Virginia Corp

question 19

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 2012, Virginia made cash sales of $400,000 to Stateside. The gross profit rate was 30% of the selling price. By the end of 2012, Stateside had sold 75% of the goods to outside parties for $420,000 cash.
Prepare any 2013 consolidation worksheet entries that would be required regarding the 2012 inventory transfer.

Learn the difference between situational and dispositional attributions and how they affect our understanding of behavior.

Identify the components and effects of central and peripheral route persuasion.

Recognize the foot-in-the-door phenomenon and its implications for behavior and attitudes.

Understand the fundamental attribution error and its implications for judging others.

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Definitions:

Year 2

The second year in a series, timeline, or sequence, often referring to financial or operational periods.

Variable Costing

An accounting method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in product costs, excluding fixed overhead.

Net Operating Income

A financial metric that calculates how much profit a business generates from its regular operational activities, excluding non-operating income and expenses.

Operating Loss

A financial situation indicating a company's expenses have surpassed its revenue from operations, resulting in a negative operating income.