Assume that a wholly owned subsidiary sells inventory to the parent company. The parent company, ultimately, sells the inventory to customers outside of the consolidated group. The parent company compiled the following data for the years ending 2018 and 2019: Subsidiary Net Income Intercompany Inventory Sales Gross Profit % % Inventory Remaining at End of Year Receivable (Payable)
2019 $600,000 $80,000 35% 15% $30,000
2018 $500,000 $60,000 30% 12% $25,000
Assume that inventory not remaining at the end of the year was sold outside of the consolidated group during the year.
Assume the parent company uses the equity method to account for its subsidiary. The subsidiary paid $450,000 in dividends during 2019.
Required:
a. How much Equity Income should the parent report in its pre-consolidation income statement for the year ending 2019, assuming that it uses the equity method of accounting for its Equity Investment?
b. Prepare the required consolidation journal entries for 2019.

Selected t-account balances for bloomfield company are shown below as of january 31, which reflect its accounting adjustments. the firm uses a calendar-year accounting period, but prepares monthly accounting adjustments. suppliesjan. 31 bal. 1,800 1,800 jan. 31 bal. supplies expensejan. 31 bal. 1,920 1,148 jan. 31 bal. prepaid insurancejan. 31 bal. 1,148 1,148 jan. 31 bal. insurance expensejan. 31 bal. 164 164 jan. 31 bal. wages payablejan. 31 bal. 1,400 1,400 jan. 31 bal. wages expensejan. 31 bal. 6,400 6,400 jan. 31 bal. truckjan. 31 bal. 17,376 17,376 jan. 31 bal. accumulated depreciation -truckjan. 31 bal. 5,068 5,068 jan. 31 bal. a. if the amount in supplies expense represents the january 31 adjustment for the supplies used in january, and $1,240 worth of supplies were purchased during january, what was the january 1 beginning balance of supplies? $answerb. the amount in the insurance expense account represents the adjustment made at january 31 for january insurance expense. if the original insurance premium was for one year, what was the amount of the premium, and on what date did the insurance policy start? amount of the premium $answerthe policy began on answerjune 1july 1august 1september 1october 1november 1 of the previous year. c. if we assume that no beginning balance existed in either in either wage payable or wage expense on january 1, how much cash was paid as wages during january? $answerd. if the truck has a useful life of four years (or 48 months), what is the monthly amount of depreciation expense, and how many months has bloomfield owned the truck? answermonths