Virginia Corp

question 28

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 2010, Virginia made cash sales of $400,000 to Stateside. The gross profit rate was 30% of the selling price. By the end of 2010, 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 2010.

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Definitions:

English Customs

Traditions, behaviors, and practices that are characteristic of or unique to England, often reflecting its history and cultural heritage.

Code Noir

A set of laws first enacted in the French colonies in 1685, governing the treatment of slaves, with the aim of regulating the slave trade and the lives of black people in the French colonial empire.

Louisiana Slaves

Enslaved Africans and their descendants who lived and worked primarily in the state of Louisiana, experiencing a unique blend of French, Spanish, African, and American cultures.

French Immigrants

Individuals from France who move to another country, often seeking better opportunities or escaping political and social issues in their homeland.