F4/M6 Intercompany Transactions Flashcards
(T/F): When consolidating, even if there is NCI, eliminate 100% of intercompany transactions
True
(T/F): Adjusting JE’s require you to eliminate profit in ending inventory and reduce COGS for the % of profit still in ending inventory
True
(T/F): If the sub acquires the parents bond from an outsider, the bond is considered to be retired and a G/L is recognized on the Consolidated I/S
True
(T/F): Retained earnings is Debited and Land is credited for every year after the intercompany transaction until the land is sold to a third party
True
Necessary JE to adjust intercompany sale of machinery and adjust depreciation expense
Eliminate gain on intercompany sale
Restore asset to original value before sale
Reinstate accumulated depreciation amount before sale
In the consolidated financial statements of a parents and its subsidiaries, what amount of dividends should be reported in the consolidated financial statements?
Only the dividends paid to NCI
(T/F):On the Consolidated Balance Sheet, only report Parents Equity and the portion of NCI
True