Virginia Corp

question 56

Essay

Virginia Corp. owned all of the voting common stock of Stateside Co. Both companies use the perpetual inventory method, and Virginia decided to use the partial equity method to account for this investment. During 2020, Virginia made cash sales of $400,000 to Stateside. The gross profit rate was 30% of the selling price. By the end of 2020, Stateside had sold 75% of the goods to outside parties for $420,000 cash.Prepare the consolidation entries that should be made at the end of 2020.

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Definitions:

Moodiness

Exhibiting frequent changes in mood or emotions, ranging from happiness to sadness, irritability, or anger, often with little or no apparent reason.

Risky Behaviors

Actions or activities that can lead to negative outcomes, such as harm to oneself or others, often involving uncertainty or danger.

Identity Achievement

A status of self-identity development where an individual has gone through exploration and has made committed decisions regarding personal beliefs and goals.

Explored

The act of investigating or examining something thoroughly in order to discover more information or understand it better.