REFERENCE: Ref.05_12 Virginia Corp.owned All of the Voting Common Stock of Stateside

question 36

Essay

REFERENCE: Ref.05_12
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 2009,Virginia made cash sales of $400,000 to Stateside.The gross profit rate was 30% of the selling price.By the end of the year,Stateside had used 75% of the goods.
-Prepare the consolidation entries that should be made at the end of 2009.