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    Journal Entries, Worksheets and Transactions

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    Tribbs sold one of its products to Quicker for resale to its customers. The details include the following:

    Tribbs' sale price was $300,000.
    Tribbs' cost to make the product was $180,000.
    Quicker has sold 50% of the product to its customers during the year with the remaining $100,000 still in inventory.
    Quicker sold the product for $130,000.
    Quicker made $110,000 in profits for the year.
    Submit a report outlining your findings for your next combined meeting. Include the following:

    To record the transaction:
    Tribbs' entry
    Quicker's entry
    Consolidated worksheet entry at 12/31/05
    Intercompany sales entry
    Intercompany profits entry

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    Solution Preview

    DR = Debit
    CR = Credit

    Tribbs entry
    DR: Accounts receivable 300,000
    CR: Sales revenue 300,000

    DR: Cost of goods sold 180,000
    CR: Inventory 180,000

    Quicker entry*
    *I think there is an error here. 50% of 300,000 is 150,000 and ...

    Solution Summary

    The posting helps with a problem about that accounting cycle. This solution helps with a question about journal entries, worksheets and transactions.