All categories

2 years ago

Patti Company owns 80% of the common stock of Shannon, Inc. In the current year, Patti reports sales of

Business

1 answer:

Nikitich [7]2 years ago

3 0

Answer:

$7,604,500

Explanation:

Total cost of goods sold:

= Cost of goods sold of Patti Company + Cost of goods sold of Shannon Inc.

= $7,500,000 + $160,000

= $7,660,000

Consolidated cost of goods sold:

= Total cost of goods sold - Intra-Entity sales added in cost of goods sold of Shannon Inc. + Unrealized profit on ending inventory eliminated by adjusting cost of goods sold

= $7,660,000 - $60,000 + ($60,000 × 0.25) × 30%

= $7,660,000 - $60,000 + $4,500

= $7,604,500

You might be interested in

Wright Company's cash account shows a $27,700 debit balance and its bank statement shows $26,000 on deposit at the close of busi

zaharov [31]

Answer:

Cash account reconciliation:

Cash account balance $27,700

subtract bank fees ($110)

subtract NSF check <u> ($580)</u>

Reconciled balance $27,010

Bank account reconciliation:

Bank account balance $26,000

subtract outstanding checks ($5,700)

add deposits in transit $6,300

add error with Smith Company check <u> $410</u>

Reconciled balance $27,010

5 0

3 years ago

Marston acquired assets for $100,000. At the end of year 3, the assets had accumulated depreciation of $40,000. An impairment lo

MissTica

Answer:

(b)-Debit to loss on impairment of $12,000

Explanation:

As for the details in question,

The asset purchase price = $100,000

Accumulated depreciation = $40,000

Thus, book value = Purchase price - Accumulated depreciation = $100,000 - $40,000 = $60,000

Now, this has a fair market value = $48,000

Thus, loss of value to be recorded as impairment loss = $60,000 - $48,000 = $12,000

Since loss in value will decrease the value of asset, it will be debited against credit in fixed assets by $12,000

This, will represent book value = $48,000

Therefore, correct option is:

Statement B

7 0

2 years ago

Transactions Interstate Delivery Service is owned and operated by Katie Wyer. The following selected transactions were completed

nalin [4]

Answer:

1. Transaction: Received cash from owner as additional investment $18,000

Accounting equation element: Asset and Equity

Direction: Cash increases Equity increases

Account: Cash and Wyer capital

2. Transaction: Paid advertising expenses $4,850

Accounting equation element: Asset and equity

Direction: Cash decreases Equity decreases

Account: Cash and equity

3. Transaction: Purchase supplies on account $2,100

Accounting equation element: Asset and Liability

Direction: Asset increases Liability increases

Account: Supplies and Accounts payable

4. Transaction: Billed customers for delivery services on account $14,700

Accounting equation element: Asset and Equity

Direction: Asset increases Equity increases

Account: Accounts receivable and equity

5. Transaction: Received cash from customers on account $8,200

Accounting equation element: Asset and Asset

Direction: Cash increases and accounts receivable decreases

Account: Cash and accounts receivable

5 0

2 years ago

Which type of communication takes place in the absence of words? communication refers to communication that takes place without

Brut [27]

Non-verbal communication - visual cues, body language, eye contact, touch, blinking, glances, etc.

6 0

2 years ago

What can provide key data so you can develop a marketing plan that works?

agasfer [191]

<h3>Answer:</h3><h2>(C) Market Research</h2><h3>Explanation:</h3>

Market research is the method of getting information about your market. Preferably, this is precise information about your target market and the key determinants that control their buying decisions. Market research can be irregular and limited in scope and, although it may not be “statistically significant” research, it can still be helpful.

6 0

2 years ago

Read 2 more answers