Advanced Accounting Essay

2160 Words Oct 30th, 2011 9 Pages
1. Pratt Company owns 80% of Storey Company’s common stock. During 2008, Storey sold $400,000 of merchandise to Pratt. At December 31, 2008, one-third of the merchandise remained in Pratt’s inventory. In 2008, gross profit percentages were 25% for Pratt and 30% for Storey. The amount of unrealized intercompany profit that should be eliminated in the consolidated statements is
2. Pratt Company owns 80% of Storey Company’s common stock. During 2008, Storey sold $400,000 of merchandise to Pratt. At December 31, 2008, one-third of the merchandise remained in Pratt’s inventory. In 2008, gross profit percentages were 25% for Pratt and 30% for Storey. The amount of cost of goods sold in the consolidated statements is
3. Sales from a
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19. Freeman Company purchased €100,000 of inventory on November 20, 2010. If Freeman paid for the inventory on January 20, 2011, what is the foreign currency gain/loss reported on the income statement in 2011?

20. Freeman Company is a US company that made a sale on account of €90,000 on December 20, 2010. Freeman still has the receivable outstanding at December 31, 2010. What is the account receivable reported on the December 31 balance sheet?

21. Freeman Company is a US company that made a sale on account of €90,000 on December 20, 2010. Freeman still has the receivable outstanding at December 31, 2010. What is the amount of sales reported in 2010?

22. Freeman Company is a US company that made a sale on account of €90,000 on December 20, 2010. Freeman still has the receivable outstanding at December 31, 2010. What is the foreign currency transaction gain/loss reported in 2010?

23. Freeman Company is a US company that made a sale on account of €90,000 on December 20, 2010. Freeman still has the receivable outstanding at December 31, 2010. What is the account receivable at December 31, 2010, in US dollars?

24. Freeman Company is a US company that made a sale on account of €90,000 on December 20, 2010. If Freeman receives payment on January 20, 2010, what is the exchange gain or loss reported in 2011?

25. The following balance sheet accounts of a foreign subsidiary at December

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