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Journal entries/Workpaper elimination entries needed for this problem?
Company A purchased, for cash, a $60,000 custom machine on January 1, 2013. The machine has an estimated useful life of five years, and will be depreciated straight-line with no salvage value. The machine was leased on January 1, 2013, to Company B, an 80% owned subsidiary, under a five-year operating lease for $15,000 per year, payable each January 1st.
Required:
A. Prepare the actual journal entries recorded by Company A to account for the machine and the lease in 2013.
B. Prepare the actual journal entries recorded by Company B to account for the machine and the lease in 2013.
C. Prepare the workpaper elimination entries needed to prepare consolidated financial statements for the year ended December 31, 2013.
It's a doozy, I know.
2 AnswersOther - Business & Finance8 years agoHow many ways can 12 people be divided into groups of two people?
I thought this was a simple combination problem in which the order is not important (and there cannot be any repeats). So, I used the combination formula C (n,k) = n! / (k!(n-k)!) with n = 12 and k = 2 and got 66, but the correct answer (at least according to the solutions manual) is 7,484,400. Is that right?
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http://www.youtube.com/watch?v=vEq23RIr8pU
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http://www.nytimes.com/interactive/2011/11/06/spor...
I'd sleep like a baby after reading that.
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http://www.nytimes.com/interactive/2011/11/06/spor...
I'd sleep like a baby after reading that.
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Bring back the guillotine for this sack of scum.
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