Advanced accounting

posted by .

Up owns 80% of Down. During 2009 Down began selling merchandise to Up at gross profit margin of 20%. Sales by Down to Up for the year totaled $80,000, of which $10,000 remain unsold. In 2010 Down sold $100,000 merchandise to Up at gross margin of 40%. Up’s Ending inventory balance at the end of 2010 is $25,000. Prepare the journal entries for 2009 and 2010 to eliminate and adjust for the intercompany transaction.

  • Advanced accounting -

    Hanna Company borrows $80,000 on July 1 from the bank by signing a $80,000, 10%, one-year note payable.


    Prepare the journal entry to record the proceeds of the note.
    Date Account/Description Debit Credit
    July 1


    Prepare the journal entry to record accrued interest at December 31, assuming adjusting entries are made only at the end of the year.
    Date Account/Description Debit Credit
    Dec. 31

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Retail Math

    The buyer of women's gloves currently has an average inventory of $20500, with an annual turnover rate of 4.0. Because this rate of stock turn is below the industry average, a 7.82% increase in turnover is sought. Assuming a constant …
  2. Math

    A retail outlet purchased 400 printers at a list price of $80 less 6%, 3%. The Gross Profit Margin on the printers was 50%. After selling 50% of the shipment, the rest of the printers were marked down to a reduced selling price. When …
  3. accounting

    During 2008, Cynthia sold a vacat lot to Joseph for $180,000. Cynthia's adjusted basis in the lot was $101,000 and she incurred selling expenses of $7,000. Joseph paid Cynthia $30,000 down payment in 2008 and agreed to pay $30,000 …
  4. Accounting

    Absorption Income versus Contribution Margin Income Absorption Income versus Contribution Margin Income Given the computations for both gross profit on sales and contribution margin, can you give specific benefits to be derived from …
  5. Accounting

    Carpaitha Inc began 2009 with $140,000 in cash. The company plans to have $1,400,000 accrual basis sales revenue during the year, of which it plans to collect 80% in 2009 and the other 20% in 2010. The company plans to record the following …
  6. accounting

    Houser Appliances accounts for all sales of its merchandise on the installment basis. Following is the unadjusted trial balance at 12/31/12. Cash $45,000 Installment accounts receivable—2010 20,000 Installment accounts receivable—2011 …
  7. accounting

    The following transactions occurred during March 2009 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. 1. Issued 30,000 shares of common stock in exchange for $300,000 in cash. 2. Purchased equipment …
  8. Accounting

    Ferguson Company was started in 2008 when it acquired $60,000 from the issue of common stock. The following data summarize the company's first years' operating activities. Assume that all transactions were cash transactions. 2008 2009 …
  9. accounting

    Fill in the blanks in the following separate income statements a through e. Identify any negative amount by putting it in parentheses. a b c d e Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $60,000 $42,500 …
  10. accounting

    Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. Halifax only makes credit sales. The company began 2013 with an allowance for sales …

More Similar Questions