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Flintstone Inc

question 66

Essay

Flintstone Inc.acquired all of Rubble Co.on January 1, 2018.Flintstone decided to use the initial value method to account for this investment.During 2018, 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 12/31/20.


Definitions:

Angle of the Jaw

The external angle formed by the junction of the lower edge of the mandible and the posterior edge, near where the jawbone curves upwards towards the ear.

Craniosynostosis

A congenital condition where one or more of the fibrous sutures in an infant's skull prematurely fuses by turning into bone, affecting skull and brain growth.

Fontanels

Soft spots on a baby's skull where the bones haven't fused together yet, allowing for growth of the brain and skull.

Congenital Hypothyroidism

A condition present at birth characterized by an underactive thyroid gland, resulting in a lack of thyroid hormones which are crucial for growth and development.

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