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
Yakvenalex [24]
3 years ago
15

Peter Company acquired 75 percent of Sally Company on January 1, 2019 for $712,500. During 2019, Sally purchased inventory for $

35,000 and sold it to Peter for $50,000. Of this amount, Peter reported $20,000 in ending inventory in 2019 and later sold it in 2020. In 2020, Peter sold inventory it had purchased for $40,000 to Sally for $60,000. Sally sold $45,000 of this inventory in 2020. Required Prepare any necessary equity method entry(ies) on the books of Peter during 2019 made necessary by the above noted purchases of inventory.
Business
1 answer:
dezoksy [38]3 years ago
8 0

Answer:

Journal entry to eliminate Sale to Peter Company

Debit : Sales Revenue (Sally Company ) $50,000

Credit : Cost of Sales (Peter Company) $50,000

Explanation:

Peter Company and Sally Company are in a group and Peter Company is the Parent whilst Sally Company is the subsidiary.

For 2019 Eliminate an Intragroup Transactions that occur between Peter Company and Sally Company.

You might be interested in
John is a low-level employee at an accounting firm. In his duty as an employee at the firm, John forges documents and signatures
ANEK [815]

Answer:

the three of them could be held personally liable:

  • I. John
  • II. John's manager
  • III. The CEO, who in this specific case we assume could have prevented the crime.

Explanation:

John committed forgery and possibly fraud by forging clients' signatures on documents held by the company. His boss ordered him to do so, so he is also responsible for John's actions. John can even try to put all the blame on his boss alleging that he was forced to forge the signatures. The CEO of the firm is also responsible because the forged documents had to serve someone's illegal purposes, and the CEO probably was the one that needed them or knew about what was going on and didn't do anything to stop it.

6 0
3 years ago
The sarbanes-oxley act created the ____ to protect the interests of investors and further"
UNO [17]

Answer:

federal laws

Explanation:

The sarbanes-oxley act is a Federal legislation that was passed in the US on 30th July 2002. to reform, protect the accounting and corporate financial sector which includes the interest of the investors. Note: an act consist of written laws and it is made by the legislative arm of the government.

4 0
3 years ago
Why is going to a restaurant to eat dinner both a good.and a service
lions [1.4K]
You eat at the time you need to and they service you
3 0
3 years ago
Read 2 more answers
#7. Which is the most likely scenario in which someone would take out a short-term loan with a bank?
3241004551 [841]
Since it is a short term loan, it wouldn't be a second home or a car, because those are paid for over the course of YEARS.
A skateboard is usually ~100$ and doesn't need a loan. 

Your answer is C) To pay for credit card debt
6 0
3 years ago
According to classical macroeconomic theory, changes in the money supply affect:_______.
Ivahew [28]

Answer:

Option A. real GDP and the price level.

Explanation:

Option “A” is correct because the change in money supply (say increase) will decrease the interest rate and that will result in an increase in investment and more investment will generate more jobs and more money in consumers’ hands. Thus, they will stimulate the spending and aggregate demand will increase. Resulting in the rise in price and rise in real GDP. therefore, option A is right.

6 0
3 years ago
Other questions:
  • Dr. judd is convinced that psychological disorders result largely from stressful social situations rather than from disturbances
    14·1 answer
  • _________ memos state policies or procedures the writer wishes the reader to follow.
    9·1 answer
  • Rogers suggested that ideas are diffused through the market in systematic stages. During the ________ stage the customer decides
    6·1 answer
  • Bobcat Industrial Supply is considering a new project with estimated depreciation of $46,000, fixed costs of $39,000, and total
    7·1 answer
  • This problem has been solved!
    12·1 answer
  • You are considering an investment in a startup that will cost $100,000 but you will receive a cash inflow of $25,000 every year
    10·1 answer
  • A corporation was incorporated on January 1, Year 6, with $500,000 from the issuance of stock and borrowed funds of $75,000. Dur
    12·1 answer
  • You expect KT industries​ (KTI) will have earnings per share of $ 6 this year and expect that they will pay out $ 2.25 of these
    6·1 answer
  • Creating a favorable impression and building trust with prospective customers is a critical part of the __________ step of perso
    15·1 answer
  • The total direct materials purchases of materials A and B (assuming no beginning or ending material inventory) required for July
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!