outstanding common stock of Star Company.

During 2020, the affiliates engaged in intercompnay

sales as follows :

Sales of merchandise
Pace of Sand $ 40,000
Sand of Pace $ 60,000
Sand of Star $ 75,000
Star to Pace $ 50,000
$ 225,000

The following amounts of intercompany profits were included in the December 31, 2019, and December 31, 2020, in

Intercompany Profit in December 31, 2019, Inventory of

Selling Company Pace Sand Star Total
Pace Company $ 7,000 $ 7,000
Sand Company $ 5,000 $ 3,000 $ 8,000
Star Company $ 8,000 $ 8,000
Total $ 13,000 $ 7,000 $ 3,000 $23,000

Intercompany Profit in December 31, 2020, Inventory of

Selling Company Pace Sand Star Total
Pace Company $ 2,000 $ 2,000
Sand Company $ 6,000 $ 9,000 $15,000
Star Company $ 4,000 $ 4,000
Total $ 10,000 $ 2,000 $ 9,000 $21,000

Income from each company's independent operations (including sales to affiliates) for the year ended December 31, 2
Pace Company $ 200,000
Sand Company $ 150,000
Star Company $ 125,000

Required
A. Prepare in general journal form the workpaper entries necessary to eliminate intercompany sales and
intercompany profit in the December 31, 2020, consolidated financial statements workpaper.

B. Calculate the balance to be reported in the consolidated income statement for the following line items:
Consolidated income Noncontrolling interest in consolidated income Controlling interest in consolidated income.
9, and December 31, 2020, inventories of the individual companies :

he year ended December 31, 2020, is presented here :

mpany sales and

aper.

lowing line items:

st in consolidated income.
 JULYANI
2201757723
LB53

a) Sales $ 225,000
Purchases (Cost of Goods Sold) -
To eliminate intercompany sales for 2020

Ending Inventory - Income Statement (COGS) $ 21,000

Inventory 12/31 - Balance Sheet -
To eliminate unrealized profit in ending inventory

Beginning Retained Earnings - Pace Company $ 21,800

Non Controlling Interest $ 1,200
Beginning Inventory - Income Statement (COGS) -
To recognized gross profit in beginning inventory realized in current year

b) Calculation of Consolidated Income

Income from company's independent operations $ 475,000
Beginning Inventory (2019) $ 23,000
Ending Inventory (2020) $ (21,000.00)
Consolidated Income

Calculation of Noncontrolling interest in Consolidated income

Income from independent operations - Sand Company $ 150,000
Beginning Inventory - Sand Company $ 8,000
Ending Inventory - Sand Company $ (15,000.00)
Noncontrolling interest in Consolidated Income

Controlling interest in Consolidated net income

 -
$ 225,000

-
$ 21,000

-
-
$ 23,000

$ 477,000

$ 21,450

$ 455,550