Virginia Corp

question 60

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 journal entries for Virginia and Stateside to record the sales/purchases during 2010.

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Definitions:

Negative Schema

Persistent and pervasive patterns of thought that shape the way an individual interprets and understands the world, often leading to pessimistic views or expectations.

Depressing Memories

Recollections from the past that evoke feelings of sadness, despair, or hopelessness.

High Risk

A situation or condition that poses a greater likelihood of negative outcomes or dangers.