P company | Business & Finance homework help
1. Preparing consolidation composition quibble settlement and extraction entries, P order extraneous all of the sordid store of S order on January 1, year 6, for $430. During Year 6, P order sold commodities on sumity absorbing $600 to S order for $1,000. S Order sold all of this commodities to its customers by the end of Year 6. On December 31, Year 6, S Order tranquil owes P Order $200 kindred to these interorder commodities transactions.
A] Prepare the composition-quibble settlement and extraction entries to conglutinate P Order and S Order for year 6.
B] Assume for this keep-akeep-apart that P Order hired $510, for all of the sordid store of S Order on January 1. Year 6. The sordid shareholders’ equity of S Order was $430 on this bound (+ sordid store of $100 + retained earning of $330). P Order attributes any redundancy of the merit absorb aggravate the dimensions appreciate of the net proceeds extraneous to a obvious, which it amortizes aggravate 10 years.
1) Compute the adjust in the sumity Investment in S Order on P Company’s dimensionss on December
31, year 6, stiff P Order uses the equity rule.
2) Prepare the composition quibble settlement and extraction entries to conglutinate P Order and S
Order for Year 6
(Since the conglutinated announcement does not exact any entries, content use the two companies financial basis to conglutinated their order financial instruction after a while the supposing announcement.)
2.Calculating COGS and List inferior LIFO and FIFO
Donuld Order sells sundry products. Sol is one of its favorite items. Adown is an partition of the list purchases and sales of Sol for the month of September. Donuld Order uses the intermittent list rule.
a. Using the FIFO selfreliance, reckon the whole pregnant to absorb of movables sold for September. (Show computations)
b. Using the LIFO selfreliance, reckon the whole assigned to the list on workman on September 30. (Show computations)
c. Reckon the LIFO withholding that would be reported in the order's dimensionss on September 30 if using LIFO.
3.Preparation of Announcement of Specie Flow Components
JEM Company's proportionately adjust quibbles for 2004 and 2005 pretence adown.
The forthcoming additional instruction is available: net allowance for the year 2005 (as reported on the allowance announcement) was $50,000; dividends of $40,000 were apparent and hired; and equipment that absorb $8,000 and had a dimensions appreciate of $1,000 was sold during the year for $2,500.
Based on the instruction supposing, response the forthcoming:
a. What was specie supposing by operations?
b. What was specie supposing by investing principle?
c. How fur was specie supposing by financing principle?
d. What is the sum shift in specie for 2005?
4.Depreciation rule by using “Sum-of –Digits Method)
Company purchased an equipment for $300,000. It has an estimated salvage of $20,000 and helpful vivacity of 8 years.
Prepare a diminution consultation by using sum-of-digits rule and pretence your acquitted caution.