Business, 15.04.2020 15:50 timjape3g3z
Jimmitz Inc. is a subsidiary of Krocker Gear. Jimmitz sells shoe accessories to Krocker at a 25% markup on cost. Information on these intercompany merchandise transactions is below: Inventory balance on Krocker’s books, purchased from Jimmitz, January 1, 2020 $11,250 Inventory balance on Krocker’s books, purchased from Jimmitz, December 31, 2020 10,250 Total sales revenue recorded by Jimmitz on merchandise sales to Krocker in 2020 1,500,000 Required a. Prepare the working paper eliminating entries related to these intercompany transactions at December 31, 2020. Description Debit Credit Answer Answer 2250 Answer 0 Answer Answer 0 Answer 2250 To eliminate the intercompany profit from Krocker's beg. Inventory. Answer Answer 1500000 Answer 0 Answer Answer 0 Answer 1500000 To eliminate intercompany sales and purchases. Answer Answer 2050 Answer 0 Answer Answer 0 Answer 2050 To eliminate the intercompany profit from Krocker’s ending inventory. b. Krocker sold shoes containing Jimmitz
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Jimmitz Inc. is a subsidiary of Krocker Gear. Jimmitz sells shoe accessories to Krocker at a 25% mar...
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