ACG 4201 help A Guide to career/Snaptutorial ACG 4201 help A Guide to career/Snaptutorial | Page 7

Case 5-3: Alternative Ways to Transfer Asset to Subsidiary
The Case has four parts to complete. Part 1is to do journal entries to
record the sale of the equipment in the books of Pannier and purchase
of the equipment in the books of Jodestar. These are the same journal
entries you did in your Introductory accounting class. The accounts to
use are Sales, Notes Receivable, Cost of Goods Sold, and Inventory.
There are three entries (note that a debit and a credit is considered one
entry); two in the books of Pannier and one in the books of Jodestar.
Part 2 is to prepare a consolidated Income Statement and a
consolidated balance sheet. Note that the sale or purchase of the
equipment is not included in the trial balances. Use the templates
provided. Check figures for net income provided and the balance
sheet total are provided. Note that the ownership of Pannier of
Jodestar is 80%.