Advanced Accounting
7th Edition
ISBN: 9781119373209
Author: JETER, Paul K. Chaney
Publisher: WILEY
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Chapter 7, Problem 5E
To determine
Prepare
- A. P Company purchased the land from S Company.
- B. S Company purchased the land from P Company.
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P Company owns 80% of the outstanding common stock of S Company. On January 1. 2018, S Company sold land to P Company for OMR 500,000. S Company originally purchased the land for OMR 300,000.
On January 1, 2019, P Company Sold the land purchased from S Company to a company outside the affiliated group for OMR 600,000.
Prepare the journal entry of intercompany sales.
Prepare in general journal form the workpaper entries necessary because of the inter company sale of land in the consolidated financial statements workpaper for the year ended December 31, 2019.
Difference between Internal reconstruction and External reconstruction (Merger and acquisition)?
P Company owns 90% of the outstanding common stock of S Company. On January 1, 2020, S Company sold land to P Company for $600,000. S Company originally purchased the land for $400,000. On January 1, 2021, P Company sold the land purchased from S Company to a company outside the affiliated group for $700,000.
Required: Prepare in general journal form the workpaper entries necessary because of the intercompany sale of land in the consolidated financial statements workpaper for the year ended December 31, 2021.
On January 1, 2021, Seema an affiliated company sold land that cost $240,000 to its parent, Prime Company at a transfer price of $400,000. On August 18,
2030, Prime sold the land to outside parties for $460,000 cash.
1-Prepare consolidated entries necessary, (LEAVE EMPTY LINE BETWEEN ENTRIES.)
a-at the end of the year of the intra-entity transfer 2021.
b-in 2022 and subsequent years.
c-the sale of the land to outsiders in 2030.
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