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
Eduardwww [97]
3 years ago
14

Poseidon Co. holds 70% of the common stock of Saturn Co. In the current year, Poseidon report sales of $2,400,000 and cost of go

ods sold of $1,800,000. For this same period, Saturn has sales of $900,000 and cost of goods sold of $540,000. During the current year, Saturn sold merchandise to Poseidon for $300,000. Poseidon still possesses 40% of this inventory at the end of the current year. Saturn had established the transfer price based on its normal markup. What are consolidated sales and cost goods sold
Business
1 answer:
UkoKoshka [18]3 years ago
7 0

Answer:

<u>Consolidated sales and cost goods sold would be:</u>

Revenue : $3,000,000

Cost of Sales : $2,040,000

Explanation:

The Consolidation Process Includes 100% of Poseidon Co. and 100% of Saturn Co.

However Revenues for Saturn is Overstated and Cost of Goods Sold of Poseidon Co. are overstated due to the intragroup sale and thus the sale should be eliminated.

<u>Journal to Eliminate Intragroup Sale</u>

Revenue : Saturn Co $300,000 (debit)

Cost of Sales : Poseidon Co $300,000 (credit)

<u>Consolidated sales and cost goods sold would be:</u>

Revenue : $2,400,000+$900,000-$300,000 = $3,000,000

Cost of Sales : $1,800,000+$540,000-$300,000 = $2,040,000

You might be interested in
Green Grocer and Futurity Farms enter into an agreement whereby Futurity will supply Green Grocer with 200 dozen eggs every two
MatroZZZ [7]

Answer: a, provides 30 days' notice to futurist of its desire to terminate.

Explanation: for an appointment to be terminated, there would a notice prior that termination, you can't just terminate an appointment without a 30days notice.

6 0
3 years ago
True or faults caffeine and other energy boosters can be used to effectively compensate for fatigue
Zina [86]

True because coffee and other drinks can last up to hours of energy

7 0
2 years ago
Read 2 more answers
The term monopoly refer most specifically to
Alisiya [41]
<span>the exclusive possession or control of the supply or trade in a commodity or service.</span>
8 0
2 years ago
Analyzing Unearned Revenue Disclosures
Elan Coil [88]
Oh god its too long!!
4 0
3 years ago
1. Do you believe that auditors should be held liable for failing to discover fraud in situations such as ZZZZ Best, where top m
Gnoma [55]

Answer:

1.No,the Auditors should not be held liable for failing to discover the fraud.

2.The red flags in ZZZZ Best case are Account receivables,Current liabilities and Notes payables.

Explanation:

1. The auditors responsibility is to state if the financial statement prepared shows a true and fair view,and to vet compliance to statutory guidelines.They may detect fraud in the course of their audit,they can recommend but are not responsible to put control measures in place to prevent such. The management are responsible for the preparation of the financial statement and safeguarding of asset, consequently, liable for the content therein.

2. The sales were made on cash basis before the period in question,a major change in policy as such should have been well measured

3 0
3 years ago
Other questions:
  • What is the one thing that is both a strength and a weakness for the rail industry?
    8·1 answer
  • Identify the sentences with dangling modifiers. Be sure to check all that apply. Check all that apply. As the CEO, his e-mail me
    9·1 answer
  • The three-legged Ork, a space creature from the universe Warhammer, wears 1 right shoe and 2 left shoes. Which set of market bun
    12·1 answer
  • What is code of conduct in hospitality?​
    15·2 answers
  • In a duopoly game we observe the following payouts: if the two firms collude they will each earn $50,000. If one firm cheats the
    11·1 answer
  • _____ refers to a set of shared assumptions, values, and behaviors that characterize the functioning of an organization.
    6·1 answer
  • Suppose you structured a bond deal for Kanye West that paid him $20 million upfront, with future royalties and streaming revenue
    6·1 answer
  • Boersma Sales , Inc., a merchandising company, reported sales of 7100 units in September at a selling price of $682 per unit. Co
    9·1 answer
  • Suppose capital is readily substitutable for labor and that the price of capital falls. We can conclude that the :______________
    12·1 answer
  • The expected return on a portfolio: Group of answer choices can be greater than the expected return on the best performing secur
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!