Poole Company owns a 90% interest in Solumbra Company. The consolidated income statement drafted by the controller of Poole Company appeared as follows: During your audit you discover that intercompany sales transactions were not reflected in the controller's draft of the consolidated income statement. Information relating to intercompany sales and unrealized intercompany profit is as follows: Required:
Prepare a corrected consolidated income statement for Poole Company and Solumbra Company for the year ended December 31, 2017.

Question

Poole Company owns a 90% interest in Solumbra Company. The consolidated income statement drafted by the controller of Poole Company appeared as follows:  During your audit you discover that intercompany sales transactions were not reflected in the controller's draft of the consolidated income statement. Information relating to intercompany sales and unrealized intercompany profit is as follows:  Required:
Prepare a corrected consolidated income statement for Poole Company and Solumbra Company for the year ended December 31, 2017.

Quizplus · Accepted Answer

The Answer of Poole Company owns a 90% interest in Solumbra Company. The consolidated income statement drafted by the controller of Poole Company appeared as follows:  During your audit you discover that intercompany sales transactions were not reflected in the controller's draft of the consolidated income statement. Information relating to intercompany sales and unrealized intercompany profit is as follows:  Required:
Prepare a corrected consolidated income statement for Poole Company and Solumbra Company for the year ended December 31, 2017.

Poole Company Owns a 90% Interest in Solumbra Company