in a fire (adjusted basis of $350,000; fair market value of $400,000). Of the insurance pr
professor190 [17]

Answer:

$10,000 gain

Explanation:

The computation of recognized loss or gain is shown below:

= Insurance proceeds amount - adjusted basis

= $360,000 - $350,000

= $10,000 gain

So, it would have a recognized gain of $10,000 by considering the amount of insurance proceed and adjusted basis. We ignore all other information which is given in the question

3 0
2 years ago
What are the matters to be considered while studing market ? write in brief​
ELEN [110]

Answer:

The purpose of researching a market is to figure out how you can best attract those who are likely to buy your company's products or services. 

6 0
2 years ago
Other questions:
  • Forbes, fortune, and similar types of magazines often contain ads for rolex watches, bmw automobiles, and other luxury items. ad
    15·1 answer
  • Jorge, a forklift truck operator for the retail chain Hanes Ridge, was injured when the forklift he was operating toppled over.
    15·1 answer
  • Nexis Corp. issues 1,000 shares of $15 par value common stock at $22 per share. When the transaction is recorded, credits are ma
    14·1 answer
  • Diagraphs are voiced combinations of two or three consonants
    15·1 answer
  • Which of the following phases of the accounting information processing cycle is performed at the end of the accounting period? A
    12·1 answer
  • The range of S is 74 while that of P is 37 across the two states. What is the hedge ratio of the put
    15·1 answer
  • Why has it become more difficult for teens to find part-time and summer work
    11·2 answers
  • On January 4, 2021, Snow Co. purchased 40,000 shares (40%) of the common stock of Walker Corp., paying $900,000. There was no go
    15·1 answer
  • Generally, the payment of an accelerated death benefit is _______ to a recipient if the benefit payment is qualified.
    13·1 answer
  • Alan karbashian spends all day driving from customer site to customer site for sales meetings in his job with a national medical
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!