Flintstone Inc. acquired all of Rubble Co. on January 1, 2011. Flintstone decided to use the initial value method to account for this investment. During 2011, Flintstone sold to Rubble for $600,000 inventory with a cost of $500,000. At the end of the year 30% of the goods were still in Rubble's inventory.
Required:
Prepare Consolidation Entry TI for the intra-entity transfer and Consolidation Entry G for the ending inventory adjustment necessary for the consolidation worksheet at 12/31/11.

Question

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The Answer of Flintstone Inc. acquired all of Rubble Co. on January 1, 2011. Flintstone decided to use the initial value method to account for this investment. During 2011, Flintstone sold to Rubble for $600,000 inventory with a cost of $500,000. At the end of the year 30% of the goods were still in Rubble's inventory.
Required:
Prepare Consolidation Entry TI for the intra-entity transfer and Consolidation Entry G for the ending inventory adjustment necessary for the consolidation worksheet at 12/31/11.