how to solve this, the current solution didn't really answer the question. P6-1...
50.1K
Verified Solution
Link Copied!
Question
Accounting
how to solve this, the current solution didn't really answer the question.
P6-1 Downstream sale of land Rashed QSC is a 90 percent-owned subsidiary of Nase QSC. The separate trial balance for the year ended in 2014 for both companies is as follows: Debits Nase QSC Rashed QSC Cash $ 200 $ 100 Accounts receivable 300 200 Inventory 700 800 Land 1,200 700 Equipment 400 400 Investment in Rashed QSC 2.880 0 Cost of sales 2,400 1,700 Other expenses 200 200 Dividends 300 100 Total $ 8,580 $ 4,200 Credits Accounts payable Common stock Retained Earnings Sales Gain on sale of land Total $ 100 2.200 2,980 3.100 200 $8.580 $ 100 1,000 800 2.300 0 $ 4,200 ADDITIONAL INFORMATION 1. During 2014, Rashed QSC sells inventories for $700,000 to Nase QSC. Nase QSC s inventories at Decem- ber 31, 2014, include an unrealized profit of $100,000. 2. On March 1, 2014, Rashed QSC purchases land for $500,000 from Nase QSC. The value of the land in Nase QSC's book at this date is $300,000. 3. Nase QSC's accounts receivable at the end of 2014 includes $100,000 due from Rashed QSC. 4. Any fair value/book value differential is due to goodwill. REQUIRED: Prepare consolidation workpapers for Nase QSC and Subsidiary for the year ended December 31, 2014
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
