Selected information from the separate and consolidated statements of financial position and statements of comprehensive income of P Company. and its subsidiary, S Company., as of December 31, 2019, and for the year then ended is as follows: P Company S Company Consolidated Statement of financial position accounts Accounts receivable . Inventory.. Investment in S Co.. Goodwill. Noncontrolling interest.. Stockholders' equity . P 26,000 30,000 67,000 P19,000 25,000 P 42,000 50,000 30,000 10,000 154,000 50,000 154,000 Statement of comprehensive income accounts P200,000 150,000 50,000 Revenues. Cost of goods sold . Gross profit. P140,000 110,000 30,000 P300,000 225,000 75,000 Equity in earnings of S Co. Net income. P9,000 P36,000 P20,000 P36,000 Additional information During 2019, P Company sold goods to S Company at the same markup on cost that P Co uses for all sales. At December 31, 2019, S Co had not paid for all of these goods and still held 50% of them in inventory. P Company acquired its interest in S Company five years earlier (as of December 31, 2019)
Selected information from the separate and consolidated statements of financial position and statements of comprehensive income of P Company. and its subsidiary, S Company., as of December 31, 2019, and for the year then ended is as follows: P Company S Company Consolidated Statement of financial position accounts Accounts receivable . Inventory.. Investment in S Co.. Goodwill. Noncontrolling interest.. Stockholders' equity . P 26,000 30,000 67,000 P19,000 25,000 P 42,000 50,000 30,000 10,000 154,000 50,000 154,000 Statement of comprehensive income accounts P200,000 150,000 50,000 Revenues. Cost of goods sold . Gross profit. P140,000 110,000 30,000 P300,000 225,000 75,000 Equity in earnings of S Co. Net income. P9,000 P36,000 P20,000 P36,000 Additional information During 2019, P Company sold goods to S Company at the same markup on cost that P Co uses for all sales. At December 31, 2019, S Co had not paid for all of these goods and still held 50% of them in inventory. P Company acquired its interest in S Company five years earlier (as of December 31, 2019)
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 24E
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1) determine the carrying amount of the inventory that S Company purchased from P Company in the December 31, 2019 consolidated
2)
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